CICC International: Raises target price of JD Health (06618.HK) to 45.4 Hong Kong dollars, first quarter revenue and gross margin exceed expectations.

According to the Wise Finance APP, Industrial Bank International has released a research report stating that it has raised its 2025 fiscal year sales forecast for JD Health (06618.HK) by 4.7%. The reason for this is that as the national healthcare insurance budget tightens, the market share of original research drugs is steadily increasing, making it difficult to prescribe them. This has led many out-of-pocket users to turn to online purchases. Based on the assumption that JD Health will achieve accelerated service revenue and sales in the 2025 fiscal year due to stronger brand recognition among merchants, the bank has raised its 2025 fiscal year gross profit margin forecast by 0.2 percentage points and its non-IFRS net profit forecast to 4.8 billion yuan, an increase of 2%. The target price has been raised from 43.3 Hong Kong dollars to 45.4 Hong Kong dollars. The rating is maintained as "outperform the market".