Morningstar: Alibaba Health's sales may have stabilized

Morningstar analyst Kai Wang reported that ALI HEALTH's sales may have stabilized in the current fiscal year. Due to a high comparison base driven by the pandemic in the previous fiscal year, the company's sales slowed in the fiscal year ending in March. Morningstar noted that its peer JD Health performed well in the six months ending in June. JD Health is a major competitor of ALI HEALTH, with both companies having similar market shares, and Wang believes that ALI HEALTH has a competitive advantage. The firm expects that when ALI HEALTH announces its next fiscal quarter results in October, its sales growth forecast will also be more optimistic. Morningstar raised its estimate of ALI HEALTH's fair value from HKD 4.20 to HKD 5.40