Haitong Securities International·2025-06-06 13:45Investment Rating - The report maintains an "Outperform" rating for AliHealth with a target price of HKD 5.42 per share [2][21]. Core Insights - The company reported a revenue of RMB 30.60 billion for FY3/25, reflecting a growth of 13.2%, and an adjusted net profit of RMB 1.95 billion, which is a 35.6% increase, leading to a net profit margin of 6.4% [3][15]. - The pharmaceutical self-operated business generated revenue of RMB 26.12 billion (+10.0%), while the e-commerce platform business saw a significant increase to RMB 3.59 billion (+54.0%) due to the consolidation of health advertising business [15][16]. - The healthcare and digital services segment reported a revenue decline to RMB 890 million (-7.6%) due to operational adjustments [16]. Revenue and Profitability Analysis - In the second half of FY3/25, the company achieved revenue of RMB 16.32 billion (+16.0%), driven by the pharmaceutical self-operated business, which grew 13.9% YoY [4][17]. - The gross margin for the fiscal year was 24.3%, an increase of 2.5 percentage points, with stable operating expense ratios [18]. Future Growth Projections - Revenue forecasts for FY26 and FY27 are projected at RMB 33.42 billion and RMB 36.14 billion, representing YoY growth of 9.2% and 8.1%, respectively [20]. - Adjusted net profit for FY26 and FY27 is expected to be RMB 2.32 billion and RMB 2.64 billion, with growth rates of 18.8% and 13.7% [20]. Valuation - The DCF valuation estimates the company's equity value at HKD 87.12 billion, corresponding to a target price of HKD 5.42 per share, based on a WACC of 8.3% and a perpetual growth rate of 3.5% [21].