JD HEALTH(06618) 天风证券·2024-11-22 04:59Investment Rating - The investment rating for JD Health (06618.HK) is maintained at "Buy" with a target price of 28.6 HKD [1]. Core Views - JD Health reported a revenue of 13.302 billion HKD for Q3 2024, representing a year-on-year growth of 14.8% from 11.585 billion HKD [1]. - The operating profit for Q3 2024 reached 552 million HKD, a significant increase of 216.0% year-on-year, with a Non-IFRS operating profit of 862 million HKD, up 15.7% [1]. - The company is expanding its online medical insurance services, having launched online payment services in 10 cities, and has connected nearly 2,000 retail pharmacies, covering over 100 million people [1]. Summary by Sections Financial Performance - For Q3 2024, JD Health achieved a revenue of 13.302 billion HKD, a 14.8% increase year-on-year, and an operating profit of 552 million HKD, which is a 216.0% increase year-on-year, resulting in an operating profit margin of 4.1%, up 2.6 percentage points [1]. Operational Developments - The company has introduced innovative service models and has launched online medical insurance payment services in 12 cities as of September 30, 2024, with a total of nearly 2,000 pharmacies connected [1]. - JD Health has also enhanced its online medical services by launching over 100 home testing services and 27 home care services across 14 cities, improving the one-stop service experience [1]. Market Position and Strategy - The company is expected to continue increasing its market share as consumer health awareness rises and online medical insurance services expand [1]. - During the Double Eleven shopping festival, JD Health saw significant growth in various health product categories, with a 140% year-on-year increase in sales for products targeting the elderly [1]. - Strategic partnerships with brands aim for a 300% increase in sales over the next three years, indicating a focus on diversifying health consumption [1]. Investment Outlook - The revenue forecasts for 2024-2026 have been adjusted to 58.5 billion, 64.7 billion, and 71.8 billion HKD respectively, with net profit estimates of 4.6 billion, 5.0 billion, and 6.1 billion HKD [1]. - The long-term outlook remains positive due to the company's strengthening position as a self-operated pharmaceutical e-commerce platform and its leading supply chain capabilities [1].