Core Insights - The article highlights the continuous progress and strategic partnerships of Yidu Technology in the AI healthcare sector, including collaborations with major hospitals and participation in industry conferences [1][3][5] Group 1: Strategic Partnerships and Collaborations - Yidu Technology has established a comprehensive strategic partnership with Beijing Friendship Hospital to co-build a clinical research smart laboratory, focusing on the application of large model technology in medical research [1] - The company collaborated with Peking University Cancer Hospital to develop the "CACA Guideline Assistant," an AI tool that integrates authoritative treatment guidelines with hospital systems to enhance clinical decision-making [17] - Yidu Technology has been the main operator of the "Shenzhen Huiminbao" insurance program for three consecutive years, serving over 34 million insured users across multiple provinces [17] Group 2: Industry Engagement and Recognition - Yidu Technology was recognized as the only AI healthcare company in the "Best IR Hong Kong Company" category at the 8th New Fortune Best IR Awards, reflecting its strong governance and investor relations [19] - The company actively participated in various high-profile industry conferences, sharing insights on how AI can empower public health and improve clinical trial processes [3][5][9] Group 3: Technological Innovations - Yidu Technology showcased its AI-driven solutions for clinical trials at the Future XDC New Drug Conference, emphasizing its end-to-end intelligent research ecosystem [5] - The company reported a significant increase in patient recruitment accuracy for clinical trials, achieving over three times improvement through its self-developed medical large model [13] - The establishment of the "AI Middle Platform" aims to address challenges in hospital smart applications, facilitating a comprehensive digital transformation in healthcare [15] Group 4: Market Position and Future Outlook - Yidu Technology's core advantages in AI healthcare have been recognized by multiple securities firms, with ratings ranging from "Buy" to "Outperform the Market," indicating strong growth potential [22] - The company is positioned to benefit from the increasing adoption of AI technologies in Chinese hospitals, supported by government initiatives [22]

Group 1 - The core viewpoint of the report is that Yidu Technology (医渡科技) is a leading player in the AI healthcare sector in China, receiving an "outperform" rating with a target price of HKD 6.75 [1] - Yidu Technology has developed a robust algorithm engine, YiduCore, which has processed over 5.5 billion medical records, significantly surpassing its competitors [2] - The company's AI-driven solutions have been validated through various assessments, ranking first in multiple standardized evaluations, indicating its technological and medical knowledge advantages [2] Group 2 - The Chinese government's increasing support for AI in healthcare is expected to accelerate industry growth, with new guidelines encouraging the use of AI in medical practices [3] - Yidu Technology is positioned to benefit directly from the trend of hospitals adopting AI technologies, having developed its own core hospital management system [3] - The company has successfully implemented its AI solutions in nearly 30 top medical institutions across China, showcasing its capability to drive deep applications in the healthcare sector [3]

Core Insights - Yidu Technology (2158.HK) has been recognized as one of the "Best IR Hong Kong Companies" by New Fortune, marking the second time the company has received this award and highlighting its governance, investor relations management, and long-term value [2][4] Group 1: Award Recognition - The award reflects the deep recognition from the capital market and investment community regarding the company's governance capabilities and investor relations management [2][4] - Yidu Technology is the only company in the AI medical sector to be included in this prestigious list [2] Group 2: Evaluation Process - The selection process involved an objective quantitative assessment, narrowing down from 326 candidates to the top 60% for final evaluation [4] - A diverse jury composed of regulatory representatives, professional analysts, institutional investors, financial media, and experts conducted the final voting [4] Group 3: Investor Relations Management - Since its listing in Hong Kong in 2021, Yidu Technology has prioritized investor relations through various activities such as performance briefings, technology open days, and investor days [5] - The company has maintained strong communication channels, including investor hotlines and emails, to provide timely updates on business progress [5] Group 4: Technological Innovation - Yidu Technology is a leading player in China's AI medical field, driven by its core algorithm engine, "YiduCore," which has processed over 5.5 billion medical records [5][6] - The company has established an ecosystem covering 2,800 hospitals, leading the market in research business share and real-world research [5] Group 5: Future Outlook - The recent award underscores the strategic foresight of Yidu Technology's dual-driven approach of technological and capital value [6] - As AI medical technology transitions from validation to large-scale commercialization, the company aims to continue driving intelligent upgrades in the medical field, creating long-term value for shareholders and society [6]

