In "Major Banks," China International Capital Corporation raised JD HEALTH's target price to 67.4 yuan, with the third quarter's fundamentals likely to continue strong growth momentum

CICC published a research report predicting that JD HEALTH (06618.HK) may continue its performance from the first half of the year in the third quarter, with an expected year-on-year revenue growth rate of about 25%. Considering the company's ongoing investment in building a comprehensive channel system, CICC expects the non-IFRS net profit for the third quarter to achieve a year-on-year growth rate of approximately double digits.

CICC stated that JD HEALTH's core business performed strongly in the first half of this year, and from a category perspective, it is expected to benefit mainly from the growth driven by the pharmaceutical category, particularly the original research drug subcategory, which may be even stronger. At the same time, CICC observed that foreign original research pharmaceutical companies have been continuously strengthening their layout in the outpatient market and increasing cooperation with online channels in recent quarters. CICC expects the company's revenue in the third quarter to continue its strong growth trend, with an expected year-on-year growth rate of about 25%.

Considering the contribution of pharmaceutical and pharmaceutical company collaborations exceeding expectations, and that subsequent investments may be relatively controllable under the anti-involution tone, CICC raised JD HEALTH's non-IFRS (excluding non-recurring gains and losses) net profit forecasts for 2025 and 2026 by 5% and 4%, to RMB 5.72 billion and RMB 6.31 billion, respectively. With the continuous advancement of the comprehensive channel system, the company's competitiveness is becoming increasingly solid. CICC raised the company's target price by 11.2% to HKD 67.4, maintaining an "outperform the industry" rating, believing that its fundamentals in the third quarter may continue to show strong growth