香港交易及結算所有限公司及香港聯合交易所有限公司（「香港聯交所」）對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任 何損失承擔任何責任。 JD Health International Inc. 京東健康股份有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6618（港幣櫃台）及86618（人民幣櫃台）） 截 至 2024 年 1 2 月 3 1 日止年度的年度業績公告 京东健康股份有限公司（「本公司」或「京東健康」）董事（「董事」）會（「董事會」）欣然宣佈本 公司及其子公司與關聯併表實體（統稱「本集團」）截至2024年12月31日止年度（「報告期」） 的經審計合併業績。該等年度業績已經本公司審計委員會（「審計委員會」）審閱。 於本公告中，「我們」指本公司（定義見上文），倘文義另有所指，指本集團（定義見上 文）。此外，「京東集團」指JD.com, Inc.（納斯達克代碼：JD；香港聯交所代號：9618（港 幣櫃台）及89618（人民幣櫃台））及其子公司，包括京东物流股份有限公司（「京東物流」， 香港聯交所代號：261 ...

不构成任何投资建议即使做出了任何投资决策与国海证券、国海证券员工或者官邻机构无关本次会议只是转发国海证券已发布研究报告的部分观点仅反映国海证券研究人员于发布完整报告当日的判断相关内容请以研究所已公开发布报告为止 会议严禁录音或转发任何人不得对本次会议的任何内容进行发布复制编辑改编传载播放展示或以其他任何方式非法使用本次会议的部分或者全部内容否则将承担相应的法律责任国海证券就此保留一切法律权利在这个情况下国海证券及其员工对使用本次会议信息或内容所引发的任何直接或间接损失概不负责市场有风险投资时谨慎 各位领导大家晚上好我是国海海外分析师罗安琪那今天我给各位领导汇报一下京东健康的这篇深度报告首先从整体的这个互联网医疗行业去看其实现在药品和这个非药品的这个整个线上化率还是处于一个比较低的一个水平那其中药品 R4年预计也才14左右的一个线上化渗透率那相比像营养保健和医疗器械40到50的一个渗透率还有比较大的一个向上渗透的一个空间那中央健康它其实是凭借自营的一个供应链能力以及第三方商家的一个生态建设去建立一个比较稳固的业务优势尤其是近期整体这个线上医保支付接入的一个政策也是为公司带来比较多的一个直接利好那今天报告我们先从 ...

Investment Rating - The report maintains a "Buy" rating for JD Health, with a target price not specified [4]. Core Viewpoints - JD Health has entered a strategic partnership with China Resources Sanjiu, aiming to set a benchmark in the pharmaceutical retail industry through comprehensive collaboration in areas such as digital marketing and corporate social responsibility [1]. - The company has demonstrated robust growth, with Q3 2024 revenue reaching 13.302 billion yuan, a year-on-year increase of 14.8%, and operating profit soaring by 216.0% to 552 million yuan [2]. - The integration of online medical insurance services is expected to enhance market share, with JD Health already providing online insurance payment services in 12 cities, covering over 1 billion people [2]. - During the Double Eleven shopping festival, JD Health saw significant growth in various health-related product categories, with a 140% increase in sales for products targeting the elderly [3]. - The company has set ambitious sales growth targets in collaboration with several health brands, aiming for a 300% increase over the next three years [3]. Summary by Sections Strategic Partnership - JD Health and China Resources Sanjiu have signed a strategic cooperation agreement to enhance pharmaceutical retail capabilities and drive high-quality industry development [1]. Financial Performance - For Q3 2024, JD Health reported revenues of 13.302 billion yuan, a 14.8% increase year-on-year, and an operating profit of 552 million yuan, reflecting a 216.0% growth [2]. Market Expansion - The company has expanded its online medical insurance services to 12 cities, with nearly 2000 retail pharmacies connected, potentially increasing user penetration [2]. Product Growth - JD Health experienced a significant increase in sales during the Double Eleven event, with a 7.2-fold increase in order volume and nearly tripling transaction value [3]. Strategic Goals - The company aims for a 300% sales increase in collaboration with various health brands over the next three years, reflecting a trend towards diversified health consumption [3].

