Alibaba Health: FY26 results first take

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Alibaba Health: FY26 results first take

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Alibaba Health

FY26 results first take

Maintain Rating: BUY | PO: 6.00 HKD | Price: 4.54 HKD

FY26 results within guidance, softer 2H 14 May 2026

AliHealth’s FY26 results were within guidance range, while slightly below consensus Equity

expectation and implying a slowdown in 2H. Dividend announcement was a positive

Miranda Zhuang, CFA >>

surprise. FY26 topline grew 12% YoY to RMB34.3bn vs. consensus’ RMB35.1bn. Adjusted Research Analyst

net profit grew 19% YoY to RMB2.33bn, vs. consensus’ RMB2.36bn. 2HFY26 topline Merrill Lynch (Hong Kong) miranda.zhuang@bofa.com

grew 8% YoY, vs. 17% YoY in 1H. 2HFY26 adj. net profit was flat YoY, vs. 39% YoY in 1H.

Joanna Du >>

We believe the softer 2H was mainly due to the medical device category, while the drug Research Analyst

category growth remained rapid. Merrill Lynch (Hong Kong) joanna.du@bofa.com

Special dividend + ordinary dividend; AI model for doctors AlexResearchLiu >>Analyst

The company announced a sizable total dividend package of RMB3.14bn, implying a Merrill Lynch (Hong Kong) alex.liu3@bofa.com

dividend yield of close to 5%. This is comprised of: 1) ordinary dividend of RMB0.0595

Joyce Ju >>

per share (1.5% dividend yield, around 50% payout of FY26 EPS); 2) special dividend of Research Analyst

RMB0.1352 per share (3.4% dividend yield). The company launched “Hydrion”, an AI Merrilljoyce.ju@bofa.comLynch (Hong Kong)

model positioned as a reliable medical AI assistant that can help doctors with natural

language search, evidence-based Q&A, literature review, Chinese-English comparison,

and others. We are encouraged by the enhanced shareholder return and maintain our Buy

Stock Datarating and PO of HKD6.

Results by line PricePrice Objective 4.546.00 HKDHKD