JD HEALTH (06618) reported robust revenue and profit growth in Q3 2025, with accelerating momentum, according to a research report. The company has strengthened its leading position in pharmaceutical e-commerce through expanded medical insurance coverage, offline service expansion, and deeper AI healthcare applications. Minsheng Securities initiated coverage with a "Recommend" rating, citing strong growth potential.
**Key Financial Highlights** In Q3 2025, JD HEALTH achieved revenue of RMB 17.12 billion, up 28.7% YoY from RMB 13.3 billion, accelerating from 23.7% growth in Q2. Operating profit surged 125.3% YoY to RMB 1.243 billion, while Non-IFRS operating profit rose 59.9% to RMB 1.378 billion. Non-IFRS net profit increased 42.4% to RMB 1.902 billion, reflecting sustained profit growth momentum.
**Operational Progress** JD HEALTH expanded medical insurance coverage, benefiting nearly 200 million users, a significant increase from over 100 million a year earlier. As of June 30, 2025, the platform hosted over 150,000 merchants, up by 50,000 since end-2024. Its AI medical assistant, "AI Jing Doctor," served more than 50 million users. Offline services accelerated, with the first self-operated aesthetic medicine store opening in Beijing’s CBD during the "Double 11" shopping festival, alongside three new health check-up centers. Overall order volume surged over 4x YoY.
Revenue growth accelerated quarter-over-quarter, with Q3 revenue up 28.7% YoY to RMB 17.12 billion, a 5.03-percentage-point improvement from Q2. Operating profit jumped 125.3% YoY to RMB 1.243 billion, while Non-IFRS net profit rose 42.4% to RMB 1.902 billion. The net profit margin improved to 11.1% from 10.1% in H1, driven by scaling effects and operational efficiency gains.
**Strategic Partnerships** JD HEALTH reinforced its position as the "preferred launch platform for innovative drugs" by signing agreements with Eli Lilly, Innovent Biologics, Eisai China, and Bayer China in Q3. These collaborations enhance its supply chain advantage in high-end pharmaceuticals.
**AI-Driven Healthcare Innovation** In September 2025, JD HEALTH partnered with Tongji Hospital, affiliated with Huazhong University of Science and Technology, to develop a leading smart outpatient service platform. The collaboration will integrate JD’s AI medical assistant into hospital workflows, creating an AI-powered patient companion system to streamline healthcare access. The two parties will also explore telemedicine to pioneer new "internet + healthcare" models.
**Investment Recommendation** With its dominant position in pharmaceutical e-commerce, expanding medical insurance coverage, and scalable AI services, JD HEALTH is poised for near-term catalysts. Minsheng Securities forecasts 2025–2027 revenue of RMB 71/82.9/95.5 billion and adjusted net profit of RMB 6.3/7.4/8.5 billion. The current share price implies a PE of 32x/28x/24x for 2025–2027.
**Risks** Macroeconomic volatility, intensifying competition, tighter internet healthcare and insurance policies, and potential shortfalls in innovative drug sales or offline store expansion.
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