Investment Rating - Maintain OUTPERFORM rating with a target price of HK$41.49 [1][2] - Current price is HK$27.30, indicating a significant upside potential [2] Core Views - Steady revenue growth in 24Q3 with revenue reaching CNY 13.30 billion (+14.8%) and net profit of CNY 930 million (+212.2%) [7] - Adjusted net profit margin improved to 10.0% (+1.8 percentage points) in 24Q3 [7] - For the first three quarters of 2024, revenue grew by 7.6% to CNY 41.65 billion, with net profit increasing by 59.4% to CNY 2.97 billion [8] - The company is expanding its online medical insurance settlement services, covering 12 cities and connecting with 2,000 designated retail pharmacies [8] Financial Performance - Revenue for 2024E and 2025E is projected to be CNY 57.40 billion and CNY 64.00 billion, with year-on-year growth rates of 7.2% and 11.5% respectively [9] - Adjusted net profit for 2024E and 2025E is expected to be CNY 4.34 billion and CNY 4.71 billion, with growth rates of 5.0% and 8.6% respectively [9] - Gross profit margin is forecasted to increase from 22.2% in 2023A to 24.0% in 2025E [6] Valuation - DCF valuation estimates the company's equity value at HKD 132.31 billion, corresponding to a share price of HKD 41.49 per share [9] - The valuation is based on a WACC of 8.4% and a perpetual growth rate of 2.0% [9] Operational Highlights - The company has launched over 100 at-home testing services and 27 home care services, covering 14 cities including Beijing, Shanghai, Guangzhou, and Shenzhen [8] - The company is benefiting from government subsidies for elderly-friendly products, which partially offset the impact of stricter regulations on certain medical devices [9] Market Performance - The stock has shown significant volatility over the past year, with a 12-month absolute return of -30.5% [4] - Relative to the MSCI China index, the stock underperformed by 38.4% over the past 12 months [4]

Investment Rating - The investment rating for JD Health (06618.HK) is maintained at "Buy" with a target price of 28.6 HKD [1]. Core Views - JD Health reported a revenue of 13.302 billion HKD for Q3 2024, representing a year-on-year growth of 14.8% from 11.585 billion HKD [1]. - The operating profit for Q3 2024 reached 552 million HKD, a significant increase of 216.0% year-on-year, with a Non-IFRS operating profit of 862 million HKD, up 15.7% [1]. - The company is expanding its online medical insurance services, having launched online payment services in 10 cities, and has connected nearly 2,000 retail pharmacies, covering over 100 million people [1]. Summary by Sections Financial Performance - For Q3 2024, JD Health achieved a revenue of 13.302 billion HKD, a 14.8% increase year-on-year, and an operating profit of 552 million HKD, which is a 216.0% increase year-on-year, resulting in an operating profit margin of 4.1%, up 2.6 percentage points [1]. Operational Developments - The company has introduced innovative service models and has launched online medical insurance payment services in 12 cities as of September 30, 2024, with a total of nearly 2,000 pharmacies connected [1]. - JD Health has also enhanced its online medical services by launching over 100 home testing services and 27 home care services across 14 cities, improving the one-stop service experience [1]. Market Position and Strategy - The company is expected to continue increasing its market share as consumer health awareness rises and online medical insurance services expand [1]. - During the Double Eleven shopping festival, JD Health saw significant growth in various health product categories, with a 140% year-on-year increase in sales for products targeting the elderly [1]. - Strategic partnerships with brands aim for a 300% increase in sales over the next three years, indicating a focus on diversifying health consumption [1]. Investment Outlook - The revenue forecasts for 2024-2026 have been adjusted to 58.5 billion, 64.7 billion, and 71.8 billion HKD respectively, with net profit estimates of 4.6 billion, 5.0 billion, and 6.1 billion HKD [1]. - The long-term outlook remains positive due to the company's strengthening position as a self-operated pharmaceutical e-commerce platform and its leading supply chain capabilities [1].

