Lyon: JD Health's third-quarter revenue increased by 25% year-on-year, raising the target price to HK$66.

Lyon released a research report stating that it has raised its forecast for JD Health's full-year revenue growth in 2025 to 22%, with an Ebit profit margin of 5.7%; and raised the company's adjusted net profit forecast for the next two years by 5% and 4%, with the target price raised from 64 Hong Kong dollars to 66 Hong Kong dollars, and reiterated the "outperform the market" rating. With the drive from original factory medicines and chronic disease drugs, JD Health's drug sales in the third quarter maintained a steady year-on-year growth of over 30%, while health products maintained a year-on-year growth of over 20%. Therefore, it is expected that the company's total revenue in the third quarter will increase by 25% year-on-year to 16.6 billion RMB. In addition, as the company plans to open 200 stores in the second half of the year, but only opened 50 stores in the third quarter, adjusted Ebit is expected to increase by over 40% year-on-year to 1.2 billion RMB. As for the outlook for JD Health in the second half of the year, the bank predicts a 20% year-on-year increase in revenue, meaning a 16% year-on-year increase in the fourth quarter.