First Read: JD Health "Q126 review: adj. OP stronger than expected;..."

研报英文原文证据摘录

First Read: JD Health "Q126 review: adj. OP stronger than expected;..."

5E 2.05 2.04

similar to that of Q126 (around 5%) but should accelerate slightly throughout rest of the

12/26E 2.12 2.09

year on lower comps (due to gov. subsidies). We estimate a cRmb1bn YoY decline in 12/27E 2.54 2.49

cash-related income in 2026, but should be more than offset by growth in adj. OP (we

forecast adj. OP of Rmb5.55bn, up from Rmb4.39bn in 2025); hence adj. NP should Henry Liu, CFA

comfortably beat mgmt.'s latest guidance of at least Rmb6.5bn in our view. We believe Analyst

upside would come from stronger than expected drug sales and GPM expansion. henry-za.liu@ubs.com

+86-105-832 8509

Investor concern over growth should ease from Q226 onwards Chen Chen, PhD

AnalystJDH's shares were under pressure heading into results (down 11% over the past month

S1460520100001

vs up 4% for HSTech), which we attribute mainly to a low likelihood of mgmt. revising

chen-zb.chen@ubs.com

up full-year earnings guidance in the near term, and partially to investor concern over +86-10-5832 8201

JDH's growth in Q226 due to lower O2O investments from JD Group. We continue to

Kenneth Fongbelieve that JDH's revenue growth is mainly driven by the structural trend of rising online

Analyst

penetration (particularly for drugs) and its market share gain, while its OPM expansion is

kenneth-kc.fong@ubs.com

the result of increasing competitiveness in user mindshare and supply chain capability. +852-3712 3890

We expect Q226 results to be the next potential positive catalyst.

Valuation: Price target of HK$70.70, maintain Buy

We base our price target on 25x 2027E adj. earnings, higher than the internet and

pharmacy sector average considering JDH's stronger growth prospects over the

medium-term.