Vinfast: Ambitious EV Plan Seems Unrealistic; Share Price Down More than 50%

Alibaba Health: New Digital Healthcare Policy to Have Less Impact but Tumbling Margins Is Worrying

Alibaba Health 1H: Cost Enhancements Support Margins but Sustainabaility Remains to Be Seen

Tencent: Domestic Gaming Returns to Growth

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

High Conviction Shift: Margins at Record High with Strict Management and Operational Improvement

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Alibaba Health Information Tec / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-health-information-technology-ltd" target="_blank" data-smartkarma-citation="entities:453:1" rel="noopener">Alibaba Health Information Technology (241 HK)</a> ’s 2HFY03/2023 revenues beat consensus by 1.4% while adjusted operating losses of RMB1.74m (0.01% of revenue) is significantly lower compared to 2HFY03/2022 and consensus.</li>
<li>Improvement in profitability was driven by improved GPM coupled with decrease in SG&amp;A costs which helped offset increase in fulfilment costs as a result of the Covid-19 outbreak.</li>
<li>Our quantamental analysis suggests that Ali Health’s margins have very little room for improvement unless the company cuts down SG&amp;A significantly while improving revenue % from non-direct pharmaceutical businesses.</li>
</ul>



Alibaba Health Information Technology (241 HK) ’s 2HFY03/2023 revenues beat consensus by 1.4% while adjusted operating losses of RMB1.74m (0.01% of revenue) is significantly lower compared to 2HFY03/2022 and consensus.
Improvement in profitability was driven by improved GPM coupled with decrease in SG&amp;A costs which helped offset increase in fulfilment costs as a result of the Covid-19 outbreak.
Our quantamental analysis suggests that Ali Health’s margins have very little room for improvement unless the company cuts down SG&amp;A significantly while improving revenue % from non-direct pharmaceutical businesses.


Alibaba Health: Healthy 2H but Margins Have Very Little Room for Improvement (Quantamental)