Core Viewpoint - HSBC is optimistic about JD Health due to strong growth in its pharmaceutical and health supplement businesses, particularly in innovative drugs, which account for approximately 30% of prescription drug sales [1][3]. Group 1: Business Growth - JD Health is leveraging innovative drugs and AI as new growth engines beyond traditional e-commerce [3]. - The report predicts that JD Health's revenue will achieve approximately 20% year-on-year growth in the second half of 2025, driven by its core businesses [3]. - The innovative drug business is highlighted as a key growth area, benefiting from the migration of online traffic due to hospital prescription outflow [3]. Group 2: AI Implementation - AI technology has significantly improved JD Health's cost efficiency and conversion rate by 10 percentage points [4]. - The company utilizes vast amounts of real user dialogue data on its platform to train its AI models, enhancing precision and efficiency [4]. - Future investments in AI are expected to be "controllable" in scale [4]. Group 3: Profitability and Costs - JD Health is actively expanding offline, planning to open 200 self-operated pharmacies within the year, which is impacting short-term profit margins [5][6]. - The adjusted net profit margin for JD Health is projected to be around 10% in the first half of 2025, but is expected to remain between 8-10% in the short term [6]. - The report forecasts a non-IFRS net profit margin of approximately 8% in Q3 2025, potentially dropping to around 6% in the second half of 2025 [6]. Group 4: Cost Control Measures - The company is implementing "stricter cost control" measures, which are expected to buffer profit margins [7]. - HSBC maintains a "buy" rating for JD Health and has raised its target price from HKD 65.00 to HKD 66.00, indicating a potential upside of 7.4% [7].

Group 1 - The Hong Kong stock market showed signs of recovery on October 15, with the Hang Seng Tech Index rising approximately 1%, driven by gains in technology and automotive stocks [1] - The Hang Seng Tech Index ETF (513180) followed the index's upward trend, with leading stocks including JD Health, Bilibili, ASMPT, Midea Group, and Alibaba [1] - The Federal Reserve's interest rate cut expectations have increased, with Chairman Powell indicating a potential end to the balance sheet reduction process in the coming months, and Governor Bowman forecasting two more rate cuts by year-end [1] Group 2 - As of October 14, the latest valuation (PETTM) of the Hang Seng Tech Index ETF (513180) was 22.64 times, which is approximately 27.36% below its historical average, indicating it remains in a relatively undervalued range [2] - The ETF's characteristics of high elasticity and growth potential suggest greater upward momentum, making it an attractive option for investors without a Hong Kong Stock Connect account to access core Chinese AI assets [2]

美银证券发表报告指，京东健康上半年业绩大幅优于预期，该行预期其下半年业绩将持续超越市场预 期。据此该行将京东健康2025全年收入增长预测从20%上修至22%，调整后营业利润增长预测从32%上 修至40%。该行预期京东健康下半年毛利率将实现按年扩张，同时下修下半年营业费用率预测，因预期 O2O门店亏损将减少，但维持年终门店总数目标不变。基于更乐观的增长前景，该行将京东健康2025至 2027年调整后净利润预测上调3%，并将现金流折现目标价从68港元上调至71港元，重申"买入"评级。 相关事件 大行评级丨美银：预计京东健康下半年业绩将持续超越市场预期 目标价上调至71港元 研报掘金丨中 金：预测京东健康第三季基本面或延续强劲增长态势 目标价上调至67.4港元 ...

中金发表研报，预测京东健康今年第三季或延续上半年表现，有望实现收入端约25%的按年增速水平。 考虑到公司持续投入全渠道体系建设，中金预计今年第三季或实现non-IFRS净利润约双位数水平按年增 速。 考虑到药品和药企合作贡献超预期，且反内卷基调下后续投入或相对可控，中金上调京东健康2025及 2026年non-IFRS(扣除非经常性损益)净利润5%及4%，至57.2亿与63.1亿元。考虑到伴随全渠道体系持续 推进，公司竞争力日趋稳固，中金上调公司11.2%目标价至67.4港元，维持"跑赢行业"评级，认为其第 三季基本面或延续强劲增长态势。 ...

Core Insights - JD Health is leveraging two main growth engines: innovative drugs and AI technology, aiming to reshape its growth narrative beyond traditional e-commerce [1] - The report from HSBC predicts a revenue growth of approximately 20% year-on-year in the second half of 2025, driven by the dual support of its core businesses [1] Innovative Drug Business - The innovative drug segment is highlighted as a key growth area, currently accounting for about 30% of JD Health's total prescription drug sales [1] - The growth rate of this segment is expected to continue increasing, primarily due to the shift of hospital prescriptions to online platforms [1] AI Technology Impact - AI technology has shown tangible results, improving cost efficiency and conversion rates by 10 percentage points [2] - The company utilizes vast amounts of real user dialogue data to train its AI models, enhancing their precision and efficiency [2] - Future investments in AI are planned to be "controllable" in scale [2] Offline Expansion and Profitability - JD Health is actively expanding offline, planning to open 200 self-operated pharmacies within the year, which is impacting short-term profit margins [3] - The adjusted net profit margin for the first half of 2025 is projected at 10%, but is expected to remain between 8-10% in the short term [3] - The report forecasts a Non-IFRS net profit margin of about 8% in Q3 2025, potentially dropping to around 6% in the second half of 2025 [3] - The company is implementing stricter cost control measures to buffer profit margins [3] Investment Rating - HSBC maintains a "buy" rating for JD Health, raising the target price from 65.00 HKD to 66.00 HKD, indicating a potential upside of 7.4% as of the report's publication date [3]