Investment Rating - The report maintains a **Buy** rating for JD Health with a target price of **HKD 33.00** [5] Core Views - JD Health's revenue growth is expected to remain moderate due to weak consumer sentiment, with 2H24 revenue growth projected at **10.2% YoY** and adjusted net profit at **RMB 1.67 billion**, a slight decline of **1.7% YoY** [3] - The report revised JD Health's revenue forecasts for 2024/2025/2026 to **RMB 57.5/62.2/66.2 billion** (previously RMB 57.8/62.6/66.7 billion) and non-IFRS net profit forecasts to **RMB 4.25/4.80/5.22 billion** (previously RMB 4.43/5.02/5.71 billion) [2] - The valuation method was adjusted to relative valuation, with a target non-IFRS PE of **20x for 2025**, higher than the peer average of **14.0x**, reflecting JD Health's market share gains in the pharmaceutical market [2] Revenue and Profit Forecasts - JD Health's 3Q24 revenue is expected to grow **12.0% YoY** to **RMB 12.98 billion**, slowing from **14.6% YoY** in 2Q24 [3] - The company's gross margin is expected to improve to **23.0/23.5/23.8%** for 2024/2025/2026, driven by operational leverage and higher service revenue contribution [8] - Non-IFRS net profit for 2024/2025/2026 is revised down by **-3.9/-4.4/-8.6%** to **RMB 4.25/4.80/5.22 billion**, mainly due to lower interest income expectations in a rate-cutting environment [8] Industry and Policy Drivers - JD Health's future valuation upside is driven by **consumer sentiment recovery** and **policy support**, such as the expansion of online medical insurance payment coverage in regions like Beijing and Guangdong [4] - As of September 24, the number of pharmacies covered by online medical insurance payments in Beijing increased to **490**, up from **350** in 1H24 [4] - Guangdong has expanded online medical insurance payment coverage to **1,300 retail pharmacies** across nine cities, with similar expansions in Yunnan and Sichuan [4] Financial Metrics - JD Health's revenue for 2024E/2025E/2026E is projected at **RMB 57.5/62.2/66.2 billion**, with YoY growth of **7.4/8.2/6.5%** [7] - Net profit attributable to shareholders is expected to grow **46.5/14.5/9.7%** to **RMB 3.14/3.59/3.94 billion** for 2024E/2025E/2026E [7] - ROE is forecasted to improve to **6.2/6.6/6.8%** for 2024E/2025E/2026E, while PE ratios are expected to decline to **25.3/22.2/20.4x** [7]

Financial Performance - JD Health's revenue for the first half of 2024 reached RMB 28.3 billion, a year-on-year increase of 4.6%[6] - JD Health's revenue increased by 4.6% to RMB 28.3 billion in the first half of 2024 compared to RMB 27.1 billion in the same period in 2023[17] - Revenue for the six months ended June 30, 2024, reached RMB 28,343,961 thousand, a 4.5% increase compared to RMB 27,110,336 thousand in the same period of 2023[80] - Total revenue for H1 2024 reached RMB 28,343,961 thousand, a 4.6% increase compared to RMB 27,110,336 thousand in H1 2023[92] - Gross profit increased to RMB 6,699,943 thousand in H1 2024, up 8.0% from RMB 6,203,000 thousand in H1 2023[80] - The company's gross profit margin rose to 23.6% in H1 2024 from 22.9% in H1 2023, driven by changes in revenue mix[19] - Net profit for the first half of 2024 was RMB 2,034.4 million, up from RMB 1,562.0 million in the same period last year[26] - Net profit attributable to the company's owners rose to RMB 2,037,182 thousand in H1 2024, a 30.5% increase from RMB 1,561,358 thousand in H1 2023[80] - Basic earnings per share grew to RMB 0.65 in H1 2024, up from RMB 0.50 in H1 2023[80] - Non-IFRS operating profit for the first half of 2024 was RMB 1,584.6 million, compared to RMB 1,681.5 million in the first half of 2023[28] - Total comprehensive income for the period reached RMB 2,223,586 thousand in H1 2024, compared to RMB 3,115,121 thousand in H1 2023[81] - Total comprehensive income for the first half of 2024 was RMB 2,226,390 thousand, compared to RMB 3,114,487 thousand in the same period of 2023[84] - Revenue from pharmaceutical and health product sales increased to RMB 23,909,769 thousand in H1 2024, up 3.2% from RMB 23,167,780 thousand in H1 2023[92] - Service revenue, including platform and advertising services, grew to RMB 4,434,192 thousand in H1 2024, a 12.5% increase from RMB 3,942,556 thousand in H1 2023[92] - Cost of goods sold increased to RMB 21,707,641 thousand in H1 2024, a 5.1% rise from RMB 20,661,015 thousand in H1 2023[95] - Logistics and warehousing expenses grew to RMB 2,031,921 thousand in H1 2024, up 19.7% from RMB 1,697,436 thousand in H1 2023[95] - Employee benefits expenses decreased to RMB 1,158,634 thousand in H1 2024, down 10.6% from RMB 1,295,313 thousand in H1 2023[95] - Net profit attributable to owners of