<Research>HTSC Raises JD HEALTH's Target Price to HKD77.4 with Increased Earnings Projections
JD HEALTH Revenue Growth: Huatai Securities predicts JD HEALTH's 4Q25 revenue will grow by 22.7% YoY, driven by increased online penetration in pharmaceuticals and supply chain advantages.
Profit Forecasts: The company is expected to achieve a non-IFRS operating profit of RMB260 million in 4Q25, with a projected revenue increase of 25% YoY to RMB72.7 billion for the entire year of 2025.
Target Price Adjustment: Huatai Securities has raised its target price for JD HEALTH from HKD68.3 to HKD77.4 while maintaining a Buy rating, reflecting an increase in non-IFRS net profit forecasts for 2025-27.
Seasonal Factors: The report notes that seasonal misalignment of the flu may provide short-term revenue support for JD HEALTH in the last quarter.
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HSBC Research: Online Pharmacy Market Share Grows; JD HEALTH Target Price Increased to $77.5
JD Health and Ali Health Performance: Both JD Health and Ali Health reported strong revenue growth last year, with pharmaceutical sales increasing by 20-30%, significantly outpacing the national market growth of only 2%.
Market Share Dynamics: The growth reflects a continuous gain in market share by online platforms over traditional hospital channels, despite a decrease in the number of physical pharmacies.
Broker Ratings and Forecasts: CLSA maintained an Outperform rating for JD Health and raised earnings forecasts, while also increasing target prices for both JD Health and Ali Health, indicating potential upside.
Valuation Insights: HSBC Global Research noted that Ali Health's current valuation has largely accounted for recent AI developments, suggesting limited room for further upside.
JD HEALTH Partners with iMEDWAY Tech to Develop AI-Driven Supply Chain Solution
Strategic Agreement: iMEDWAY Technology has signed a cooperation agreement with Beijing Jingdong Jiankang, a subsidiary of JD HEALTH, focusing on hospital digital upgrades and intelligent construction.
AI and Supply Chain Integration: The partnership aims to develop a new "AI+Supply Chain" solution that leverages both companies' strengths in medical informatization and pharmaceutical supply chains to innovate medical service models.
CLSA Maintains Outperform Rating for JD HEALTH (06618.HK) and Increases Earnings Projections
Growth Expectations: CLSA anticipates JD HEALTH will sustain growth in the second half of 2025, with a projected 24.5% year-on-year revenue increase to RMB37.1 billion, driven by strong sales during Double 11 and a rise in flu infections in December.
Profit Forecasts: The broker expects adjusted EBIT to potentially double year-on-year to RMB2.1 billion, with a 16% revenue growth forecast for 2026, supported by improved gross margins and operational efficiency.
Revised Profit Estimates: CLSA has raised its adjusted net profit forecasts for JD HEALTH by 1% for FY2026 and 2% for FY2027, reflecting a recovery in drug sales and profit growth potential.
Rating and Target Price: The broker maintains an Outperform rating for JD HEALTH and keeps its target price at $71, indicating confidence in the company's future performance.
JD HEALTH Implements AI Technology in Health Check-Up Center, Increasing Report Production Efficiency by 135%
JD Health Team Composition: JD Health has established a team of doctors for its Check-Up Center, with all members holding intermediate or higher professional titles, and 22% being chief doctors from key departments.
AI Technology Implementation: The company plans to integrate AI technology into its health check-up services, which is expected to enhance report production efficiency by 135% and reduce the average time for users to receive health reports by 3.5 days.
HSI Declines 26 Points at Midday, While BIDU Rises Over 4% and ASMPT Jumps 6%
Market Performance: The HSI fell 0.1% to 26,558, while the HSCEI and HSTECH also experienced declines of 0.3% and 0.4%, respectively, with a total half-day turnover of $131.628 billion.
Chip Stocks Surge: External memory chip stocks saw significant gains, with Disco hitting the day limit and ASMPT rising 6%, while other chip stocks like HUA HONG SEMI and INNOSCIENCE also posted positive performances.
Tech Stock Movements: KINGDEE INT'L surged 3.2% on profit expectations, while BIDU-SW rose 4.2% after positive forecasts from JPMorgan; however, major players like TENCENT and MEITUAN-W saw slight declines.
Economic Indicators: China's unemployment rate remained stable at 5.1%, and the Loan Prime Rate for January 2026 was unchanged at 3.00%, aligning with forecasts.
