Macquarie: JD HEALTH (06618) Reaches Development Inflection Point, Rating Upgraded to "Outperform"

Stock News
Aug 18

Macquarie released a research report stating that JD HEALTH (06618) achieved total revenue growth of 25% year-on-year to RMB 35.3 billion, with adjusted operating profit rising 57%, exceeding the firm's and market expectations by 8% and 11% respectively. The firm believes the company has reached a development inflection point, driven by its clear "medicine and health" closed-loop ecosystem strategy and channel expansion layout. Its core supply chain competitiveness is expected to translate into stronger pricing power, further driving profit margin expansion. Based on first-half performance and supply chain advantages, the firm has raised its 2025 and 2026 earnings forecasts by 30% and 24% respectively, upgrading the rating to "Outperform". Additionally, parent company JD.com Group (09618) continues to promote its food delivery business, bringing user traffic growth to JD HEALTH. The firm expects savings in sales and marketing expenses to continue into the second half of the year, forecasting second-half 2025 revenue growth of 22% year-on-year, with full-year adjusted net profit margin expected to expand by 30 basis points.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10