Alibaba Health Information Technology (0241) AI Stock Analysis

• Market Cap: HK$80.43B
• Dividend Yield: N/A
• Average Volume (3M): 147.70M
• Price to Earnings (P/E): 52.2
• Beta (1Y): 2.18
• Revenue Growth: -1.97%
• EPS Growth: 25.45%
• Country: HK
• Employees: 1,422
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.07
• Shares Outstanding: 16,123,642,000
• 10 Day Avg. Volume: 125,606,021
• 30 Day Avg. Volume: 147,696,929
• PEG Ratio: 1.17
• Price to Book (P/B): 4.34
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 51.47
• 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$5.81
• Price Target Upside: 16.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: ―

Alibaba Health Information Technology's overall score reflects strong financial performance with significant revenue growth and a solid balance sheet. Technical analysis presents mixed signals with some bearish indicators amidst an otherwise positive momentum. The high P/E ratio suggests potential overvaluation, which may deter certain investors. Despite these factors, the company's solid financial foundation supports an above-average score.

Alibaba Health Information Technology Business Overview & Revenue Model

Company Description

Alibaba Health Information Technology Limited (0241), a subsidiary of the Alibaba Group, is a leading digital health and pharmaceutical company in China. The company operates across various sectors, including online and offline pharmaceutical retail, medical services, and digital health solutions. Its core products and services encompass an extensive range of healthcare offerings such as e-commerce platforms for pharmaceuticals, health supplements, medical devices, and a digital platform that connects patients with medical professionals.

How the Company Makes Money

Alibaba Health Information Technology generates revenue through several key streams. Primarily, it operates e-commerce platforms where it sells pharmaceuticals, health supplements, and medical devices directly to consumers. The company also earns money through its digital health services by providing telemedicine consultations and health management services. Additionally, Alibaba Health leverages partnerships with pharmacies and healthcare providers to expand its reach and enhance service offerings. The integration of cutting-edge technologies and big data analytics enables the company to optimize its supply chain and enhance customer experience, contributing significantly to its earnings.

Alibaba Health Information Technology Financial Statement Overview

Summary

Alibaba Health Information Technology shows robust growth with strong revenue increases, improved gross profit margins, and a turnaround to positive net income. The balance sheet is strong with a high equity ratio and low debt, and cash flow management is effective though with room for further optimization.

Income Statement

Alibaba Health Information Technology shows strong revenue growth over the past few years, with a notable increase from HKD 9.6 billion in 2020 to HKD 27.0 billion in 2024. The gross profit margin has improved, and the company has turned its EBIT and net income positive after losses in previous years, reflecting a significant turnaround in profitability. However, the net profit margin remains modest, indicating room for improvement in operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity has improved as net income turned positive, suggesting effective use of shareholders' funds. High cash reserves provide additional financial flexibility.

Cash Flow

Alibaba Health has shown significant improvement in free cash flow, driven by increased operating cash flow. The operating cash flow to net income ratio is strong, highlighting effective cash management. However, the free cash flow to net income ratio could be further optimized, and fluctuations in investing and financing cash flows suggest some volatility in cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.60B	30.60B	27.03B	26.76B	20.58B	15.52B
Gross Profit	7.43B	7.43B	5.90B	5.70B	4.11B	3.62B
EBITDA	1.49B	1.62B	999.05M	-24.48M	-188.12M	52.14M
Net Income	1.43B	1.43B	883.48M	535.65M	-265.56M	348.59M
Balance Sheet
Total Assets	21.18B	21.18B	19.71B	20.75B	19.20B	17.74B
Cash, Cash Equivalents and Short-Term Investments	8.10B	8.10B	9.55B	10.92B	10.55B	11.64B
Total Debt	35.52M	35.52M	82.17M	77.80M	135.41M	37.74M
Total Liabilities	4.87B	4.87B	5.19B	5.60B	5.13B	3.46B
Stockholders Equity	16.31B	16.31B	14.54B	15.17B	14.10B	14.30B
Cash Flow
Free Cash Flow	1.40B	1.38B	1.06B	250.08M	409.43M	992.35M
Operating Cash Flow	1.40B	1.40B	1.08B	255.69M	424.36M	1.01B
Investing Cash Flow	-2.60B	-2.60B	-4.88B	-532.44M	1.87B	-4.96B
Financing Cash Flow	-72.52M	-72.52M	-1.98B	-111.28M	-58.63M	8.92B

Alibaba Health Information Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 4.99 is above the 20-day moving average (MA) of 4.69, above the 50-day MA of 4.61, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 62.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1093	77 Outperform	HK$115.03B	25.01	13.20%	2.63%	-9.60%	-27.18%
0241	74 Outperform	HK$80.43B	52.23	9.31%	―	-1.97%	25.45%
0867	71 Outperform	HK$32.01B	18.13	10.17%	4.49%	-8.91%	-34.40%
1177	68 Neutral	HK$133.78B	70.50	6.14%	0.96%	7.63%	-24.23%
2196	65 Neutral	HK$72.67B	16.97	6.22%	1.86%	-2.82%	11.93%
1115	56 Neutral	HK$2.13B	―	-21.94%	―	-29.75%	-62.96%
Sector *	51 Neutral	$7.39B	0.42	-62.86%	2.37%	15.61%	-1.93%

Alibaba Health Information Technology Corporate Events

Alibaba Health Revises Annual Caps and Renews Cloud Services Agreement

Alibaba Health Information Technology Limited announced revisions to its annual caps for the 2025–2027 Platform and Software Services Framework Agreements, citing insufficient original caps to meet business needs. Additionally, the company renewed its Cloud Computing Services Framework Agreement for 2026–2027, ensuring continued collaboration with Alibaba Cloud. These strategic adjustments aim to align with business growth and compliance with listing rules, reinforcing Alibaba Health’s operational capabilities and market positioning.

Alibaba Health Grants RSUs to Boost Employee Retention

Alibaba Health Information Technology Limited announced the grant of 1,095,200 Restricted Share Units (RSUs) to certain employees under the 2024 Share Award Scheme. The RSUs are designed to incentivize employees by providing them equity interests in the company, aligning their efforts with the company’s growth and development. These RSUs will vest over a period of two to four years and are not tied to performance targets, reflecting the company’s strategy to retain talent and encourage long-term commitment. This move is expected to strengthen employee loyalty and support the company’s expansion goals.