JD Health and Peak Pharmaceutical Collaborate on Comprehensive Health Management Solutions
Collaboration Announcement: JD Health has partnered with Beijing Peak Biology Pharmaceuticals to develop a comprehensive health management solution that encompasses screening, diagnosis, treatment, medication, follow-up, and protection.
Service Enhancement Goals: The collaboration aims to improve health service delivery by integrating digital technology and industrial resources, creating a closed-loop service that spans preventive intervention to rehabilitation management.
HSBC Research: Online Pharmacy Market Share Grows; JD HEALTH Target Price Increased to $77.5
JD Health and Ali Health Performance: Both JD Health and Ali Health reported strong revenue growth last year, with pharmaceutical sales increasing by 20-30%, significantly outpacing the national market growth of only 2%.
Market Share Dynamics: The growth reflects a continuous gain in market share by online platforms over traditional hospital channels, despite a decrease in the number of physical pharmacies.
Broker Ratings and Forecasts: CLSA maintained an Outperform rating for JD Health and raised earnings forecasts, while also increasing target prices for both JD Health and Ali Health, indicating potential upside.
Valuation Insights: HSBC Global Research noted that Ali Health's current valuation has largely accounted for recent AI developments, suggesting limited room for further upside.
JD HEALTH Partners with iMEDWAY Tech to Develop AI-Driven Supply Chain Solution
Strategic Agreement: iMEDWAY Technology has signed a cooperation agreement with Beijing Jingdong Jiankang, a subsidiary of JD HEALTH, focusing on hospital digital upgrades and intelligent construction.
AI and Supply Chain Integration: The partnership aims to develop a new "AI+Supply Chain" solution that leverages both companies' strengths in medical informatization and pharmaceutical supply chains to innovate medical service models.
CLSA Maintains Outperform Rating for JD HEALTH (06618.HK) and Increases Earnings Projections
Growth Expectations: CLSA anticipates JD HEALTH will sustain growth in the second half of 2025, with a projected 24.5% year-on-year revenue increase to RMB37.1 billion, driven by strong sales during Double 11 and a rise in flu infections in December.
Profit Forecasts: The broker expects adjusted EBIT to potentially double year-on-year to RMB2.1 billion, with a 16% revenue growth forecast for 2026, supported by improved gross margins and operational efficiency.
Revised Profit Estimates: CLSA has raised its adjusted net profit forecasts for JD HEALTH by 1% for FY2026 and 2% for FY2027, reflecting a recovery in drug sales and profit growth potential.
Rating and Target Price: The broker maintains an Outperform rating for JD HEALTH and keeps its target price at $71, indicating confidence in the company's future performance.
JD HEALTH Implements AI Technology in Health Check-Up Center, Increasing Report Production Efficiency by 135%
JD Health Team Composition: JD Health has established a team of doctors for its Check-Up Center, with all members holding intermediate or higher professional titles, and 22% being chief doctors from key departments.
AI Technology Implementation: The company plans to integrate AI technology into its health check-up services, which is expected to enhance report production efficiency by 135% and reduce the average time for users to receive health reports by 3.5 days.
HSI Declines 26 Points at Midday, While BIDU Rises Over 4% and ASMPT Jumps 6%
Market Performance: The HSI fell 0.1% to 26,558, while the HSCEI and HSTECH also experienced declines of 0.3% and 0.4%, respectively, with a total half-day turnover of $131.628 billion.
Chip Stocks Surge: External memory chip stocks saw significant gains, with Disco hitting the day limit and ASMPT rising 6%, while other chip stocks like HUA HONG SEMI and INNOSCIENCE also posted positive performances.
Tech Stock Movements: KINGDEE INT'L surged 3.2% on profit expectations, while BIDU-SW rose 4.2% after positive forecasts from JPMorgan; however, major players like TENCENT and MEITUAN-W saw slight declines.
Economic Indicators: China's unemployment rate remained stable at 5.1%, and the Loan Prime Rate for January 2026 was unchanged at 3.00%, aligning with forecasts.
JD Health and Peak Pharmaceutical Collaborate on Comprehensive Health Management Solutions
Collaboration Announcement: JD Health has partnered with Beijing Peak Biology Pharmaceuticals to develop a comprehensive health management solution that encompasses screening, diagnosis, treatment, medication, follow-up, and protection.
Service Enhancement Goals: The collaboration aims to improve health service delivery by integrating digital technology and industrial resources, creating a closed-loop service that spans preventive intervention to rehabilitation management.
