JD Health International Inc 06618

Morningstar Rating

Company Report

JD Health Ramping Up Sales as Consumers Get More Comfortable With Healthcare E-Commerce

We expect narrow-moat JD Health to maintain a market leading position for healthcare e-commerce in the near and medium term. It holds about 40% market share, similar to its main rival AliHealth, which makes this niche industry dominated by mostly two competitors. Its business model is similar to AliHealth except with one key difference in that it has greater coverage and better next-day or same-day delivery efficiency than its rival. It has cold-chain capabilities for 300 cities and can meet next-day deadlines for 80% of its orders. We believe this key differentiation will allow it to maintain a leading market share due to the importance of timeliness and quality of goods when it comes to receiving pharmaceutical products.

Price vs Fair Value

06618 is trading at a LOCK|!TM^M> premium.
Price
HK$38.92
Fair Value
?X
Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Medical expenditures in China are likely to increase at an above GDP rate as healthcare spending remains a low percentage of total spending.

Bears

JD Health and healthcare e-commerce players are unable to sway public perception over product safety on platforms where there a low ceiling for long-term adoption from Chinese consumers.

News

Trading Information

Previous Close Price
—
Day Range
—–—
52-Week Range
—–—
Bid/Ask
— / —
Shares Outstanding
3.19B
Market Cap
—
Volume/Avg
— / —

Key Statistics

Price/Earnings (Normalized)
16.79
Price/Sales
1.41
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
—

Company Profile

JD Health is the largest healthcare e-commerce platform in China in terms of revenue. The company offers pharmaceutical drugs and healthcare products on its platform, both as a marketplace that connects merchants to consumers and as a first-party, or 1P, direct retailer. It also offers online consultation from real life doctors and separately partners with offline pharmacies that can provide location-based 24/7 delivery as part of an omnichannel initiative to complement its core e-commerce business. Its closest competitors are Alibaba Health and Meituan for its e-commerce business. As of Dec. 31, 2024, the platform has over 200 million active annual users and over 70,000 merchants. JD Health is 67.49% owned by its parent company, JD.com.
Sector
Healthcare
Industry
Pharmaceutical Retailers
Stock Style Box
Large Core
Total Number of Employees
6,018

Competitors

Valuation

Metric
06618
01833
00241
Price/Earnings (Normalized)
16.7927.0121.47
Price/Book Value
1.751.062.43
Price/Sales
1.412.031.26
Price/Cash Flow
13.3426.8220.32
Price/Earnings
06618
01833
00241

Financial Strength

Metric
06618
01833
00241
Quick Ratio
2.322.582.48
Current Ratio
2.693.063.03
Interest Coverage
387.13—1,292.58
Quick Ratio
06618
01833
00241

Profitability

Metric
06618
01833
00241
Return on Assets (Normalized)
8.40%3.64%10.33%
Return on Equity (Normalized)
11.42%4.97%13.99%
Return on Invested Capital (Normalized)
9.43%3.94%11.11%
Return on Assets
06618
01833
00241

Pharmaceutical Retailers Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JD Health International Inc
JDHIF
—LOCK|q<?>D$16B
JD Health International Inc ADR
JDHIY
—LOCK|$>>%q$16B
Raia Drogasil SA ADR
RADLY
—LOCK|l%<F$7B
Alibaba Health Information Technology Ltd
ALBHF
—LOCK|Hy@$$6B
Alibaba Health Information Technology Ltd ADR
ALBBY
—LOCK|>&Tg$6B
Clicks Group Ltd ADR
CLCGY
—LOCK|c@Fz$3B
Clicks Group Ltd
CCKRF
—LOCK|S@?%$3B
COSMOS Pharmaceutical Corp
CSMYF
—LOCK|h?%$3B
Redcare Pharmacy NV ADR
SAEYY
—LOCK|k&$2B
High Tide Inc
HITI
—LOCK|vD#$240M

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