Core Insights - JD Health's self-developed medical model "Jingyi Qianxun" is set to undergo a significant upgrade to version 2, following its full open-source release in February this year [1] - The upgraded model utilizes multimodal perception and deep retrieval technology to integrate clinical multi-source information, creating a decision support system that closely resembles real-world scenarios [1] - In the field of specialized disease treatment, "Jingyi Qianxun" 2 demonstrates breakthrough value, particularly in complex scenarios related to malignant tumors and cardiovascular diseases [1] Company Developments - The new version of "Jingyi Qianxun" combines evidence-based medicine with individual patient data to provide personalized treatment recommendations for clinicians [1] - The imaging pathology diagnosis module can quickly analyze imaging and pathological images, significantly reducing the burden on doctors and assisting in treatment decisions [1]

Group 1 - JD Health and BD Medical have launched a new service called "Caring for Bedridden Women's Health: Professional Care Delivered to Home," starting in Beijing [2][3] - The service combines instant retail of medical health products with at-home nursing services, providing a new solution for urinary management for bedridden female patients [2][3] - The target demographic includes women with urinary incontinence, limited mobility, and post-operative patients, addressing complications associated with catheter use [2] Group 2 - PureWick® is an innovative non-invasive urinary management solution designed specifically for bedridden women, improving comfort and dignity while simplifying the workflow for caregivers [3] - Users in Beijing can order PureWick® products through the JD app and receive at-home care services from experienced nurses, ensuring professional care and privacy [3] - This collaboration aims to contribute to the "Healthy China 2030" strategic goals by providing more efficient and user-centered home care solutions [4]

Group 1 - Hong Kong tech stocks showed strength, with JD Health (06618.HK) rising over 4% [1] - JD.com (09618.HK) and Xiaomi Group (01810.HK) both increased by more than 3% [1] - Alibaba (09988.HK) and Baidu (09888.HK) also experienced gains [1]

Group 1 - The core initiative is the "Home Testing, Love Assistance for the Disabled" public welfare activity launched by JD Health and JD Public Welfare in collaboration with the Beijing Disabled Persons Welfare Foundation, aimed at providing health services to the disabled community in Beijing [1][2] - JD Health, in partnership with three national laboratories, donated home testing services valued at a total of 520,000 yuan, which includes tests for Helicobacter pylori C13, HPV 23 typing, and trace elements such as iodine [1] - The service allows disabled individuals to receive high-quality health testing from home, facilitating a full process of "sample collection delivered to home, professional laboratory testing, and interpretation of reports by top-tier hospitals" [1] Group 2 - The event highlights the social responsibility and compassion of JD Health, JD Public Welfare, and the collaborating laboratories, showcasing how technology and innovation can lower health management barriers for special groups [2] - The initiative is not only a public welfare action but also a call for more social forces to join in supporting the disabled community, aiming to create a better life for them [2] - The event was marked by an 83-year-old hearing-impaired artist presenting a piece of art to express gratitude, symbolizing the emotional connection and appreciation fostered by the initiative [2]

Investment Rating - The stock rating for JD Health International Inc. is Underweight [5] - The industry view is Attractive [5] Core Insights - JD Health International Inc. maintained its 2025 targets despite a strong performance in Q1 2025, aiming for mid-teens revenue growth and flat operating profit [3][8] - The company expects over 20% growth in drug sales, mid-teens growth in nutritional products, and high single-digit growth in medical devices for the full year 2025 [3] - The gross profit margin (GPM) is anticipated to improve due to supply chain management efficiencies and increased advertising income, particularly in nutritional products [3] - JD Health's strategic focus includes enhancing B2C drug sales, especially for originator drugs, which currently represent approximately 30% of total drug sales [4] - The company plans to increase offline investments through greenfield projects rather than large-scale mergers and acquisitions [4] Financial Performance - In Q1 2025, JD Health reported revenue of RMB 16.6 billion, reflecting a year-over-year increase of 25.5%, which was 11% above consensus estimates [8] - The adjusted operating profit grew by 73% year-over-year to RMB 1.31 billion, with an adjusted operating profit margin of 7.9%, up 2.2 percentage points year-over-year [8] - Adjusted net profit rose by 47.7% year-over-year to RMB 1.77 billion, with an adjusted net margin of 10.6% [8]

Core Insights - The launch of the domestic antiviral drug Yisuda® (generic name: Moshurashave tablets) marks a significant advancement in China's flu treatment options, being the first drug targeting the flu virus RNA polymerase PA subunit developed in the country [1][3] - Yisuda® is designed for the treatment of both type A and B influenza in adolescents and adults aged 12 and above, requiring only a single dose for the entire treatment course, which is a notable improvement over traditional flu medications [1][3] - The drug has a low resistance mutation rate of less than 1%, indicating more stable treatment effects compared to similar antiviral drugs [3] Industry Context - The flu poses a serious public health threat, significantly impacting daily life and work, with China's antiviral market historically reliant on imported medications, leading to shortages during peak flu seasons [3] - The introduction of Yisuda® fills a gap in the domestic innovative drug market, providing a new treatment option for Chinese patients and ensuring stable drug supply through local production [3] - JD Health has established itself as a leading platform for the online launch of new specialty drugs, leveraging its supply chain capabilities to enhance accessibility and provide timely treatment options for patients [4]

