CLSA released a research note stating that ALI HEALTH's (00241) revenue for the second half of the 2026 fiscal year was slightly below expectations, although profits were largely in line. To account for related investments, CLSA lowered its forecast for ALI HEALTH's adjusted net profit for the 2027 to 2028 fiscal years by 23%. Consequently, the target price was adjusted downward from HK$5.3 to HK$4.7, implying a potential upside of 11%. Based on the growth potential of pharmaceutical sales and an expected dividend yield of 4-5% this year, the "Outperform" rating was maintained.

Total revenue for the period increased by 8% year-over-year, which was 5% below the firm's projections. The gross margin declined, primarily due to the company's relatively aggressive pricing strategy for certain innovative drugs. Management provided revenue growth guidance for the 2027 fiscal year in the low teens percentage range, with pharmaceutical sales growth expected in the high teens, aligning with CLSA's expectations. The firm views innovative drugs as a continued strategic growth driver for ALI HEALTH, but notes that profits may decrease due to ongoing investments in innovative drugs and medical artificial intelligence. The company's investment in medical AI is planned over a three-year period.