the company increased to RMB 2,037,182 thousand in H1 2024, up 30.5% from RMB 1,561,358 thousand in H1 2023[97] - Basic earnings per share rose to RMB 0.65 in H1 2024, a 30% increase from RMB 0.50 in H1 2023[97] User and Merchant Growth - The company's annual active users reached 181 million as of June 30, 2024, with daily online consultations exceeding 480,000 in the first half of the year[6] - JD Health's platform hosted 80,000 merchants as of June 30, 2024, reflecting rapid growth in new and active third-party merchants[8] - The company's internet hospital handled over 480,000 daily online consultations as of June 30, 2024, with a multi-department consultation rate exceeding 20%[12] Product and Service Expansion - The company launched multiple new specialty drugs, including 0.01% atropine sulfate eye drops and Alzheimer's targeted drugs, during the reporting period[8] - JD Health signed strategic cooperation agreements with over ten medical device brands to explore growth potential in new product launches and marketing[8] - The company upgraded its elderly care services, offering over 30,000 brands and thousands of subcategories of senior-friendly products[8] - JD Health introduced innovative user service benefits, such as free replacement for expired products and 365-day replacement guarantees for medical devices[9] - The company's online nutritionist service team, consisting of nearly 1,000 professionals, achieved a 98% user satisfaction rate with over 95% of queries responded to within 30 seconds[9] - JD Health expanded its offline presence with the opening of two hearing centers, integrating online and offline services[8] - The company enhanced its supply chain capabilities, including cold chain delivery services, to improve user experience and cross-category consumption[8] - JD Health's "Jingdong Medicine Delivery" service achieved an average delivery time of 28 minutes, with the fastest being 9 minutes, covering over 490 cities and 150,000 partner pharmacies[10] - The company's skin specialty center established 4 departments and 49 expert studios, serving over 15 million patients[12] - The company launched a pilot program for medical insurance individual account payments in Beijing, with over 350 designated retail pharmacies connected to the platform[10] - JD Health's medical AI model "Jingyi Qianxun" was selected as a typical case of innovative technology application at CHIMA 2024[13] - The company partnered with Shandong Energy Development Service Group to establish 8 health stations equipped with smart medical devices for remote mining area employees[14] Expenses and Costs - Fulfillment expenses increased by 14.4% to RMB 2.9 billion in H1 2024, accounting for 10.4% of revenue, up from 9.5% in H1 2023[20] - Sales and marketing expenses increased by 17.5% from RMB 1.2 billion in the first half of 2023 to RMB 1.4 billion in the first half of 2024, accounting for 5.0% of revenue, up from 4.4% in the same period last year[21] - R&D expenses increased by 4.6% from RMB 616.9 million in the first half of 2023 to RMB 645.0 million in the first half of 2024, maintaining a stable 2.3% of revenue[22] - General and administrative expenses decreased by 21.9% from RMB 876.8 million in the first half of 2023 to RMB 685.1 million in the first half of 2024, accounting for 2.4% of revenue, down from 3.2%[23] - Income tax expenses increased by 50.4% from RMB 269.2 million in the first half of 2023 to RMB 405.0 million in the first half of 2024, mainly due to net growth in deferred tax[25] - Research and development expenses amounted to RMB 645,015 thousand in H1 2024, a 4.6% increase from RMB 616,863 thousand in H1 2023[80] - Financial income rose to RMB 989,512 thousand in H1 2024, a 5.7% increase from RMB 936,455 thousand in H1 2023[80] - Interest received in the first half of 2024 was RMB 916,394 thousand, nearly double the RMB 469,818 thousand received in the same period of 2023[86] Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 8.8 billion as of June 30, 2024, from RMB 15.0 billion as of December 31, 2023[30] - Net cash generated from operating activities was RMB 2,230.2 million in the first half of 2024, compared to RMB 368.1 million in the same period last year[31] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 2.2 billion, primarily due to a profit of RMB 2.0 billion, adjusted for non-cash and non-operating items of RMB 0.4 billion and working capital adjustments[32] - Net cash used in investing activities for the six months ended June 30, 2024, was RMB 8.4 billion, mainly due to RMB 5.7 billion for purchasing time deposits and RMB 2.6 billion for financial assets measured at fair