Core Viewpoint - The Hang Seng Healthcare Index (HSHCI) has shown strong performance, with significant increases in constituent stocks and a notable rise in the Hang Seng Healthcare ETF, reflecting positive market sentiment and growth potential in the healthcare sector [3][4]. Group 1: Market Performance - As of April 25, 2025, the HSHCI rose by 1.77%, with notable gains from stocks such as Yidu Tech (10.15%) and WeDoctor (7.05%) [3]. - The Hang Seng Healthcare ETF (513060) opened high and increased by 2.68%, marking its fifth consecutive rise, with a latest price of 0.50 yuan [3]. - Over the past week, the Hang Seng Healthcare ETF has accumulated an 8.50% increase [3]. Group 2: Liquidity and Trading Volume - The Hang Seng Healthcare ETF had a turnover rate of 1.57% during the trading session, with a transaction volume of 183 million yuan [3]. - The ETF's average daily trading volume over the past month was 2.072 billion yuan, ranking first among comparable funds [3]. Group 3: Policy and Industry Outlook - On April 24, 2025, the Ministry of Industry and Information Technology and six other departments issued a notice on the "Implementation Plan for the Digital Transformation of the Pharmaceutical Industry (2025-2030)," aimed at enhancing the integration of AI and new information technologies within the pharmaceutical industry [3]. Group 4: Fund Performance and Metrics - The Hang Seng Healthcare ETF has seen a net asset growth of 715 million yuan over the past year, ranking in the top third among comparable funds [4]. - As of April 24, 2025, the ETF's net value increased by 41.16% over the past year, with a maximum monthly return of 28.34% since inception [4]. - The ETF's Sharpe ratio was reported at 1.34, indicating strong risk-adjusted returns [5]. Group 5: Valuation and Holdings - The latest price-to-earnings ratio (PE-TTM) for the HSHCI is 25.11, which is below 92.78% of the historical data over the past year, indicating a low valuation [5]. - The top ten weighted stocks in the HSHCI account for 57.54% of the index, with companies like BeiGene and WuXi Biologics being significant contributors [5].

Group 1 - The core viewpoint of the article highlights the positive market response to the announcement of the "Pharmaceutical Industry Digital Transformation Implementation Plan (2025-2030)" by the Ministry of Industry and Information Technology and six other departments, which emphasizes the integration of artificial intelligence in the pharmaceutical sector [1] - Companies such as Yidu Tech (02158.HK), Jingtai Holdings (02228.HK), Yimai Tong (02192.HK), and MicroPort Scientific Corporation-B (02252.HK) experienced significant stock price increases, with Yidu Tech rising by 6.27%, Jingtai Holdings by 4.08%, Yimai Tong by 2.13%, and MicroPort by 1.86% following the news [1] - The plan encourages the establishment of innovative platforms for pharmaceutical large models, promoting collaborative research and development of technology products and regulatory science within the industry [1] Group 2 - The initiative aims to strengthen the construction of standards, norms, technological ethics, application safety, and risk management in the pharmaceutical industry [1] - The focus on artificial intelligence applications is expected to enhance the overall efficiency and innovation capacity of the pharmaceutical sector [1]

Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of 7.00 HKD based on a 2026FY price-to-sales ratio of 7.7x [4]. Core Insights - The AI+ healthcare market is expected to grow rapidly, with specialized diagnostic products aligning well with hospital needs, driven by advancements in AI technology and supportive policies [15][21]. - The company, Yidu Technology, is a leading player in the AI+ healthcare sector, having developed its core AI algorithm, YiduCore, through extensive collaboration with top hospitals [3][30]. - The company has accumulated significant data processing experience, having handled over 11 billion patient interactions and 55 billion medical records, positioning it favorably in the industry [3][45]. Summary by Sections Investment Logic - The commercialization of AI in healthcare is accelerating, with 46 companies obtaining algorithm registrations related to health by the end of 2024 [2]. - AI-assisted specialized diagnosis and imaging recognition are particularly aligned with hospitals' revenue and reputation goals, leading to increased IT budget allocations [2]. Financial Performance and Forecast - The company is projected to achieve revenues of 777 million, 891 million, and 1.069 billion CNY for FY 2025, FY 2026, and FY 2027, respectively, with corresponding year-on-year growth rates of -3.78%, 14.69%, and 20.04% [4][8]. - The net profit forecast for the same period is -106 million, -50 million, and 6 million CNY, indicating a trend towards profitability by FY 2027 [4][8]. Business Structure and Adjustments - The company has a flexible business structure, allowing it to adjust its product offerings in response to market demands, which is expected to lead to continuous improvement in profitability [53]. - The company serves over 2,800 hospitals and has established partnerships with 105 top hospitals, maintaining a leading market share in clinical research [9][33]. AI Platform and Model Development - The company launched an AI platform that integrates various medical applications, which has been deployed in over 20 medical institutions, supporting revenue growth [3][48]. - YiduCore's capabilities have been validated through multiple industry assessments, ranking first in various evaluations, which enhances the company's competitive edge [45][52]. Market Trends and Opportunities - The AI+ healthcare market is witnessing a surge in demand for specialized diagnostic solutions, driven by technological advancements and favorable regulatory environments [15][21]. - The company is well-positioned to capitalize on this growth due to its extensive data processing capabilities and established relationships with leading healthcare institutions [30][41].

