Bank of America Securities: Reiterate JD HEALTH (06618) with a "buy" rating and hold a more optimistic view on the company's prospects.

Bank of America Securities released a research report stating that it has reiterated a "buy" rating for JD HEALTH (06618) and is optimistic about the company's high growth momentum and AI application potential. It is expected that the revenue and adjusted operating profit will grow by 15% and 26% respectively by 2026, higher than ALI HEALTH (00241) at 10% and 22%. In the first half of the year, JD HEALTH's revenue increased by 25% year-on-year to 35.3 billion yuan, and adjusted net profit increased by 35% year-on-year to 3.6 billion yuan, both exceeding expectations; adjusted operating profit increased by 61% year-on-year. The bank holds a more positive outlook on the company's prospects, raising its forecast for adjusted operating profit for 2025-2027 by 13% to 14%, and expecting the two factors that drove the performance in the first half of the year to continue, including an increase in market share of offline pharmacies and an increase in advertising budget for medical and health brands.