Goldman Sachs: JD Health (06618)'s performance in the first quarter beat expectations and raised the target price to HK$42.5

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it raised the revenue forecast for JD Health (06618) from 2025 to 2027 by an average of 2% to reflect strong sales of pharmaceuticals and nutritional products exceeding expectations; considering that some of the increase in gross margin will be offset by investment in customized distribution plans, the net profit forecast was raised by 1 to 3%. The target price was raised from HK$37.8 to HK$42.5, maintaining the “Buy” rating.

JD Health's revenue and profit for the first quarter of this year exceeded expectations, mainly driven by strong momentum in pharmaceuticals and nutritional products, as well as expanding gross margins. The bank reaffirmed its confidence in JD Health's leading position in the industry, as the company has strong supply chain capabilities and brand awareness. Management currently expects double-digit revenue growth for the full year of this year, and operating profit is roughly the same as the previous year. The bank believes that the guidelines are relatively conservative, because considering the high investment in the second half of this year, it also believes that the Group will expand its market share, particularly in the pharmaceutical category, and benefit from the increase in customized delivery.