<Research>CLSA Raises JD HEALTH (06618.HK) Price Target to $71, Maintains Outperform Rating
Strong Financial Performance: JD HEALTH reported 3Q25 results that exceeded expectations, with total revenue and adjusted EBIT growing by 29% and 60% year-over-year, reaching RMB17.1 billion and RMB1.4 billion, respectively.
Pharmaceutical Sales Growth: The company experienced a robust 30% year-over-year growth in pharmaceutical sales, particularly in originator and chronic disease drugs, alongside a similar growth in health supplement sales.
Analyst Upgrades: CLSA raised its adjusted net profit forecasts for JD HEALTH for 2025 and 2026 by 11% each, citing stronger gross profit margin expansion, and increased its target price from HKD66 to HKD71 while maintaining an Outperform rating.
Market Activity: JD HEALTH's stock saw a significant increase of 7.209%, with short selling amounting to $105.77 million and a ratio of 24.322%.
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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.
JD HEALTH Partners with NHC to Launch AI-Driven Clinical Nutrition Solution
AI-Driven Solution Announcement: JD Health, in collaboration with Wenzhou Medical University and China's NHC, unveiled an AI-driven full-process management solution aimed at standardizing clinical nutrition.
Implementation Plans: The solution is ready for large-scale implementation and will be promoted to various healthcare institutions across China in the future.
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.
JD HEALTH Partners with NHC to Launch AI-Driven Clinical Nutrition Solution
AI-Driven Solution Announcement: JD Health, in collaboration with Wenzhou Medical University and China's NHC, unveiled an AI-driven full-process management solution aimed at standardizing clinical nutrition.
Implementation Plans: The solution is ready for large-scale implementation and will be promoted to various healthcare institutions across China in the future.
