JD HEALTH(06618) 广发证券·2024-08-23 02:45Investment 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].