M Stanley Raises JD HEALTH (06618.HK) Price Target to $52.5, Maintains Equalweight Rating

The analyst rating from Huatai Securities for JD HEALTH is based on several key factors: 1. Revenue Growth: The report predicts a 22.7% year-over-year growth in 4Q25 revenue, driven by increased online penetration in the pharmaceutical category and the company's supply chain advantages. 2. Operating Profit: JD HEALTH is expected to achieve a non-IFRS operating profit of RMB260 million, indicating strong operational performance. 3. Seasonal Factors: The seasonal misalignment of the flu is anticipated to provide short-term support for revenue growth in the last quarter. 4. Long-term Projections: For the entire year of 2025, revenue is expected to increase by 25% year-over-year to RMB72.7 billion, with non-IFRS operating profit reaching RMB4.11 billion. 5. Revised Profit Forecasts: Huatai Securities has raised its non-IFRS net profit forecasts for JD HEALTH for 2025-2027 by significant percentages (11.6%/15.6%/22.4%), reflecting increased confidence in the company's financial performance. 6. Target Price Increase: The target price for JD HEALTH has been raised from HKD68.3 to HKD77.4, reinforcing a positive outlook. Overall, these factors contribute to Huatai Securities maintaining a "Buy" rating for JD HEALTH.

The analyst rating from Nomura for JD HEALTH is based on several positive expectations regarding the company's financial performance. They anticipate a 22% year-over-year increase in revenue for the fourth quarter of FY2025, driven by heightened demand for pharmaceuticals due to a surge in influenza cases. Additionally, they expect improvements in the operating profit margin and significant growth in both operating profit (72% YoY increase) and net profit (27% YoY increase). As a result of these optimistic projections, Nomura raised its earnings forecasts for FY2025 and FY2026 by 1%, maintaining a "Buy" rating and setting a target price of $80.