Core Viewpoint - The company reported better-than-expected performance for 1H26FY, driven by strong growth in original prescription drugs, with revenue reaching 16.697 billion yuan, a year-on-year increase of 17.0% [1] Performance Review - For 1H26FY, the company achieved revenue of 16.697 billion yuan (+17.0% YoY) and non-GAAP net profit of 1.356 billion yuan (+38.7% YoY), with a profit margin of 8.1% (+1.3 percentage points YoY) [1] - Revenue breakdown by business segments shows self-operated business revenue at 14.38 billion yuan (+18.6% YoY), pharmaceutical e-commerce platform revenue at 1.84 billion yuan (+7.5% YoY), and digital service business revenue at 480 million yuan (+8.2% YoY) [1] Development Trends - The original prescription drug category is driving steady revenue growth for the company, with high growth in drug categories contributing to an increase in overall ARPU [1] - The company is enhancing strategic partnerships with upstream enterprises, including a strategic cooperation agreement with Innovent Biologics and a collaboration with Shengxiang Bio for a respiratory virus and bacteria testing project [2] Profitability Forecast and Valuation - The company is expected to maintain strong profitability, with an adjusted non-GAAP net profit forecast of 2.48 billion yuan and 2.75 billion yuan for the upcoming periods, reflecting a 16% increase [2] - The target price has been raised by 30% to 7.1 HKD, indicating a potential upside of 23%, while maintaining an outperform rating [2]

Group 1 - The increasing awareness of obesity as a chronic disease and its health risks has led to a growing demand for weight management solutions in China, with a projected adult overweight and obesity rate of 70.5% by 2030 if not effectively addressed [1] - The GLP-1 class of innovative drugs is becoming a focal point for pharmaceutical companies, with significant competition in drug development aimed at treating obesity and overweight conditions [1] - Online platforms are being recognized for their value in connecting patients with medications and providing professional health support services, influencing pharmaceutical companies' partnership selections [1] Group 2 - JD Health successfully launched the weight loss drug Ma Shidu (generic name: Magsduptide injection) on its platform shortly after its approval, marking a significant entry into the weight loss market [2][3][4] - Ma Shidu has four key advantages over previous weight loss medications, including effective improvement of fatty liver disease, clinical trials based on Chinese populations, enhanced convenience and safety in administration, and ongoing clinical trials for various demographics [5] - The collaboration between JD Health and pharmaceutical companies reflects a mutual interest in leveraging online channels for drug sales and health management, with JD Health's platform being a critical player in this transition [6][8] Group 3 - JD Health's partnerships with major pharmaceutical companies, such as the strategic agreement with Novo Nordisk, highlight the shift from merely selling drugs to managing health, emphasizing the importance of online platforms in the healthcare ecosystem [6][9] - The online platform has seen significant user engagement, with nearly 300,000 users purchasing GLP-1 medications during the 618 shopping festival, indicating a threefold increase in sales [9] - JD Health has introduced a multidisciplinary "weight loss clinic" to provide comprehensive services, integrating various medical specialties to support users in their weight management journey [10] Group 4 - The complexity and instability of peptide drugs necessitate stringent cold chain logistics for safe storage and transportation, which has become a competitive factor for online channels [11] - JD Logistics has established a nationwide cold chain distribution network, improving delivery efficiency and ensuring compliance with storage regulations, contributing to JD Health's leading market share of over 70% in the online weight loss category [11]