JD Health (6618 HK) Buy: Dip in supplement demand is only short term

Research evidence excerpt

JD Health (6618 HK) Buy: Dip in supplement demand is only short term

(x) 17.9 11.3 8.1 5.6

JDH’s confidence in its long-term outlook, providing valuation support. ROE (%) 11.3 11.0 11.7 12.4

Key business updates: 1) Update on the supplement business: JDH observes an 52-WEEK PRICE (HKD)

impact on segmental growth, especially for functional supplements by international 85.00

brands. But long-term growth prospects stay robust given growing health awareness in

58.50

China and JDH’s unapparelled quality control in its 1P business. In the near term, JDH

will focus on: i) providing more reliable evidence on its platform regarding products’ 05/25 11/25 05/2632.00

effects so that consumers can evaluate when to make purchases; and ii) leveraging its Target price: 79.50 High: 69.65 Low: 38.00 Current: 45.44

exposure to basic supplement categories, which shows resilient sales performance. Source: LSEG IBES, HSBC estimates

2) Upstream partnership: JDH continued to step up collaboration with major

pharmaceutical companies this quarter, supporting its positioning as a key online Charlene Liu*

channel for new drug launches. It launched 30+ new drugs in 1Q26 (vs 100+ in 2025 Head of Internet and Gaming Research, Asia Pacific

The Hongkong and Shanghai Banking Corporation

full year). In JDH’s view, strong partnerships with upstream companies, a proven track Limited, Singapore Branch

charlene.r.liu@hsbc.com.sg

record, and unique 1P positioning set it apart from competitors. 3) AI-powered service +65 6658 0615

ecosystem: JDH further integrated its “AI Jingyi” medical assistant into its service

Jessie Lu*, CFA

model. Notably, the number of users consulting AI agent “Dr. Dawei” in 1Q26 already Analyst, Internet and Gaming Research

The Hongkong and Shanghai Banking Corporation Limited