Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Equity Bottom-Up

Alibaba Health Information Tec / Equity Bottom-Up

<ul><li>Ali Health would apply more flexibility to the business structure, and we expect this change would positively impact the company's GPM.</li><li>In 2023, we also expect Ali Health to be more aggressive in cooperation with pharmaceuticals to boost its chronic disease management business.</li><li>While we expect the company's adj. profit to continue to improve, we have lowered our TP to HK$5.65 on the lowered valuation of the industry. </li></ul>

Ali Health would apply more flexibility to the business structure, and we expect this change would positively impact the company's GPM.In 2023, we also expect Ali Health to be more aggressive in cooperation with pharmaceuticals to boost its chronic disease management business.While we expect the company's adj. profit to continue to improve, we have lowered our TP to HK$5.65 on the lowered valuation of the industry. 

Ali Health - Business Structure Adjustments Would Improve the Revenue Structure

<ul><li>Ali Health reported a positive profit for 1H-FY23, with adj. profit of RMB350mn, compared to an adj. loss of RMB283mn for the corresponding period in 2021.</li><li>We expect Ali Health to achieve higher revenue and turnaround from loss to profit for FY23 on stringent cost control and business growth.</li><li>While we expect the company's adj. profit to continue to improve and have raised our TP by 58% to HK$10.0, with potential upside of only 9%, we downgrade our rating to HOLD.</li></ul>

Ali Health reported a positive profit for 1H-FY23, with adj. profit of RMB350mn, compared to an adj. loss of RMB283mn for the corresponding period in 2021.We expect Ali Health to achieve higher revenue and turnaround from loss to profit for FY23 on stringent cost control and business growth.While we expect the company's adj. profit to continue to improve and have raised our TP by 58% to HK$10.0, with potential upside of only 9%, we downgrade our rating to HOLD.

Ali Health (241 HK)  - Turned Around in 1H-FY23

<ul><li>Ali Health recorded resilient revenue growth in FY3/22 through its solid direct sale business and healthcare and digital services business.</li><li>The new rules for the online sale of drugs, which initially caused some investors concerns, are actually positive for developing online healthcare platform providers.</li><li>For the chronic disease management business, Ali Health cooperated with ZhongAn Insurance and Huiyitianxia to develop special health insurance policies for diabetes patients.</li></ul>

Ali Health recorded resilient revenue growth in FY3/22 through its solid direct sale business and healthcare and digital services business.The new rules for the online sale of drugs, which initially caused some investors concerns, are actually positive for developing online healthcare platform providers.For the chronic disease management business, Ali Health cooperated with ZhongAn Insurance and Huiyitianxia to develop special health insurance policies for diabetes patients.

Ali Health (241 HK; BUY; TP:HK$6.30) - Shifted to a New Growth Driver

China

Alibaba Health Information Technology Limited is an integrated healthcare information and content service provider. The Company uses product identification, authentication, and tracking system data for its healthcare information.

Alibaba Health Information Tec (241 HK)

Ali Health - Business Structure Adjustments Would Improve the Revenue Structure

Ali Health would apply more flexibility to the business structure, and we expect this change would positively impact the company's GPM.

Quam Securities

Ali Health (241 HK) - Turned Around in 1H-FY23

Ali Health reported a positive profit for 1H-FY23, with adj. profit of RMB350mn, compared to an adj. loss of RMB283mn for the corresponding period...

Quam Securities

Ali Health (241 HK; BUY; TP:HK$6.30) - Shifted to a New Growth Driver

Ali Health recorded resilient revenue growth in FY3/22 through its solid direct sale business and healthcare and digital services business.

Quam Securities