Alibaba Health Information Technology (0241) AI Stock Analysis

• Market Cap: HK$82.47B
• 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$8.75
• Price Target Upside: 56.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): HK$35.41B

• 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

Free Cash Flow Strength

A 90%+ surge in free cash flow indicates durable cash generation and strong earnings-to-cash conversion. That level of FCF provides lasting funding for platform investments, working-capital needs, and margin support, reducing reliance on external financing across the medium term.

Very Low Leverage

Near-zero debt gives substantial financial flexibility and lowers refinancing and solvency risk. Minimal leverage supports continued investment in operations and tech, preserves optionality for strategic moves, and helps the company absorb shocks without compromising long-term plans.

Improving Margins & Revenue

Consistent revenue growth alongside rising gross and net margins signals improving unit economics and operational efficiency. This suggests the platform and service mix are becoming more profitable, supporting sustainable margin expansion as scale and monetization deepen over months.

Negative Factors

Thin Net Margin

A net margin below 5% remains slim despite improvement, leaving limited buffer against cost shocks or pricing pressure. Persistently low net profitability constrains retained earnings for reinvestment and makes results more sensitive to regulatory, reimbursement, or competitive headwinds over the medium term.

Operating Cash Conversion Lag

An OCF-to-net-income ratio of 0.29 indicates much reported profit isn't immediately converted to operating cash, suggesting working-capital or timing exposures. That gap can increase liquidity risk during growth investments or sector stress, reducing resilience despite strong FCF headline growth.

Regulatory Exposure

Operating in China’s regulated internet-healthcare and pharmaceutical retail space creates structural policy risk. Licensing, online-sales rules or tighter controls can materially affect addressable market, distribution models, and compliance costs, potentially limiting growth and margins over the medium term.

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’s revenue model centers on monetizing healthcare product sales and platform-enabled services. Key revenue streams include: (1) Pharmaceutical and healthcare product sales (direct sales): The company earns revenue by selling prescription and over-the-counter drugs, medical devices, supplements, and other healthcare-related consumer products through its online pharmacy and associated channels; revenue is recognized from product sales, with gross profit driven by the spread between selling prices and procurement/fulfillment costs. (2) Platform and merchant services (commissions/service fees): Where third-party merchants sell through its marketplace/online pharmacy platform, the company earns service fees such as commissions, platform service fees, and/or other transaction-related fees tied to merchant activity and order volume. (3) Digital healthcare and value-added services: The company generates income from technology-enabled healthcare services (e.g., online medical/health-related services and related platform services) where applicable; monetization can include user payments, service fees, and/or fees charged to participating providers or partners, depending on the service structure. (4) Pharmaceutical supply-chain and enterprise services: The company may provide supply-chain-related, operational, and technology services to industry participants (such as pharmacies or pharmaceutical companies), earning service revenue linked to logistics, distribution support, or system/service provision where offered. Significant factors influencing earnings include scale and traffic from its online ecosystem, the breadth of product assortment and fulfillment capability, regulatory requirements for pharmaceutical retail and internet healthcare, and partnerships within the broader Alibaba ecosystem; specific partnership economics beyond public disclosures are null.

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 5.61, below the 50-day MA of 5.98, and above the 200-day MA of 5.57, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 32.15 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 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$159.38B	30.12	9.03%	―	18.56%	79.54%
0241	68 Neutral	HK$82.47B	19.51	14.09%	―	16.14%	53.86%
2367	66 Neutral	HK$32.34B	11.64	29.64%	1.84%	36.70%	22.26%
2696	66 Neutral	HK$24.49B	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$26.07B	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.