Investment Rating - The report maintains a "Buy" rating for JD Health (06618) [4][10] Core Insights - JD Health's Q3 2025 financial results exceeded expectations, with revenue of 17.12 billion (up 28.7%) and adjusted net profit of 1.90 billion (up 42.4%) [8][9] - The company is expected to benefit from strong growth in drug sales, increased advertising revenue, and enhanced AI capabilities [9][10] - The report projects revenue growth for 2025-2027, with estimates of 70.95 billion, 81.99 billion, and 93.49 billion respectively [6][10] Financial Data and Profit Forecast - Revenue and profit forecasts for JD Health are as follows: - 2023: Revenue 53.53 billion, Net Profit 2.14 billion - 2024: Revenue 58.16 billion, Net Profit 4.16 billion - 2025E: Revenue 70.95 billion, Net Profit 4.74 billion - 2026E: Revenue 81.99 billion, Net Profit 5.66 billion - 2027E: Revenue 93.49 billion, Net Profit 6.76 billion [6][12]

Investment Rating - The report maintains an "Outperform" rating for JD Health International with a target price of HKD 68.14, reflecting a significant upward revision of 58.8% from previous estimates [2][21]. Core Insights - JD Health's revenue for H1 2025 reached RMB 35.29 billion, representing a year-on-year growth of 24.5%, driven by strong demand for pharmaceutical and health products [3][14]. - The company's gross margin improved to 25.2%, with operating profit increasing by 105.5% to RMB 2.13 billion, indicating robust profitability growth [4][15]. - The deployment of AI technology is enhancing operational efficiency and long-term competitiveness, with over 500 AI agents launched in JD Internet Hospital [4][16]. Financial Performance Summary - Revenue projections for FY25 and FY26 are set at RMB 70.4 billion and RMB 81.2 billion, respectively, with expected growth rates of 21.0% and 15.4% [5][18]. - Adjusted net profit is forecasted to be RMB 5.6 billion for FY25, reflecting a 15.9% increase year-on-year [7][20]. - The company anticipates a continued strong performance in H2 2025, with pharmaceutical sales expected to grow by 25% [5][18]. Valuation and Forecast - A DCF valuation approach estimates the company's equity value at HKD 218.0 billion, leading to a target share price of HKD 68.14 [8][21]. - The report highlights the advantages JD Health holds in both supply and demand sides of the market, positioning it as a leader in the integrated online-offline healthcare sector [5][17].