Goldman Sachs has issued a research report reducing the target price for ALI HEALTH (00241) from HK$4.2 to HK$3.6, while maintaining a "Neutral" rating. The adjustment comes as the company's non-pharmaceutical sales growth weakens, impacted by stricter overseas nutrition product regulations and a high comparison base for medical devices due to government subsidies.

The firm currently projects that pharmaceutical sales can still achieve a high double-digit year-on-year growth rate, supported by structural factors such as rising online penetration and the outflow of hospital prescriptions. Accordingly, Goldman Sachs has trimmed its revenue and net profit forecasts for fiscal year 2027 by 4% and 6%, respectively.

The bank notes that ALI HEALTH is redirecting savings from sales and marketing expenses into supply chain and fulfillment capabilities, which should accelerate the integration of B2C and O2O channels. This strategic shift supports the company's ongoing transition into an omnichannel pharmaceutical retail platform.

Goldman Sachs now expects fiscal year 2027 revenue to grow 9% year-on-year, and has also lowered its adjusted net profit estimates for fiscal years 2027, 2028, and 2029 by 6%, 3%, and 4%, respectively.