JD Health Likely Outpacing Rivals — Market Talk

JD Health International is likely to maintain solid momentum next year, Jefferies analysts say in a research note. The company's robust 3Q performance reinforces Jefferies' positive stance on its continued market share expansion, branded drug sales momentum and growing monetization from advertising and digital marketing, the analysts say. The company has raised its 2025's net profit guidance to 6.2 billion yuan from 5.6 billion yuan, the analysts note. "We expect a strong finish to 2025 and another solid year in 2026," the analysts say. Jefferies maintains a buy rating and a target price of HK$88.00. Shares last traded at HK$69.40. (tracy.qu@wsj.com)

JD Health's accelerating pharmaceutical sales should continue benefiting from the shift of prescriptions from hospitals to out-of-hospital channels and rising online penetration of drug sales into 2026, Nomura analysts Rachel Guo and Jialong Shi say in a note. The company is well-positioned to gain market share thanks to strong supply-chain capabilities and strong customer association with quality. The company is also seeing sustained strength in nutrition sales and advertising revenue. Nomura projects 4Q revenue to grow 14% on year and 10% on quarter, with potential upside if influenza-related demand increases. The bank raises its 2025 and 2026 earnings forecasts by 9% and 8%, respectively. It maintains a buy rating and lifts its target price to HK$80.00 from HK$72.00. Shares closed at HK$69.40. (jason.chau@wsj.com)

JD Health is expected to deliver strong 3Q revenue growth, supported by robust sales of pharmaceutical and nutrition products, Nomura analysts Rachel Guo and Jialong Shi say in a note. They estimate that 3Q revenue rose 24% on year, with pharmaceutical segment growth benefiting from the flow of prescriptions from hospitals to out-of-hospital channels and rising online sales penetration. JD Health could outpace industry growth and gain market share by leveraging its supply-chain capabilities. Growth in nutrition product sales could extend into 4Q, they add. Nomura projects 2H revenue to increase 20% despite a higher base. The bank raises its 2025-2026 revenue forecast by 2% and maintains a buy rating and HK$72.00 target price on the stock. Shares were recently at HK$61.80. (jason.chau@wsj.com)

JD Health is expected to deliver strong 3Q revenue growth, supported by robust sales of pharmaceutical and nutrition products, Nomura analysts Rachel Guo and Jialong Shi say in a note. They estimate that 3Q revenue rose 24% on year, with pharmaceutical segment growth benefiting from the flow of prescriptions from hospitals to out-of-hospital channels and rising online sales penetration. JD Health could outpace industry growth and gain market share by leveraging its supply-chain capabilities. Growth in nutrition product sales could extend into 4Q, they add. Nomura projects 2H revenue to increase 20% despite a higher base. The bank raises its 2025-2026 revenue forecast by 2% and maintains a buy rating and HK$72.00 target price on the stock. Shares were recently at HK$61.80. (jason.chau@wsj.com)

By Tracy Qu

JD Health International shares surged Friday after the company reported an earnings beat for the first half.

The Hong Kong-listed stock jumped 11% to 61.00 Hong Kong dollars, equivalent to US$7.79, on track for their largest daily percentage gain in nearly a year. That bucked the broader Hang Seng Index, which was down 1.0%.

The Beijing-based company, controlled by e-commerce giant JD.com, said Thursday that revenue rose 24.5% in the first half. Meanwhile, net profit rose 27.45%.

Jefferies raised its target price on the stock to HK$88.00 from HK$60.00 after the result beat expectations. JD Health's outlook is supported by a stronger branded drug business and disciplined investment in online-to-store services, the investment bank said.

JD Health guided for revenue to grow 20% in 2025 and expects profit growth in the mid-teens, Jefferies said, citing management.

The company said it plans to further tap opportunities linking retail, pharmacy and healthcare.

Write to Tracy Qu at tracy.qu@wsj.com

Revenue grew 24.5% year-over-year to RMB 35.3B, with strong gains in direct sales, services, and AI-powered healthcare. Active users reached 200M, and profitability improved, supported by omnichannel expansion and innovation.

Based on JD Health International, Inc. [6618] H1 2025 Audio Transcript — Aug. 14 2025