HK Stock Market Move | JD HEALTH (06618) jumped more than 3% as Morgan Stanley pointed out that the company's third-quarter performance continues to be strong, providing upward potential for its 25-year financial goals.

JD HEALTH (06618) rose more than 3%, as of the time of writing, the increase was 3.5%, to 63.6 Hong Kong dollars, with a turnover of 241 million Hong Kong dollars. Morgan Stanley released a research report stating that it is expected that JD HEALTH's third-quarter revenue will increase by approximately 24% year-on-year, mainly due to strong sales of proprietary drugs (especially in the chronic disease field), better-than-expected support from nutritional products, and medical device sales in line with expectations. Morgan Stanley also pointed out that the growth rate of advertising revenue for JD HEALTH is expected to be faster than product sales, supporting further improvement in profit margins. With operational leverage, rigorous execution, and offline investments possibly lower than previously expected (1 billion yuan less than previous expectations), they see room for upside in the current 2025 fiscal year revenue forecast growth of 20%, adjusted operating profit of 3.5 billion yuan, and adjusted net profit of 5.3 billion yuan. Morgan Stanley believes that JD HEALTH's offline investment and expanded reimbursement scope are key focus areas. They are continuing to expand their offline business, opening more than 50 pharmacy storefronts in the third quarter and planning to add approximately 150 storefronts in the fourth quarter. It is worth noting that JD's online pharmacy has now obtained partial OTC (over-the-counter) drug reimbursement eligibility in seven cities (previously three), including Beijing, Shenzhen, Guangzhou, Dongguan, Xinyang, Hefei, and Jinan. They see this as a encouraging step towards broader coverage in the coming years.