JD Health’s Q2 result below street consensus, target price cut to HK$65 from HK$70 – HSBC
JD Health’s Q2 result below street consensus, target price cut to HK$65 from HK$70 – HSBC

JD Health’s Q2 result below street consensus, target price cut to HK$65 from HK$70 – HSBC

HSBC Global Research said that JD Health’s second-quarter results came in below the street consensus, which sapped the broker’s confidence on revenue growth in the second half of the year.

The demand for COVID-related products might contract by 60% – 70% and the broker lowered its forecast for JD Health’s revenue in the second half from a 17% year-on-year uptick to flattish. 

In addition, it cut the forecast of the company’s 2023-25 revenue by 9%, 12%, 10%, respectively.

JD Health’s share price might be under pressure before the normalization of growth. That said, it remained upbeat on the company’s long-term prospects and kept the Buy rating, with its target price cut from HK$70 to HK$65.