JD HEALTH (06618) surged over 10% again, with cumulative gains exceeding 20% following its earnings announcement. As of press time, the stock rose 9.71% to HK$67.2, with trading volume reaching HK$1.073 billion.

On the news front, JD HEALTH recently released its first-half results. Huatai Securities noted that JD HEALTH achieved total revenue of 35.29 billion yuan in the first half of this year, representing a 24.5% year-on-year increase, which exceeded the market consensus expectation of 20.2% growth. The firm believes JD HEALTH is well-positioned to continue benefiting from the rapid traffic growth of JD's main platform (according to QuestMobile, JD APP's daily active users (DAU) grew 44.8%, 33.4%, and 46.4% year-on-year in May, June, and July 2025 respectively). While benefiting from increased advertising demand from upstream partners, the company is gradually retaining new users through its continuously strengthening omnichannel healthcare service capabilities (B2C+O2O). Additionally, JD HEALTH's active practices in medical AI will serve as an important lever for continuously improving operational efficiency and optimizing user experience.

CICC believes JD HEALTH's 1H25 results exceeded market expectations. By business segment, the company achieved product revenue of 29.33 billion yuan (+22.7% YoY) and service revenue of 5.96 billion yuan (+34.4% YoY), demonstrating strong overall performance. The firm calculated that 2Q25 single-quarter revenue reached 18.65 billion yuan (+23.7% YoY), and estimates that JD Group's instant retail traffic investment activities during 1H may have indirectly brought traffic guidance benefits to JD HEALTH. As of the end of 1H25, the company's last twelve months (LTM) active user count exceeded 200 million, reaching a historical high. Meanwhile, the firm expects the pharmaceutical category may have achieved growth rates higher than overall revenue during 1H, remaining the core driving category. Furthermore, the firm believes that while the company remains committed to its AI and offline retail system business layout, under an anti-involution tone, overall investment may be somewhat controlled, bringing positive contributions to the full-year fundamentals.