ALI HEALTH (HK: 00241) shares fell more than 3% in early trading, last down 3.07% at HK$2.84 with turnover reaching HK$291 million. UBS has cut its target price on the company from HK$3.1 to HK$2.8, maintaining a "Sell" rating, with the new target based on 17 times adjusted earnings per share for fiscal 2028, down from the previous 19 times, slightly below the average of internet healthcare peers to reflect the company's weaker earnings growth prospects.

The brokerage now forecasts revenue growth of 7-10% for fiscal 2027, down from its earlier projection of 10-15%, primarily reflecting industry-wide challenges that have slowed growth in health supplements and medical device businesses, as well as the company's reduction in price discounts. Meanwhile, CICC noted that during the first half of fiscal 2027, it observed stricter regulatory oversight of overseas health supplements, leading to broad pressure on product sales in the sector, and believes the company's supplement category has also been negatively affected. However, given the continued rise in the overall online penetration rate of patented and innovative drugs, along with the company's expanding collaboration in the innovative drug space, CICC expects the pharmaceutical category to maintain robust growth in the first half of the fiscal year.