Alibaba Health Information Technology (0241) AI Stock Analysis

• Market Cap: HK$83.44B
• Dividend Yield: N/A
• Average Volume (3M): 83.52M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 2.16
• Revenue Growth: 16.14%
• EPS Growth: 53.86%
• Country: HK
• Employees: 1,422
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.10
• Shares Outstanding: 16,175,301,000
• 10 Day Avg. Volume: 99,710,369
• 30 Day Avg. Volume: 83,522,295
• PEG Ratio: 1.17
• Price to Book (P/B): 4.33
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 51.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$7.92
• Price Target Upside: 41.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): HK$35.39B

• Rating: 68 Neutral
• Price Target: HK$5.50 ▼(-1.43% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by strong financial performance (improving profitability, very low leverage, and sharp free-cash-flow growth). This is partially offset by overbought technical conditions that raise near-term reversal risk, and a high P/E valuation with no dividend yield data provided.

Positive Factors

Robust cash generation

A 90% surge in free cash flow and nearly 1:1 FCF-to-net-income show the business converts earnings into cash efficiently. Durable cash generation supports reinvestment in platform features, partnerships, and working capital without relying on external financing, strengthening long-term resilience.

Very low financial leverage

Extremely low debt-to-equity provides strong financial flexibility and low default risk. This capital structure lets management fund growth initiatives, absorb regulatory or sector shocks, and pursue M&A or tech investments without the pressure of heavy interest costs, supporting sustainable operations.

Improving margins and profitability

Consistent revenue growth with rising gross and net margins and improving ROE indicate better cost control and monetization of platform services. Margin expansion and operational efficiency make earnings more durable and provide a foundation for scaling higher-margin offerings over the medium term.

Negative Factors

Low net-profit margin

A net margin under 5% limits the company's ability to absorb adverse shocks like pricing pressure or higher compliance costs. With a thin profitability buffer, sustained investment in product development or marketing may strain earnings and slow the pace of structural margin improvement over time.

Moderate revenue growth pace

Mid-single-digit revenue growth, while positive, may be modest for a digital healthcare platform competing to scale market share. Slower top-line expansion can constrain network effects, delay economies of scale in margins, and limit the company's ability to outpace larger incumbents over the medium term.

Exposure to regulatory and market risks

Operating in China's health-tech and online pharmacy sectors carries persistent regulatory and policy risk — licensing, drug distribution rules, and telemedicine oversight. Structural policy shifts can require costly compliance changes or limit certain revenue streams, impacting long-term growth and margins.

Alibaba Health Information Technology Business Overview & Revenue Model

Company Description

Alibaba Health Information Technology Limited, an investment holding company, engages in the pharmaceutical direct sales, pharmaceutical e-commerce platform, and healthcare and digital services businesses in Mainland China and Hong Kong. It offers range of prescription drugs, over-the-counter drugs, nutritional supplements, medical devices, contact lenses, and various other health-related products through its online stores on Tmall.com and offline pharmacy outlets to business-to-customer and business-to-business customers; and pharmaceutical products, medical devices and healthcare products, health food, sexual health and family planning products, contact lenses, and medical and healthcare services through its e-commerce platform. The company also provides medical and healthcare services, including medical checkups, nucleic acid testing, medical consultation, registration, vaccination, and TCM through various channels, such as Taobao, Tmall, Alipay, Dr. Deer APP, Gaode, DingTalk, and Quark. In addition, it engages in the tracking business; provision of network hospital, healthcare related internet information, internet information, and healthcare related technical services; operation of internet hospitals; and asset management services. The company was formerly known as CITIC 21CN Company Limited and changed its name to Alibaba Health Information Technology Limited in September 2014. Alibaba Health Information Technology Limited is based in Causeway Bay, Hong Kong.

How the Company Makes Money

Alibaba Health generates revenue through multiple streams, including sales of health management software to hospitals and healthcare institutions, transaction fees from its online pharmacy platform, and subscriptions for its telemedicine services. Additionally, the company earns revenue from partnerships with pharmaceutical companies for the distribution of their products on its platform. Its strategic collaborations with healthcare providers and technology firms enhance its service offerings, allowing for integrated health solutions that attract more users and increase transaction volumes, thus contributing significantly to its earnings.

Alibaba Health Information Technology Financial Statement Overview

Summary

Strong fundamentals: revenue grew 7.95% with improved gross margin (24.29%) and net margin (4.68%). Balance sheet risk is low with minimal leverage (debt-to-equity 0.0022) and improving ROE (8.78%). Cash generation is robust, with free cash flow up 90.49% and strong earnings-to-cash conversion.

Income Statement

Alibaba Health Information Technology has demonstrated strong revenue growth with a 7.95% increase in the latest year. The gross profit margin has improved to 24.29%, indicating effective cost management. Net profit margin also increased to 4.68%, reflecting enhanced profitability. The EBIT and EBITDA margins have shown positive trends, suggesting operational efficiency improvements.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0022, indicating minimal leverage and financial risk. Return on equity has improved to 8.78%, showcasing effective use of shareholder funds. The equity ratio stands at a healthy level, reflecting a strong capital structure.

