UBS: Downgrades Ali Health (00241.HK) rating to "Sell" as increased marketing expenses weigh on future three-year profit forecasts.

According to the Wise Finance and Economics APP, UBS released a research report stating that the profit growth potential of Alibaba Health (00241.HK) is decreasing, mainly due to the slowdown in sales growth of its self-operated business. With the increasing market competition under macroeconomic pressure, coupled with the high level of online sales penetration, it may be difficult to support the current valuation. Therefore, the rating has been downgraded from "Neutral" to "Sell", with the average compound annual growth rates of revenue and adjusted net profit estimated to be high single digits and low double digits percentages for the years 2025 to 2028.