Logo

The stock price of Alibaba Health has surged, primarily due to an increase in profit margins.

TraderKnows
TraderKnows
05-28

Alibaba Health's recent financial report shows a significant increase in profit margins, causing the stock price to rise sharply.

Alibaba Health Information Technology's stock price surged on Tuesday as the company's annual revenue saw significant growth due to improved profit margins and strong demand for medical services and pharmaceuticals on its platform.

Acquired by e-commerce giant Alibaba Group in 2014, the stock price jumped by as much as 13.7% to HKD 3.55, reaching a two-month high. It was also the largest gainer among the Hang Seng Index stocks, which rose 0.6% that day.

For the fiscal year ending March 31, 2024, Alibaba Health's adjusted net profit surged nearly 91% to RMB 1.44 billion (USD 200 million).

Despite sales appearing to plateau after three years of pandemic-driven rapid growth, revenue still rose by approximately 1%, reaching RMB 27.03 billion.

Alibaba Health benefited from improved profit margins, particularly in its online medical services and pharmaceutical sales.

The number of merchants on its Tmall Health platform surged by 28%, exceeding 35,000, with average user revenue growing by 17% year-on-year.

Looking ahead, the company indicated that 2024 could present macroeconomic challenges. However, it also announced plans to further delve into the internet health industry, particularly by building cloud infrastructure for Chinese hospitals.

Moreover, the company stated it would explore the potential of applying artificial intelligence through "large language models."

SKYPE TU

公众号2

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Technology stocks

Technology stocks refer to the shares of companies engaged in research and development, production, and sales within the technology industry. These companies are primarily involved in information technology, telecommunications, semiconductors, software development, and other sectors. Their shares are often considered to have higher growth potential and risk.

Related News

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Logo

Contact Us

Social Media

footer1