Alibaba Health: New strategies in full stack drug retail, medical AI; key takes from meeting

研报英文原文证据摘录

Alibaba Health: New strategies in full stack drug retail, medical AI; key takes from meeting

Accessible version

Alibaba Health

New strategies in full stack drug retail,

medical AI; key takes from meeting

Reiterate Rating: BUY | PO: 5.10 HKD | Price: 3.85 HKD

Seizing opportunities: innovative drug retail, AI for doctor 26 May 2026

We hosted AliHealth’s management for post result investor meetings. During those Equity

meetings, AliHealth management elaborated on the new strategies to capture big

market opportunities. They see two market opportunities: 1) The drug category would

Key Changesremain the fastest growing vertical in online retail. Incremental drivers include a) quick

commerce, b) innovative drugs that are direct-to-consumer; 2) AI technology could (CNY) Previous Current

significantly improve doctors’ productivity. The company’s new strategies include: 1) Full Price Obj. HK$6.00 HK$5.10

stack drug retail service: AliHealth integrates the B2C, O2O, and digital tracking 2026E EPS 0.13 0.12

businesses for synergy in traffic, fulfilment network, and data insights, and be able to 2027E EPS 0.16 0.13

provide innovative drug pharma with highly efficient retail omnichannel service, 2028E EPS 0.20 0.16

monetizing from the merchandise as well as service (higher margin). 2) Medical AI:

AliHealth recently launched “Hydrion”, an AI model positioned as a medical AI assistant Miranda Zhuang, CFA >> Research Analyst

that could help doctors with natural language search, evidence-based Q&A, literature Merrill Lynch (Hong Kong)

review, Chinese-English comparison, and other functionalities. Company management +852 3508 2879 miranda.zhuang@bofa.com

hopes to have 2mn monthly active doctors (40% penetration) sign up in 3 years. We see Joanna Du >>