CAITONG SECURITIES·2026-03-07 10:25Investment Rating - The investment rating for JD Health (06618) is maintained as "Buy" [2] Core Insights - JD Health reported a significant revenue growth of 26.3% year-on-year, reaching 73.44 billion RMB in 2025, which exceeded market expectations by 3.1% [7] - The company's Non-IFRS operating profit margin and net profit margin reached historical highs, benefiting from optimized revenue structure and improved operational efficiency [7] - The company continues to see strong growth in its core e-commerce business, with pharmaceutical and health product sales increasing by 24.8% to 60.9 billion RMB [7] - The active user base reached 217.7 million, a 19% increase year-on-year, with over 100 new drugs launched on the platform in 2025 [7] - JD Health is actively exploring AI applications across various scenarios, enhancing platform conversion efficiency [7] Financial Forecast - Revenue projections for 2026-2028 are estimated at 86.26 billion RMB, 98.96 billion RMB, and 111.65 billion RMB respectively, with corresponding net profits of 6.57 billion RMB, 7.63 billion RMB, and 8.72 billion RMB [6][8] - The company is expected to maintain a robust growth trajectory, with a net profit growth rate of 5.6% in 2026 and 16.84% in 2027 [6] - The earnings per share (EPS) is projected to increase from 1.70 RMB in 2025 to 2.40 RMB in 2028 [6] Key Financial Metrics - The company reported a cash reserve of 69.5 billion RMB at the end of 2025 [7] - The return on equity (ROE) is expected to improve from 8.95% in 2025 to 9.76% in 2028 [6] - The price-to-earnings (P/E) ratio is projected to decrease from 28.73 in 2025 to 17.72 in 2028, indicating potential valuation improvement [6]