Lyon has released a research report raising JD Health's (06618) adjusted net profit forecasts for 2025 and 2026 by 5% and 6% respectively, reflecting better cost control. The firm has upgraded its target price from HK$45 to HK$56. Lyon notes that JD Health is a major beneficiary of JD.com-SW's (09618) significant investment in APP user growth strategy, maintaining a "outperform" rating for JD Health.

Lyon believes JD Health delivered strong performance in the first half of 2025, with total revenue growing 23% year-over-year to RMB 34.8 billion (Q2 up 20% YoY, Q1 up 26% YoY), primarily benefiting from excellent performance during the 618 shopping festival, particularly in nutrition and health supplements and medical device categories. The continued outflow of original drugs from hospital channels further supports pharmaceutical demand.

Adjusted EBIT is expected to grow 57% year-over-year to RMB 2.5 billion, benefiting from improved gross margins and strict control over immediate demand investments.