ALI HEALTH(00241) 海通国际·2024-11-26 04:56Investment Rating - The report maintains an "Outperform" rating for the company [2][13][31] Core Insights - The company has shown steady revenue growth and improved profit margins, achieving a revenue of CNY 14.27 billion (+10.2%) and a net profit of CNY 0.77 billion (+72.8%) for the first half of FY25 [7][23] - The consolidation of the advertising business in the health category has enhanced operational efficiency and pricing capabilities, contributing to the simultaneous improvement of gross and net profit margins [23][27] - The self-operated pharmaceutical business and the pharmaceutical e-commerce platform business have reported revenues of CNY 12.12 billion (+5.9%) and CNY 1.71 billion (+67.5%) respectively, while the medical health and digital services segment saw a decline in revenue [24][25][26] Financial Performance - Revenue projections for FY25 and FY26 are CNY 29.78 billion and CNY 32.80 billion, with expected year-on-year growth rates of 10.2% and 10.1% [10][30] - The net profit forecasts for FY25 and FY26 remain at CNY 1.56 billion and CNY 1.98 billion, reflecting improved operational efficiency and steady growth in the advertising business [10][30] - The company's gross profit margin is projected to increase to 23.9% in FY25 and 24.5% in FY26, indicating a positive trend in profitability [6][10] Valuation - Using the DCF valuation method, the company's equity value is estimated at HKD 87.15 billion, corresponding to a target share price of HKD 5.42, reflecting a 14.5% downward adjustment from previous estimates [13][31]