Zhi Tong Cai Jing·2025-08-18 07:05Core Insights - JD Health (06618) reported a revenue of 35.29 billion RMB in the first half of the year, representing a year-on-year growth of 24.5% [1] - The non-IFRS net profit reached 3.57 billion RMB, up 35% year-on-year, with a non-IFRS net profit margin of 10.1%, an increase of 0.8 percentage points, exceeding market expectations [1] - The strong performance is attributed to the robust growth in the pharmaceutical category and favorable collaborations with pharmaceutical companies [1] Financial Projections - The company has raised its net profit forecasts for 2025 and 2026 by 30% and 21%, respectively, to 4.51 billion RMB and 5.28 billion RMB [1] - The overall valuation of the sector has recently increased, leading to a maintained "outperform" rating for the company [1] Market Performance - JD Health's stock price performed strongly in the first half of the year, benefiting from immunity to external demand factors such as tariffs and a stable competitive landscape in the domestic market [1] - Both quarters of the first half exceeded market expectations, and the overall rise in Hong Kong stock valuations contributed to the company's strong performance as a weighted stock in multiple indices [1] Valuation and Growth Potential - Despite the current valuation being relatively high compared to recent years, the company's strong growth potential provides fundamental support [1] - The recent positive sentiment in the Hong Kong stock sector suggests that the company may experience a valuation uplift in line with market trends [1]