[ET Net News Agency, 27 May 2019] J.P. Morgan raised its target price for Alibaba
Health Information Technology (00241) to HK$10.7 from HK$10 and maintained its
"overweight" rating.
The research house said the subscription of 60.6m shares at HK$7.5/share by AliHealth's
substantial shareholder, Ali JK, provides more funding for growth for AliHealth and
demonstrates strong support from the parent group.
JPM lifted its sales estimates for FY2020 and FY2021 by 17.9% and 22.4% to reflect the
company's strong revenue growth for FY2019. It expects the company can maintain such
growth momentum in the next 2 years because JPM believes the penetration of online drug
retail market will continue to rise and Alihealth is the leading company in this sector.
(KL)