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China Internet / Alibaba Health Information Technology
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Key Indices
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Sector Update | China Internet
Chinese cloud and LLM companies are increasingly moving into chip development, with the strategic goals of reducing compute costs, securing supply, and improving model-hardware co-optimisation. The economic benefits ultimately show up in lower cost per token and better returns on AI capex. Maintain MARKET WEIGHT. Top BUYs: Alibaba and Z.AI.
Company Update | Alibaba Health Information Technology (241 HK/BUY/HK$3.06/Target: HK$4.00)
Ali Health lowered its FY27 revenue growth target from 10-15% to 7-10% yoy, while keeping adjusted net profit guidance unchanged at Rmb1.9b-2.3b. This reflects proactive optimisation of product-price subsidies, with savings redeployed into B2C+O2O supply-chain integration. We lower our FY27 revenue growth estimate from 12.4% to 8.5% yoy, while maintaining FY27-29 revenue and adjusted net profit CAGRs of 12% and 15% on innovative drugs momentum, deepened Alibaba synergies, and expanding AI adoption. Maintain BUY. Lower target price to HK$4.00.
Top Stories
Sector Update | China Internet
Chinese cloud and LLM companies are increasingly moving into chip development, with the strategic goals of reducing compute costs, securing supply, and improving model-hardware co-optimisation. The economic benefits ultimately show up in lower cost per token and better returns on AI capex. Maintain MARKET WEIGHT. Top BUYs: Alibaba and Z.AI.
Company Update | Alibaba Health Information Technology (241 HK/BUY/HK$3.06/Target: HK$4.00)
Ali Health lowered its FY27 revenue growth target from 10-15% to 7-10% yoy, while keeping adjusted net profit guidance unchanged at Rmb1.9b-2.3b. This reflects proactive optimisation of product-price subsidies, with savings redeployed into B2C+O2O supply-chain integration. We lower our FY27 revenue growth estimate from 12.4% to 8.5% yoy, while maintaining FY27-29 revenue and adjusted net profit CAGRs of 12% and 15% on innovative drugs momentum, deepened Alibaba synergies, and expanding AI adoption. Maintain BUY. Lower target price to HK$4.00.
Analyst
Key Indices
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