HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

China Healthcare Weekly (Mar.10)- Three Conditions to Be Biopharma, Anticipate the Collapse, DS-8201

“Sudden Death” of Silicon Valley Bank (SVB) - The Impact on China Healthcare

Ping An Healthcare and Technology Company Limited (1833.HK)- To Turn Things Around or to Fail Again?

Ping An Good Doctor (1833.HK) - A Vicious Cycle?

Keymed Biosciences (2162.HK) - We Have High Hopes for Keymed, but Valuation Is Expensive

JD Health (6618.HK) 2022H1 - A Second Growth Point Is Needed to Reassure Investment Logic

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

JD Health International  / Equity Bottom-Up

<ul>
<li>JD Health's dependence on direct sales business wouldn’t change. But the gross profit of prescription drugs is low. If JD Health increases its revenue proportion, overall gross margin would decline.</li>
<li>The business supporting JD Health's high growth in the future is more dependent on the second growth point, but we haven’t seen any new business with high certainty so far.</li>
<li>The essence of JD Health's business is “product sale e-commerce” rather than “a comprehensive online healthcare platform” at the current stage, which cannot support high valuation in our view.</li>
</ul>


JD Health's dependence on direct sales business wouldn’t change. But the gross profit of prescription drugs is low. If JD Health increases its revenue proportion, overall gross margin would decline.
The business supporting JD Health's high growth in the future is more dependent on the second growth point, but we haven’t seen any new business with high certainty so far.
The essence of JD Health's business is “product sale e-commerce” rather than “a comprehensive online healthcare platform” at the current stage, which cannot support high valuation in our view.


JD Health (6618.HK) - It's Time to Reassess the Business Prospects and Valuation