value[33] - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 21.8 million, primarily due to lease principal payments of RMB 17.8 million[34] - Operating cash flow for the first half of 2024 reached RMB 2,230,154 thousand, a significant increase from RMB 368,079 thousand in the same period of 2023[86] - Net cash used in investing activities for the first half of 2024 was RMB 8,372,841 thousand, compared to RMB 7,240,181 thousand in the same period of 2023[86] - The company's cash and cash equivalents decreased by RMB 6,164,480 thousand in the first half of 2024, compared to a decrease of RMB 6,890,623 thousand in the same period of 2023[86] Equity and Shareholder Information - The company had no outstanding borrowings as of June 30, 2024, and thus no capital-to-debt ratio was presented[35] - The company terminated the acquisition of the remaining 51% equity in Tangshan Hongci Medical Management Co., Ltd., due to unmet conditions[36] - The number of full-time employees as of June 30, 2024, was 3,177, compared to 2,751 as of June 30, 2023[37] - Total employee compensation and benefits, including share-based payments, for the six months ended June 30, 2024, was RMB 1.2 billion, compared to RMB 1.3 billion for the same period in 2023[38] - The company has no significant contingent liabilities or guarantees as of June 30, 2024[40] - Liu Qiangdong holds a 68.50% equity interest in the company as of June 30, 2024[42] - JD Jiankang holds 2,149,253,732 shares, and JD.com fully owns JD Jiankang[43] - As of June 30, 2024, Mr. Liu Qiangdong holds approximately 71.5% of the voting rights in JD.com through shares exercisable at the shareholders' meeting[43] - Mr. Liu Qiangdong has the right to acquire up to 26,521,259 shares through the exercise of pre-IPO employee stock options, subject to conditions[43] - Mr. Liu Qiangdong beneficially owns 343,005,330 shares, representing 11.6% of the total shares and 71.5% of the total voting rights[45] - Max Smart Limited, a BVI company beneficially owned by Mr. Liu Qiangdong, holds 305,630,780 Class B ordinary shares[46] - Fortune Rising Holdings Limited holds 17,442,072 Class B ordinary shares, with Mr. Liu Qiangdong as the sole shareholder and director[46] - As of June 30, 2024, JD.com has 2,934,703,449 ordinary shares issued and outstanding[47] - Mr. Liu Qiangdong holds a 64.80% beneficial ownership in JD Logistics through 4,291,457,805 shares[48] - Mr. Liu Qiangdong holds a 100.00% beneficial ownership in China Logistics Property through 3,474,283,058 shares[48] - Mr. Jin Enlin has the right to acquire up to 666 shares of JD.com through restricted stock units under the JD.com equity incentive plan[48] - JD.com holds 4,192,271,100 shares of JD Logistics, representing 100% ownership through Jingdong Technology Group Corporation[50] - Liu Qiangdong holds approximately 71.5% of the voting rights in JD.com as of June 30, 2024[50] - JD.com owns 74.96% of JD Property, which directly holds 3,474,283,058 shares of China Logistics Assets[50] - JD Jiankang holds 2,149,253,732 shares, representing 67.39% of the total issued shares of 3,189,465,111 as of June 30, 2024[52] - The company has three equity incentive plans, with 4,421,362 new shares potentially issued under the post-IPO option and share award plans, representing approximately 0.14% of the weighted average issued share capital[53] - Under the pre-IPO employee equity incentive plan, 30,391,357 options remained unexercised as of June 30, 2024[55] - The maximum number of shares that can be issued under the post-IPO option plan is 312,708,211, not exceeding 10% of the shares issued at the listing date[57] - The overall cap for shares that can be issued under all option plans is 30% of the issued shares at any time[57] - No options have been granted, exercised, canceled, or lapsed under the post-IPO option plan as of June 30, 2024[57] - The post-IPO share award plan was adopted on November 23, 2020, with further details available in the prospectus[58] - The maximum number of shares available for issuance under the post-IPO share incentive plan is 312,708,211 shares, representing 10% of the company's issued share capital[60] - As of June 30, 2024, 284,908,211 new shares are available for issuance under the post-IPO share incentive plan, representing approximately 8.93% of the company's issued share capital[60] - The total number of shares available for granting under the post-IPO share incentive plan as of June 30, 2024 is 250,089,110 shares[59] - During the reporting period, 4,941,036 reward shares were granted to eligible participants under the post-IPO share incentive plan[59] - As of June 30, 2024, the total number of unvested reward shares to be settled by new shares under the