HK Stock Market Move | JD HEALTH (06618) rose more than 5% in early trading. Institutions believe that the enhancement of drug sales will benefit the overall gross profit margin of the company.

JD HEALTH (06618) rose more than 5% in the early session and, as of the time of publication, was up 3.95% at 63.15 Hong Kong dollars with a trading volume of 80.9976 million Hong Kong dollars. Bank of America Securities released a research report stating that JD HEALTH's performance in the first half of 2025 significantly exceeded expectations, and the bank expects its performance in the second half of the year to continue to outperform market expectations. For the third quarter, Bank of America Securities raised its forecast for JD HEALTH and expects the company to maintain the rapid revenue growth momentum seen in the first half of the year. The bank is maintaining its original forecast for the fourth quarter, waiting for more visibility after the Double 11 event. The bank expects JD HEALTH's gross margin in the second half of the year to expand year-on-year. Macquarie noted that it expects JD HEALTH's strong growth momentum to continue in the second half of the year, benefiting from the direct launch of more new drugs and stronger advertising spending from merchants. Macquarie expects the enhancement of drug sales contributions to impact overall gross margins, believing that the growth rates of related categories (drugs > supplements > equipment) will not show significant changes. The company's supply chain capabilities and faster-growing market revenue can offset this drag and drive a 1.5 percentage point year-on-year expansion in the group's gross margins to 23.7% in the second half of the year.