Financial Performance - Total revenue for the first half of FY24 was RMB 329.4 million, a decrease of 7.6% compared to RMB 356.5 million in FY23[11]. - Gross profit for the first half of FY24 was RMB 117.4 million, down 13.8% from RMB 136.2 million in FY23[11]. - The company's loss narrowed to RMB 56.4 million, a year-on-year reduction of 29.2%, attributed to improved internal operational efficiency and enhanced synergy among business segments[38]. - Revenue decreased by 7.6% from RMB 356.5 million for the six months ended September 30, 2023, to RMB 329.4 million for the six months ended September 30, 2024[94]. - Revenue from life sciences solutions decreased by 15.0% from RMB 170.2 million to RMB 144.6 million, primarily due to challenging external conditions[95]. - Revenue from health management platform solutions decreased by 12.4% from RMB 58.4 million to RMB 51.1 million, mainly due to changes in product mix[95]. - Overall gross profit decreased from RMB 136.2 million to RMB 117.4 million, with gross margin declining from 38.2% to 35.6%[98]. - The company reported a net loss of RMB 56,362,000 for the six months ended September 30, 2024, compared to a net loss of RMB 79,555,000 for the same period in 2023[196]. Client and Market Engagement - The number of life sciences clients reached 71, with an average revenue per client increasing by 57% year-on-year[21]. - The company served over 2,800 hospitals and provided solutions to 105 top hospitals and 40 regulatory bodies in China[21]. - The revenue retention rate for the top 10 clients was 117.45%, indicating strong customer loyalty[21]. - Active users on the health management platform who completed at least one transaction exceeded 24 million[65]. - The "Huiminbao" project has over 600,000 participants in its second phase, with a participation rate exceeding 35% and online enrollment accounting for over 88%[61]. Product and Service Development - Revenue from the big data platform and solutions segment increased by 4.5% to RMB 133.7 million, while the life sciences solutions segment saw a decline of 15.0% to RMB 144.6 million[11]. - The company launched a "big data + large language model" dual platform solution to assist clients in research and clinical studies[21]. - The company has developed a large language model with 70 billion parameters, focusing on enhancing both general and specialized medical capabilities[25]. - YiduCore has built a disease knowledge graph that covers all known diseases, facilitating deeper analysis of complex disease characteristics[23]. - The company has established a comprehensive solution across the healthcare ecosystem, integrating AI capabilities in medical, pharmaceutical, and insurance sectors[25]. Operational Efficiency - Operating loss improved by 30.7% to RMB 54.3 million, compared to a loss of RMB 78.3 million in the same period last year[11]. - Sales and marketing expenses decreased by 30.1% to RMB 72.4 million, representing 22.0% of revenue, down from 29.1% in the previous period[106]. - Administrative expenses decreased by 3.7% to RMB 57.2 million, with the percentage of revenue increasing from 16.7% to 17.4%[107][108]. - R&D expenses decreased by 9.6% from RMB 103.6 million to RMB 93.7 million, attributed to reduced employee benefits and expenses[101]. - The total number of employees as of September 30, 2024, was 866, with a total salary cost of RMB 187.7 million, down from RMB 262.5 million in the previous period[115]. Corporate Governance and Shareholder Information - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[140]. - The company has complied with the corporate governance code, with some deviations noted regarding dividend policy[141]. - The company has a total of 418,565,575 shares held by Ms. Gong and Mr. Xu, representing 39.42% of the equity[134]. - The company has not adopted a dividend policy at this stage, focusing on business development and growth funding[141]. - The company plans to utilize 35% of the net proceeds from the global offering for strengthening core capabilities and another 35% for further business expansion[131].

