Brokerage firm Nomura has maintained a positive outlook on Alibaba’s AI and cloud business while upgrading Sunway Healthcare to 'Buy' following strong second-quarter financial results. While these firms show robust operational momentum, investors continue to weigh these gains against broader economic concerns, particularly regarding China's cooling growth indicators.
In its latest research update, Nomura has highlighted a positive long-term trajectory for Alibaba Group, specifically pointing to the company’s AI and cloud business. Analysts expect Alibaba’s AI-related revenue to account for a significant portion of its cloud segment's external earnings within the coming year. The company is currently expanding its AI infrastructure globally, with new data center and service platform launches in Japan, Europe, and Malaysia. However, the brokerage also notes that the overall macroeconomic environment in China presents a challenge. Stagnant PMI indicators and weak consumer spending trends have led to a downward revision in China's quarterly GDP growth forecasts, which investors are monitoring as a potential headwind for large-cap tech stocks.
Meanwhile, Sunway Healthcare Holdings has been upgraded to a 'Buy' rating following a strong financial performance in the second quarter of 2026. The company reported revenue of RM672.9 million, a 30% increase compared to the same period last year. Net profit also saw a substantial rise of 89%, reaching RM78.2 million. This growth has been driven by higher patient volumes and improved operational efficiency, with bed occupancy rising to 73% during the quarter, up from 67% in the previous year.
For investors, the healthcare sector move is tied to Sunway’s continued capacity expansion. However, a key monitorable for the company is the upcoming transition to a Diagnosis Related Group (DRG) based reimbursement system in Malaysia, which is targeted for implementation in January 2027. This regulatory change could impact future revenue models for private healthcare providers.
Elsewhere in the market, NetEase and J&T Express also delivered robust operational results. NetEase reported a 33% year-over-year surge in operating profit, supported by margin improvements in its gaming segment. Similarly, J&T Express saw its total revenue rise by 40% in the first half of 2026, benefiting from a more rational competitive landscape in China and strong growth in Southeast Asia.
Despite the positive performance from these individual companies, the broader market remains cautious. High capital expenditure requirements for Alibaba's AI infrastructure projects create near-term pressure on group profitability, and potential export controls on AI chips remain a risk to the company's long-term expansion plans. Investors should track these regulatory and macroeconomic indicators as they may influence future sentiment across the tech and healthcare sectors.