Lates News

Goldman Sachs released a report stating that JD Health's first quarter revenue and profit exceeded expectations, mainly driven by strong momentum in pharmaceuticals and nutrition products, as well as gross margin expansion. The firm reiterated its confidence in JD Health's leading position based on the company's strong supply chain capabilities in the online medical and health industry and brand recognition among users. Management considers that the heavy investment in the second half of the year will result in a conservative guidance for this year, with revenue growth in the double digits and operating profit remaining basically flat year-on-year. However, the firm's forecast is higher than market consensus and company guidance, as they believe JD Health will expand market share in the pharmaceutical category and benefit from the growth in real-time demand. The firm has raised its average revenue forecast for JD Health from this year to 2027 by 2%, reflecting stronger-than-expected sales performance supported by pharmaceuticals and nutrition products, and has also increased its net profit forecast for the same period by 1% to 3%. The firm has raised the target price for the stock from HK$37.8 to HK$42.5 with a "buy" rating.