Ge Long Hui·2025-10-14 02:41Core Viewpoint - Morgan Stanley's research report indicates that JD Health's performance in the third quarter remains robust, providing upward potential for its fiscal year 2025 targets [1] Revenue Performance - The third quarter revenue is expected to increase by approximately 24% year-on-year, driven by strong sales of proprietary medicines, particularly in the chronic disease sector, and better-than-expected performance in nutritional products [1] - Medical device sales are anticipated to meet expectations [1] Profitability and Growth - Advertising revenue growth is expected to continue outpacing product sales, supporting further improvement in profit margins [1] - Current forecasts for fiscal year 2025 include a revenue growth of 20%, adjusted operating profit of 3.5 billion, and adjusted net profit of 5.3 billion, indicating potential for upward revisions [1] Strategic Expansion - JD Health's expansion of offline investments and reimbursement scope is identified as a key focus area [1] - The company opened over 50 pharmacy stores in the third quarter and plans to add approximately 150 more in the fourth quarter [1] - JD's online pharmacy has gained partial OTC reimbursement qualifications in seven cities, up from three, including Beijing, Shenzhen, Guangzhou, Dongguan, Shenyang, Hefei, and Jinan, which is seen as an encouraging step for broader coverage in the coming years [1] Stock Rating - Morgan Stanley sets a target price of HKD 52.5 for the stock, maintaining a "Market Perform" rating [1]