HK Stock Movement | JD HEALTH (06618) Rises Over 4% as Analysts Expect Continued Revenue Growth Momentum with Steady Drug Sales

Stock News
Nov 12

JD HEALTH (06618) surged more than 4%, reaching HK$64.05 by the time of writing, with a trading volume of HK$162 million. A research report from CLSA noted that JD HEALTH maintained robust year-on-year drug sales growth of over 30% in Q3, driven by original and chronic disease medications, while health supplements grew by more than 20% YoY. The firm expects JD HEALTH's total Q3 revenue to rise 25% YoY to RMB16.6 billion. Additionally, adjusted EBIT is projected to increase over 40% YoY to RMB1.2 billion, though the company only opened 50 of its planned 200 new stores in Q3. For H2, CLSA forecasts a 20% YoY revenue growth, implying a 16% rise in Q4. UBS previously highlighted expectations for JD HEALTH's strong H1 revenue growth momentum to extend into Q3, with sustained expansion across product categories—particularly pharmaceuticals—and robust performance in both proprietary and third-party segments. Improved gross margins are anticipated due to strong advertising revenue growth and slight expansion in product sales margins.

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