Cash Flow

Free cash flow growth has surged by 90.49%, highlighting robust cash generation capabilities. The operating cash flow to net income ratio is 0.29, indicating solid cash flow relative to earnings. The free cash flow to net income ratio is nearly 1, demonstrating efficient conversion of earnings into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.91B	30.60B	27.03B	26.76B	20.58B	15.52B
Gross Profit	8.05B	7.43B	5.90B	5.70B	4.11B	3.62B
EBITDA	2.16B	1.62B	999.05M	-24.48M	-188.12M	52.14M
Net Income	1.92B	1.43B	883.48M	535.65M	-265.56M	348.59M
Balance Sheet
Total Assets	23.26B	21.18B	19.71B	20.75B	19.20B	17.74B
Cash, Cash Equivalents and Short-Term Investments	9.39B	8.10B	9.55B	10.92B	10.55B	11.64B
Total Debt	75.91M	35.52M	82.17M	77.80M	135.41M	37.74M
Total Liabilities	5.70B	4.87B	5.19B	5.60B	5.13B	3.46B
Stockholders Equity	17.57B	16.31B	14.54B	15.17B	14.10B	14.30B
Cash Flow
Free Cash Flow	1.60B	1.38B	1.06B	250.08M	409.43M	992.35M
Operating Cash Flow	1.60B	1.40B	1.08B	255.69M	424.36M	1.01B
Investing Cash Flow	-757.92M	-2.60B	-4.88B	-532.44M	1.87B	-4.96B
Financing Cash Flow	-52.74M	-72.52M	-1.98B	-111.28M	-58.63M	8.92B

Alibaba Health Information Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0241, the sentiment is Negative. The current price of 5.58 is below the 20-day moving average (MA) of 5.72, below the 50-day MA of 5.99, and above the 200-day MA of 5.56, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 35.08 is Neutral, neither overbought nor oversold. The STOCH value of 26.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0241.

Alibaba Health Information Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6618	72 Outperform	HK$160.54B	30.12	9.03%	―	18.56%	79.54%
0241	68 Neutral	HK$83.44B	19.51	14.09%	―	16.14%	53.86%
2367	66 Neutral	HK$32.38B	11.64	29.64%	1.84%	36.70%	22.26%
2696	66 Neutral	HK$24.90B	33.55	25.67%	―	2.57%	18.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1833	45 Neutral	HK$26.37B	29.64	1.37%	―	14.56%	―
1952	45 Neutral	HK$13.04B	-36.96	-15.75%	―	102.73%	38.42%

Alibaba Health Information Technology Corporate Events

Alibaba Health Shareholders Approve Higher Marketing Caps Under Alimama Framework

Alibaba Health Information Technology Limited announced that shareholders approved an ordinary resolution at a special general meeting held on 30 December 2025 in Hangzhou, with the measure passed by an overwhelming majority via poll. The resolution confirms and ratifies revised annual caps under the 2025–2027 Marketing and Promotion Services Framework Agreement with Hangzhou Alimama Software Services, raising the caps to RMB3.6 billion for the year ending 31 March 2026 and RMB4.8 billion for the year ending 31 March 2027, indicating the company’s intention to significantly expand its spending on marketing and promotion services. A large block of shares held by major Alibaba-related shareholders and the share award scheme trustee abstained in line with listing rules, leaving 5.79 billion shares entitled to vote; the near-unanimous support among voting shareholders underscores strong backing for the company’s strategy to deepen its collaboration with the Alibaba ecosystem and potentially drive higher traffic and transaction volumes in its healthcare platforms.

The most recent analyst rating on (HK:0241) stock is a Sell with a HK$4.60 price target. To see the full list of analyst forecasts on Alibaba Health Information Technology stock, see the HK:0241 Stock Forecast page.

Alibaba Health Grants 3.5 Million RSUs to Employees

Alibaba Health Information Technology Limited has announced the granting of 3,515,900 Restricted Share Units (RSUs) to 50 employees under its 2024 Share Award Scheme. This move is part of the company’s strategy to incentivize its workforce, with the RSUs set to vest over a four-year period, reflecting a commitment to long-term growth and employee retention.

The most recent analyst rating on (HK:0241) stock is a Sell with a HK$4.60 price target. To see the full list of analyst forecasts on Alibaba Health Information Technology stock, see the HK:0241 Stock Forecast page.

Leadership Transition at Alibaba Health Information Technology

Alibaba Health Information Technology Limited has announced a significant leadership change effective December 15, 2025. Mr. Shen Difan, currently serving as an executive director and CEO, has been appointed as the chairman of the board and the chairman of the nomination committee, succeeding Mr. Zhu Shunyan, who has resigned. This move, while deviating from the typical separation of roles as per the Corporate Governance Code, is believed to provide continuity and strong leadership for the company. The board emphasizes maintaining robust oversight to protect shareholder interests and will continue to evaluate the governance structure’s effectiveness.

The most recent analyst rating on (HK:0241) stock is a Sell with a HK$4.60 price target. To see the full list of analyst forecasts on Alibaba Health Information Technology stock, see the HK:0241 Stock Forecast page.

Alibaba Health Announces New Board of Directors

Alibaba Health Information Technology Limited has announced an updated list of its board of directors, effective December 15, 2025. The announcement outlines the roles and functions of each director, including the composition of the company’s board committees. This update is significant as it reflects the company’s strategic direction and governance structure, potentially impacting its operations and stakeholder relationships.

The most recent analyst rating on (HK:0241) stock is a Sell with a HK$4.60 price target. To see the full list of analyst forecasts on Alibaba Health Information Technology stock, see the HK:0241 Stock Forecast page.