格隆汇10月14日丨美银证券发布研报称，京东健康(6618.HK)2025年上半年业绩大幅优于预期，该行预 期其下半年业绩将持续超越市场预期。据此该行将京东健康2025全年收入增长预测从20%上修至22%， 调整后营业利润增长预测从32%上修至40%。基于更乐观的增长前景，该行将京东健康2025至2027年调 整后净利润预测上调3%，并将现金流折现目标价从68港元上调至71港元，重申其评级为"买入"。 ...

美银证券发布研报称，京东健康(06618)2025年上半年业绩大幅优于预期，该行预期其下半年业绩将持 续超越市场预期。据此该行将京东健康2025全年收入增长预测从20%上修至22%，调整后营业利润增长 预测从32%上修至40%。基于更乐观的增长前景，该行将京东健康2025至2027年调整后净利润预测上调 3%，并将现金流折现目标价从68港元上调至71港元，重申其评级为"买入"。 针对第三季，美银证券上修京东健康预测，并预期公司将维持上半年的快速收入增长动能。对第四季则 保守维持原有预测，等待双十一过后获得更多能见度。该行预期京东健康下半年毛利率将实现同比扩 张。 ...

针对第三季，美银证券上修京东健康预测，并预期公司将维持上半年的快速收入增长动能。对第四季则 保守维持原有预测，等待双十一过后获得更多能见度。该行预期京东健康下半年毛利率将实现同比扩 张。 智通财经APP获悉，美银证券发布研报称，京东健康(06618)2025年上半年业绩大幅优于预期，该行预期 其下半年业绩将持续超越市场预期。据此该行将京东健康2025全年收入增长预测从20%上修至22%，调 整后营业利润增长预测从32%上修至40%。基于更乐观的增长前景，该行将京东健康2025至2027年调整 后净利润预测上调3%，并将现金流折现目标价从68港元上调至71港元，重申其评级为"买入"。 ...

Group 1 - Ctrip (TCOM.US) increased by 0.96% after announcing a long-term strategic partnership with Live Nation Asia to integrate travel and live music experiences in key Asian markets [2] - Toyota (TM.US) rose by 1.44% as it plans to launch its first mass-produced solid-state battery vehicle by 2027, aiming for advancements in range, charging speed, and performance [3] - New Energy (02688) surged over 2% due to a reasonable privatization plan, with institutions indicating potential progress in Q4 [3] - JD Health (06618) increased over 2% as Morgan Stanley noted the company's steady performance in Q3, providing upward potential for its FY25 targets [3] - XPeng Motors (09868) rose over 1% after signing an order agreement for 600 flying cars in the Middle East [3] Group 2 - Gao Xin Technology (03800) increased over 4% after announcing the completion of issuing 1.015 billion shares based on subscription and placement agreements [3] - InnoCare (02577) surged over 7% after announcing a collaboration with NVIDIA to provide a full GaN power solution for 800 VDC power architectures [3] - Hesai (HSAI.US) rose by 6.71% after announcing the production of its 1 millionth lidar unit by the end of September 2023, becoming the first company to achieve this milestone [3] - Baidu (BIDU.US) increased by 3.31% as Macquarie upgraded its investment rating from "Neutral" to "Outperform" due to Baidu's shift towards diversified revenue sources [3] - Tesla (TSLA.US) rose by 5.42% as it reportedly delivered over 240,000 vehicles in Q3 [3]

Core Viewpoint - Morgan Stanley's report indicates that JD Health (06618) continues to show robust performance in Q3, creating upward potential for its FY2025 targets, with expected revenue growth of approximately 24% year-on-year, driven by strong sales in proprietary medicines, particularly in chronic disease areas, and better-than-expected performance in nutritional products [1] Group 1: Financial Performance - Q3 revenue is expected to grow by about 24% year-on-year, supported by strong sales in proprietary medicines and nutritional products [1] - Medical device sales are anticipated to meet expectations [1] - The current forecast for FY2025 includes a revenue growth of 20%, adjusted operating profit of 3.5 billion RMB, and adjusted net profit of 5.3 billion RMB, indicating potential for upward revisions [1] Group 2: Advertising and Profitability - Advertising revenue growth is expected to continue outpacing product sales, contributing to further improvements in profit margins [1] - Operational leverage and disciplined execution are key factors in enhancing profitability [1] Group 3: Expansion and Investment - JD Health's expansion into offline business is a critical focus area, with over 50 new pharmacy stores opened in Q3 and plans to add approximately 150 more in Q4 [1] - The company has achieved partial reimbursement qualifications for OTC medicines in seven cities, up from three, which is seen as a significant step towards broader coverage in the coming years [1]