[ET Net News Agency, 14 January 2021] Jefferies Research initiated coverage on JD
Health International (06618) with a "buy" rating and a price target of HK$184.
The research house said JD Health is a multitudinal play involving some of the
fastest-growing sectors in China: healthcare, internet, and consumer while giving exposure
to digital health and drugstores.
More importantly, it is already profitable and is gaining market share in a growing pie,
riding on the rising online penetration rate of drugstores backed by a margin expansion
story.
Jefferies projected 2019-22 sales and adjusted net profit CAGR of 49% and 26%. It
expects the top line to reach RMB19bn/RMB25bn/RMB36bn and the adjusted bottom line to
reach RMB322mn/RMB420mn/RMB692mn in 2020/21/22. (KL)