JD HEALTH (06618) saw its stock price surge 5.13% during Wednesday's intraday trading, buoyed by positive analyst reports and expectations of robust third-quarter performance. The company's shares reached HK$64.05, with a trading volume of HK$162 million, as investors responded to encouraging forecasts from major financial firms.

A recent research report from CLSA highlighted JD HEALTH's impressive year-on-year drug sales growth, exceeding 30% in Q3. This growth was primarily driven by original and chronic disease medications. Additionally, the health supplements segment showed strong performance, growing by more than 20% compared to the same period last year. CLSA projects JD HEALTH's total Q3 revenue to rise 25% year-on-year to RMB16.6 billion, with adjusted EBIT expected to increase over 40% to RMB1.2 billion.

Further bolstering investor confidence, UBS anticipates JD HEALTH's strong first-half revenue growth momentum to extend into the third quarter. The financial services firm expects sustained expansion across product categories, particularly in pharmaceuticals, with robust performance in both proprietary and third-party segments. Improved gross margins are also anticipated, driven by strong advertising revenue growth and slight expansion in product sales margins. These positive outlooks from major analysts appear to be the primary catalysts behind JD HEALTH's significant stock price increase.