UBS has issued a research report maintaining a "Buy" rating on JD Health with a target price of HK$78. The company reported full-year results for the period ending December last year, revealing revenue of RMB 73.4 billion, a year-on-year increase of 26.3%, and an adjusted net profit of RMB 6.5 billion. Both revenue and profit exceeded market expectations. UBS indicated that the group's revenue growth for 2025 is projected to surpass the guided range of 22% to 25%. The adjusted operating profit margin increased by 1.5 percentage points year-on-year, primarily driven by a 1.9 percentage point annual improvement in gross margin. Furthermore, the adjusted net profit exceeded the guidance of RMB 6.2 to 6.3 billion. Fourth-quarter revenue grew 27.4% compared to the same period last year, which is believed to be largely attributable to seasonal flu demand. Investors are advised to pay close attention to the company's guidance for 2026.
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