The analyst rating from Huatai Securities for JD HEALTH is based on several key factors:
1. Revenue Growth: The report predicts a 22.7% year-over-year growth in 4Q25 revenue, driven by increased online penetration in the pharmaceutical category and the company's supply chain advantages.
2. Operating Profit: JD HEALTH is expected to achieve a non-IFRS operating profit of RMB260 million, indicating strong operational performance.
3. Seasonal Factors: The seasonal misalignment of the flu is anticipated to provide short-term support for revenue growth in the last quarter.
4. Long-term Projections: For the entire year of 2025, revenue is expected to increase by 25% year-over-year to RMB72.7 billion, with non-IFRS operating profit reaching RMB4.11 billion.
5. Revised Profit Forecasts: Huatai Securities has raised its non-IFRS net profit forecasts for JD HEALTH for 2025-2027 by significant percentages (11.6%/15.6%/22.4%), reflecting increased confidence in the company's financial performance.
6. Target Price Increase: The target price for JD HEALTH has been raised from HKD68.3 to HKD77.4, reinforcing a positive outlook.
Overall, these factors contribute to Huatai Securities maintaining a "Buy" rating for JD HEALTH.