Group 1 - The event on May 15 aimed to support disabled individuals in Beijing by providing health services through a donation from JD Health [2][4] - JD Health donated 3,000 home testing kits valued at approximately 520,000 yuan, including tests for Helicobacter pylori, HPV, and trace elements [4] - The initiative emphasizes the importance of health as a basic need for families and aims to enhance the quality of life for disabled individuals through accessible health services [2][4] Group 2 - The donation event was attended by various stakeholders, including representatives from JD Health, the Beijing Disabled Persons' Federation, and other supportive organizations [6] - The home testing service is designed to alleviate the burden of medical visits for disabled individuals, making health checks more convenient and less time-consuming [4] - A disabled representative expressed gratitude for the support received, highlighting the challenges faced in accessing healthcare services [4]

Investment Rating - The report maintains an "Outperform" rating for JD Health International [2][5][17] Core Insights - JD Health's revenue for Q1 2025 reached a record high of RMB 16.65 billion, reflecting a year-over-year increase of 25.5% and a quarter-over-quarter increase of 0.8%, surpassing the full-year guidance [3][13] - The significant revenue growth is attributed to increased demand during the influenza season, growth in high-value original drugs, and higher sales of health supplements due to increased advertising investments [3][14] - The company achieved an operating profit of RMB 1.07 billion, a 119.8% increase, with an operating margin of 6.4%, leading to a net profit growth of 47.7% [3][14] - JD Health plans to focus on expanding its instant retail initiatives in 10 key cities, leveraging a hybrid B2C+O2O strategy to enhance customer engagement and operational efficiency [4][15] Financial Performance and Forecast - Revenue forecasts for FY25 and FY26 are RMB 66.6 billion and RMB 75.7 billion, representing year-over-year growth of 14.5% and 13.7% respectively [5][17] - Adjusted net profit projections are RMB 4.4 billion for FY25 and RMB 5.4 billion for FY26, with a corresponding P/E ratio of 26x and 21x [5][17] - The report emphasizes the company's strong fundamentals and maintains an optimistic outlook for the first half of 2025 and the full year [5][17]

Investment Rating - The report maintains an "Outperform" rating for JD Health International [2][18]. Core Insights - JD Health's Q1 2025 revenue reached a record high of RMB 16.65 billion, reflecting a year-over-year increase of 25.5% and a quarter-over-quarter increase of 0.8%, surpassing the full-year guidance [3][14]. - The revenue growth is attributed to increased demand during the influenza season, growth in high-value original drugs, and higher sales of health supplements due to increased advertising investments [15]. - The company achieved an operating profit of RMB 1.07 billion, a significant increase of 119.8%, with an operating margin of 6.4%, contributing to a net profit growth of 47.7% [15][18]. - JD Health plans to focus on self-operated on-demand drug delivery in 10 key cities in 2025, leveraging a hybrid B2C+O2O strategy to enhance customer stickiness and operational efficiency [4][16]. Financial Performance and Forecast - Revenue forecasts for FY25 and FY26 are RMB 66.6 billion and RMB 75.7 billion, representing year-over-year growth of 14.5% and 13.7% respectively [5][18]. - Adjusted net profit is projected at RMB 4.4 billion for FY25, reflecting a decrease of 7.3%, and RMB 5.4 billion for FY26, indicating an increase of 20.5% [5][18]. - The report estimates a P/E ratio of 26x for FY25 and 21x for FY26, indicating a favorable valuation based on the company's fundamentals [5][18]. Valuation - The DCF model estimates the equity value of JD Health at HKD 136.8 billion, corresponding to a target price of HKD 42.90 per share [8][9].

Core Viewpoint - JD Health reported strong Q1 2025 earnings, exceeding market expectations, leading to a significant stock price increase and highlighting its position as a leader in the pharmaceutical e-commerce sector [1] Group 1: Financial Performance - In Q1 2025, JD Health achieved revenue of 16.645 billion RMB, a year-on-year increase of 25.5% [1] - The operating profit was 1.071 billion RMB, representing a substantial year-on-year growth of 119.8% [1] - Adjusted net profit reached 1.3 billion RMB, up 73.4% from 754 million RMB in the same period last year [1] Group 2: Product and Service Innovation - JD Health solidified its position as the "first station for the online launch of new specialty drugs" by introducing several innovative medications in Q1 2025 [1] - The company launched multiple new drugs, including those from Pfizer and Esteve, expanding treatment options for patients [1] - JD Health made significant advancements in the medical AI sector, launching the "AI Jingyi" product system and achieving over 80% usage of AI services in online consultations [2] Group 3: Strategic Partnerships and Collaborations - JD Health deepened collaborations with leading health product companies like Tongrentang and Yanzhiwu, focusing on product innovation and digital supply chain [2] - At the fifth JD Health Partner Conference, the company established cooperation intentions for new products with nearly 50 global brands [2] - A strategic partnership with China National Pharmaceutical Group was announced, focusing on comprehensive supply chain and innovative marketing across various disease areas [3] Group 4: Market Expansion and Competitive Advantage - JD Health aims to enhance its offline capabilities to provide comprehensive services to suppliers, thereby increasing bargaining power [3] - The company's strong supply chain remains a core competitive advantage, contributing to robust growth in patented drugs, health products, and medical devices [3] - JD Health plans to prioritize self-built models in its offline expansion strategy before considering acquisition opportunities [3]