Lyon: Reiterate the "outperform" rating on JD Health (06618.HK) with a target price of HK$45.

According to Wisdom Financial APP, a report released by Lyon stated that it is expected that JD Health (06618.HK) will perform steadily in the first quarter of this year. Total revenue is estimated to increase by 15% year-on-year to 15.3 billion RMB, mainly due to increased demand for pharmaceuticals driven by the flu outbreak since January, and improved user traffic on the JD platform due to the old-for-new exchange policy. The bank expects pharmaceutical sales to increase by 20% year-on-year in the quarter, and health care products and medical equipment sales to maintain a growth rate of over 10% year-on-year. Adjusted pre-tax profit is expected to increase by 15% year-on-year, with a stable profit margin of 5.7%. The bank expects total revenue to increase by 14% year-on-year in the first half of the year, indicating a 13% year-on-year increase in the second quarter. The bank maintains its forecast of 15% year-on-year revenue growth and a net profit margin of 6.6% for the company this year. Lyon reiterated its "outperform" rating on JD Health and a target price of HK$45.