Alibaba Health Information Technology (0241) AI Stock Analysis

• Market Cap: $69.79B
• Dividend Yield: N/A
• Average Volume (3M): 99.69M
• Price to Earnings (P/E): 45.0
• Beta (1Y): 2.15
• Revenue Growth: -1.97%
• EPS Growth: 25.45%
• Country: HK
• Employees: 1,422
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.08
• Shares Outstanding: 16,123,569,000
• 10 Day Avg. Volume: 97,656,354
• 30 Day Avg. Volume: 99,685,313
• PEG Ratio: -0.42
• Price to Book (P/B): 4.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 268.20
• 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: $4.87
• Price Target Upside: 11.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• 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, 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 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
28.34B	27.03B	26.76B	20.58B	15.52B	9.60B
	Gross Profit
6.56B	5.90B	5.70B	4.11B	3.62B	2.23B
	EBIT
1.16B	717.40M	-51.50M	-1.10B	37.47M	-67.42M
	EBITDA
1.17B	999.05M	-24.48M	-188.12M	52.14M	-53.03M
	Net Income Common Stockholders
1.21B	883.48M	535.65M	-265.56M	348.59M	-6.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.73B	9.55B	10.92B	10.55B	11.64B	3.00B
	Total Assets
20.27B	19.71B	20.75B	19.20B	17.74B	7.87B
	Total Debt
68.05M	82.17M	77.80M	135.41M	37.74M	69.75M
	Net Debt
-7.37B	-9.47B	-10.84B	-10.41B	-11.60B	-2.53B
	Total Liabilities
5.02B	5.19B	5.60B	5.13B	3.46B	2.67B
	Stockholders Equity
15.28B	14.54B	15.17B	14.10B	14.30B	5.27B
Cash Flow		Free Cash Flow
722.42M	1.06B	250.08M	409.43M	992.35M	576.05M
	Operating Cash Flow
731.82M	1.08B	255.69M	424.36M	1.01B	583.62M
	Investing Cash Flow
-4.64B	-4.88B	-532.44M	1.87B	-4.96B	1.35B
	Financing Cash Flow
-1.99B	-1.98B	-111.28M	-58.63M	8.92B	328.81M

Alibaba Health Information Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.35 is below the 20-day moving average (MA) of 4.57, below the 50-day MA of 4.73, and above the 200-day MA of 4.24, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 7.99 is Positive, 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	80 Outperform	HK$126.72B	27.65	7.98%	―	6.51%	88.28%
0241	74 Outperform	$69.79B	44.96	9.31%	―	-1.97%	25.45%
Sector *	51 Neutral	$7.34B	0.29	-60.38%	2.38%	17.46%	1.71%
PANHF		$2.14B	88.16	0.96%	―	―	―
2696	72 Outperform	HK$26.09B	29.33	31.65%	―	4.23%	47.71%
2367	64 Neutral	HK$54.20B	22.51	36.16%	0.94%	54.44%	35.90%
1952	55 Neutral	HK$16.03B	―	-23.03%	―	461.36%	-16.43%

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.