post-IPO share incentive plan is 33,368,892 shares[61] - The fair value of the reward shares granted during the reporting period was determined based on the market value of the shares on the respective grant dates[62] - The company granted 226,000 reward shares to an executive director on April 1, 2024, with a market price of HK$27.70 per share on the grant date[63] - As of June 30, 2024, the total number of unvested reward shares to be settled by existing shares under the post-IPO share incentive plan is 6,823 shares[63] - The total net proceeds from the global offering, after the over-allotment option was fully exercised, amounted to approximately RMB 25.7 billion, which will be used for the purposes disclosed in the prospectus[66] - As of June 30, 2024, the company had utilized RMB 3,717 million of the net proceeds for business expansion, including the development of retail pharmacy business and online medical health services, user growth and engagement, and brand enhancement[67] - The company had RMB 7,408 million of net proceeds remaining unused as of June 30, 2024, with RMB 2,911 million allocated for potential investments, acquisitions, or strategic alliances, and RMB 579 million for working capital and general corporate purposes[67] - The company did not purchase, sell, or redeem any of its listed securities on the Hong Kong Stock Exchange during the six months ended June 30, 2024, and did not hold any treasury shares as of that date[68] - The company has maintained strict corporate governance practices and has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[69] - The Audit Committee, consisting of three members, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, and discussed accounting policies, practices, and internal controls with senior management and the company's auditor[71] - No interim dividend was recommended by the Board for the six months ended June 30, 2024[72] - Professor Liao Jiajie was appointed as an independent non-executive director, effective from August 15, 2024[75] - No other significant events affecting the company occurred between June 30, 2024, and the date of this report[76] Assets and Liabilities - Total assets increased to RMB 67,218,782 thousand as of June 30, 2024, compared to RMB 64,288,300 thousand as of December 31, 2023[82] - Inventory grew to RMB 5,680,513 thousand as of June 30, 2024, a 11.7% increase from RMB 5,084,574 thousand as of December 31, 2023[82] - Trade payables increased to RMB 10,982,183 thousand as of June 30, 2024, up 13.7% from RMB 9,660,450 thousand as of December 31, 2023[83] - Contract liabilities increased to RMB 468,224 thousand as of June 30, 2024, up 15.4% from RMB 405,604 thousand as of December 31, 2023[93] - Non-current financial assets increased to RMB 8,201,457 thousand as of June 30, 2024, compared to RMB 12,204,005 thousand as of December 31, 2023, with a significant decrease in fixed-term deposits from RMB 8,522,972 thousand to RMB 3,691,198 thousand[100] - The yield on amortized cost financial products held by the company ranged from 5.48% to 6.12% annually as of June 30, 2024, slightly higher than the range

Investment Rating - The report maintains a "Buy" rating for JD Health, with a target price of HKD 35.34 per share, indicating a potential upside from the current price of HKD 21.40 [3]. Core Views - JD Health reported a strong performance in H1 2024, achieving revenue of RMB 28.344 billion, a year-on-year increase of 4.6%. The pharmaceutical and health product sales segment generated RMB 23.910 billion, up 3.2%, while platform, advertising, and other services saw revenue of RMB 4.434 billion, growing by 12.5% [2][3]. - The company’s net profit attributable to shareholders reached RMB 2.037 billion, reflecting a significant year-on-year growth of 30.5%. The Non-IFRS net profit was RMB 2.644 billion, up 8.5%, with a Non-IFRS net profit margin improvement of 0.3 percentage points to 9.3% [2]. - JD Health is actively attracting third-party merchants, which has positively impacted its 3P business and advertising revenue. The number of platform merchants has increased to 80,000, and the JD Medicine delivery service now covers over 490 cities [2][3]. Financial Summary - Revenue projections for 2024 and 2025 are estimated at RMB 57.380 billion and RMB 62.651 billion, respectively, with expected year-on-year growth rates of 7.2% and 9.2% [5]. - The company’s EBITDA is forecasted to grow significantly, reaching RMB 2.245 billion in 2024 and RMB 2.977 billion in 2025 [5]. - The net profit attributable to shareholders is projected to be RMB 2.783 billion in 2024 and RMB 3.609 billion in 2025, with growth rates of 29.9% and 29.7% respectively [5].