Financial Data and Key Metrics Changes - The total revenue for the first half of the fiscal year 2025 was RMB 329 million, a decrease of 7.6% compared to the same period last year [5] - The adjusted EBITDA for existing business management shifted from a loss of RMB 890,000 in the same period last year to a profit of RMB 2.732 million, marking the best performance in historical terms [6] - The net loss narrowed from RMB 79.56 million in the same period last year to RMB 56.36 million, a reduction of 29.2% [6] Business Line Data and Key Metrics Changes - Revenue from the big data platform and solutions increased by 4.5% year-on-year [6] - Revenue from life sciences solutions decreased by 15.0% due to external environmental challenges [6] - Revenue from health management platform and solutions declined by 12.4% as the company focused on product portfolio adjustments [6] Market Data and Key Metrics Changes - The company has established a strong presence in the healthcare sector, providing data-driven solutions to regulatory agencies and policymakers across 30 cities and provinces [11] - The company has successfully implemented benchmark projects in major Chinese cities, enhancing its market leadership [12] Company Strategy and Development Direction - The company is focusing on AI-driven solutions across multiple business scenarios, including healthcare, pharmaceuticals, and health insurance [2] - The strategy includes developing public and private versions of AI models tailored for different user needs, enhancing user innovation and platform diversity [2][3] - The company aims to leverage its data governance capabilities to drive the data economy, particularly in healthcare [3] Management's Comments on Operating Environment and Future Outlook - Management believes that the current stock price is significantly undervalued and has engaged in stock buybacks to support the share price [8] - The company is optimistic about its future growth prospects, particularly in the healthcare sector, driven by its innovative AI solutions [8] Other Important Information - The company has accumulated a significant amount of medical data, which is crucial for its algorithmic models and applications [9] - The company has a strong client base in the life sciences sector, with 71 clients, including 16 of the top 20 multinational pharmaceutical companies [13] Q&A Session Summary Question: What are the company's future growth strategies? - The company plans to enhance its AI capabilities and expand its applications in healthcare, pharmaceuticals, and insurance sectors, focusing on user-driven solutions [2][3] Question: How does the company view its current stock valuation? - Management believes the stock is undervalued and has initiated buybacks to support the share price, indicating confidence in future performance [8] Question: What are the key challenges faced in the life sciences segment? - The life sciences solutions segment has faced a 15% decline due to external environmental challenges impacting the industry [6]

Investment Rating - Buy (Maintained) [1] Core Views - YiduCore empowers full-scenario solutions, driving continuous profitability with adjusted EBITDA of RMB 27 million in FY1H25 [1] - Revenue declined by 7.6% YoY to RMB 329 million, primarily due to lower income from Life Science Solutions (LSS) and Health Management Platform and Solutions (HMPS) segments [1] - Gross margin decreased by 2.6pct to 35.6%, mainly due to changes in product mix [1] - Net loss attributable to shareholders narrowed to RMB 43 million from RMB 76 million in the same period last year [1] Business Segment Performance Big Data Platform Solutions (BDPS) - Revenue increased by 4.5% YoY to RMB 134 million, driven by YiduCore's full-scenario solutions [1] - Gross margin decreased by 7.8pct to 37.4% due to product mix changes [1] - YiduCore analyzed over 5.5 billion medical records from 1.1 billion patients and covered more than 2,800 hospitals [1] - The company launched a "Big Data + Large Language Model" dual-middle platform solution, focusing on a 70-billion-parameter model for medical vertical applications [1] Life Science Solutions (LSS) - Revenue decreased by 15.0% YoY to RMB 145 million, but gross margin improved by 1.9pct to 29.7% [1] - The top 20 multinational pharmaceutical companies are clients, with a customer retention rate of 117.45% [1] - The company's clinical trial solutions address industry pain points such as long timelines, high costs, and low success rates in drug development [1] Health Management Platform and Solutions (HMPS) - Revenue decreased by 12.4% YoY to RMB 51 million, with gross margin declining by 5.4pct to 47.8% [1] - The company maintained its leading position in "Huiminbao" business in core Chinese cities, with over 90% of users located in the top 15 GDP-ranked provinces [1] - The "Happy Health Tech" mini-program, integrated with the "Huiminbao" platform, was launched to enhance claims efficiency [1] Financial Forecasts and Valuation - Revenue forecasts for FY25-27 were revised downward by 11.0%/17.4%/23.3% to RMB 810/919/1,029 million due to underperformance in LSS and HMPS segments [1] - Adjusted EBITDA is expected to remain profitable, with net profit attributable to shareholders forecasted at RMB -187/-82/12 million for FY25-27 [1] - The "Buy" rating is maintained, supported by YiduCore's AI medical brain and full-scenario solutions [1] Financial Highlights - Total revenue for FY1H25 was RMB 329 million, with a gross profit of RMB 117 million [1] - Operating loss narrowed to RMB 228 million from RMB 630 million in FY2023 [3] - Net cash position stood at RMB 2,937 million as of FY2025E [5] - Free cash flow improved to RMB -362 million in FY2025E from RMB -751 million in FY2024 [7]

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers in Southeast Asia to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D spending increased by 10% to accelerate innovation in the healthcare sector [8]. - A new line of eco-friendly products was introduced, receiving positive customer feedback [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee training programs were expanded, leading to a 10% increase in productivity [12]. Topic 5: Risk Management - Identified potential risks in the supply chain due to geopolitical tensions and implemented contingency plans [13]. - Increased cybersecurity measures to protect against data breaches, with a 30% reduction in incidents [14]. - Conducted regular audits to ensure compliance with international regulations [15]. Topic 6: Sustainability Initiatives - Achieved a 20% reduction in carbon emissions through the adoption of renewable energy sources [16]. - Launched a recycling program that resulted in a 15% decrease in waste production [17]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [18].