JD Health tumbled by 13% to close at HK$41.15 in Hong Kong, the lowest level since November last year, after sliding more than 6% in the previous trading day.
JD Health booked a profit attributable to owners of 1.56 billion yuan for the first half of 2023, surging 600.6% from a year ago. Earnings per share rose to 0.5 yuan from 0.07 yuan. Revenue reached 27l.11 billion yuan, jumping 345 from a year ago. No interim dividend was declared for the period.
HSBC Global Research said JD Health’s H1 earnings came in below the street consensus and expected that the demand for COVID-related products might contract by 60% – 70%. The broke kept the Buy rating on the stock, but cut its target price from HK$70 to HK$65.
CLSA expected the company’s revenue to be flat year over year in H2 due to a high base, but grow by about 25% next year. CLSA lowered its target price from HK$100 to HK$80, rating maintained at Buy.
Jefferies dropped JD Health’s target price from HK$80 to HK$66 but maintained its Buy rating, and reduced its revenue forecasts for 2023 and 2024 by 12% and 11% respectively.