Investment Rating - The investment rating for JD Health (06618.HK) is "Buy" with a target price set at HKD 22.05, maintaining the rating [6]. Core Insights - JD Health reported a revenue of CNY 28.344 billion for the first half of 2024, representing a year-on-year growth of 4.6% compared to CNY 27.1 billion in the same period last year [1]. - The company's self-operated product revenue reached CNY 23.91 billion, growing by 3.2% year-on-year, while service revenue increased by 12.5% to CNY 4.43 billion [1][2]. - The gross profit margin improved by 0.7 percentage points to 23.6%, with a net profit of CNY 2.03 billion, marking a 30.2% increase year-on-year [1][2]. - The number of active users reached 181 million, with a net increase of 12 million users compared to the previous year [1][2]. Summary by Sections Financial Performance - For the first half of 2024, JD Health achieved a gross profit of CNY 6.7 billion, an increase of 8% year-on-year, with a net profit margin of 9.3% [2]. - The adjusted Non-IFRS net profit was CNY 2.64 billion, up 8.5% from CNY 2.44 billion in the same period last year [1][2]. Business Model and Growth Drivers - The company has established a mature operational model integrating self-operated, online platform, and instant retail services, which is expected to enhance user penetration and purchase frequency [2][3]. - The platform, advertising, and other services contributed CNY 4.43 billion in revenue, reflecting a 12.5% year-on-year growth, with over 80,000 third-party merchants onboard [2]. Market Expansion - JD Health has initiated online medical insurance drug purchasing services in multiple cities, which is anticipated to drive new traffic growth for the platform [3]. - The instant retail service "JD Buy Medicine" achieved an average delivery time of 28 minutes, covering over 490 cities and partnering with more than 150,000 pharmacies [3].

Investment Rating - The report maintains an "Outperform" rating for JD Health International (6618 HK) with a target price of HKD 41.49, reflecting a significant upside from the current price of HKD 23.15 [3][7]. Core Views - JD Health has demonstrated healthy revenue growth driven by increases in platform, advertising, and other service revenues, achieving CNY 28.34 billion in the first half of 2024, a 4.6% increase year-on-year [12][13]. - The integration of online medical insurance is expected to enhance online traffic and penetration rates, with over 350 designated pharmacies in Beijing connected to the JD platform as of the first half of 2024 [15][16]. - The company has established a closed loop of testing, consultation, and medication purchasing services, which is anticipated to drive innovation in pharmaceutical retail [16]. Financial Performance Summary - Revenue for 2024 is projected at CNY 57.4 billion, representing a year-on-year growth of 7.2%, while adjusted net profit is expected to reach CNY 4.34 billion, reflecting a growth of 4.9% [17][18]. - The gross margin for the first half of 2024 was reported at 23.6%, an increase of 0.8 percentage points, with net profit reaching CNY 2.03 billion, a 30.2% increase [14][18]. - The number of active users reached 180 million, a 7.2% increase, and the number of platform merchants grew to 80,000, a 122.2% increase [12][13]. Valuation and Forecast - The DCF valuation estimates the company's equity value at CNY 121.73 billion, corresponding to a share price of HKD 41.49, based on a WACC of 8.4% and a perpetual growth rate of 2.0% [17][18]. - The revenue forecast for 2025 is CNY 64.0 billion, with an expected growth rate of 11.5% [17].