Investment Rating - The investment rating for JD Health (6618.HK) is "Buy" [1] Core Insights - The company reported a revenue of 73.441 billion yuan for 2025, representing a year-on-year growth of 26.28%. The pre-tax profit was 6.03 billion yuan, up 25.7%, and the net profit attributable to shareholders was 5.367 billion yuan, an increase of 29.1% [2][3] - The growth in revenue is driven by an increase in active users, expansion of product categories, and improved online penetration rates. The number of active users reached 218 million in 2025, a year-on-year increase of approximately 19% [3] - The gross margin improved by 1.9 percentage points to approximately 24.8% in 2025, contributing to an adjusted net profit margin increase of 0.66 percentage points, reaching 8.9% [3] - The company has established itself as a leading platform for the launch of new drugs, with over 100 new drugs launched in 2025, compared to just over 30 in 2024 [3] - JD Health has opened over 300 self-operated pharmacy stores by the end of 2025, enhancing its product offerings and service capabilities [4] Financial Summary - For 2026, the projected revenue is approximately 87.602 billion yuan, with a year-on-year growth rate of 19%. The net profit is expected to be around 5.437 billion yuan, reflecting a growth of 1% [5][6] - The gross margin is forecasted to increase to 25.57% in 2026, with a net asset return (ROE) of 8.30% [5][6] - The earnings per share (EPS) for 2026 is estimated at 1.69 yuan, with a price-to-earnings (P/E) ratio of 25.15 [5][6]