Damo: Alibaba Health (0241.HK) recorded a loss in the medium term due to investment in new businesses, and it is expected that the loss in the second half of the fiscal year may expand

Morgan Stanley issued a report saying that Alibaba Health (0241.HK) Faying Police expects to record a net loss of no more than RMB320 million in the six months ended September this year (the first half of fiscal 2022), compared with the bank's original expected loss of RMB12 million, the loss is mainly due to the Group's increased resource allocation to invest in a series of innovative businesses such as "Medical Deer" APP, health insurance, etc., the company also in the pharmaceutical supply chain capabilities such as pharmaceutical warehousing and logistics, as well as pharmaceutical self-operated business, technology research and development continued investment, etc.

The bank expects Alibaba Health to announce its results for the first half of fiscal 2022 in late November, estimating that sales revenue will grow by about 30% during the second half of the fiscal year, and with more promotional activities in the second half of fiscal year, it is expected that revenue growth in the second half of fiscal 2022 will be higher, but it is expected to record losses or losses widening at the same time.

This article originated from Grand Gateway