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 Insights - The report highlights the changes in the Hong Kong Stock Connect holdings, indicating significant increases and decreases in ownership percentages for various companies [1][2][3] Group 1: Increased Holdings - Spring Medical (01858) saw the largest increase in holdings, up by 1.40%, bringing its total to 45.06% [2] - Yidu Tech (02158) experienced a 1.19% increase, with a new holding percentage of 20.69% [2] - Haotian International Investment (01341) increased by 1.14%, reaching a holding of 12.52% [2] - Other notable increases include Rongchang Bio (09995) at +0.65% (39.90%) and Chongqing Steel (01053) at +0.57% (27.51%) [2] Group 2: Decreased Holdings - Beijing Machinery (00187) had the largest decrease, down by 1.22% to 51.11% [2] - Hang Seng China Enterprises (02828) decreased by 0.67%, now at 0.59% [2] - First Tractor (00038) saw a reduction of 0.54%, with a holding of 51.88% [2] - Other significant decreases include Shandong Gold (01787) at -0.47% (50.26%) and Longyuan Power (00916) at -0.38% (49.85%) [2] Group 3: Five-Day Changes - Over the last five trading days, Beijing Machinery (00187) had the highest increase of 6.97%, now at 51.11% [3] - Chifeng Jilong Gold Mining (06693) increased by 6.85%, reaching 36.89% [3] - Boan Biotechnology (06955) rose by 4.29%, with a holding of 5.81% [3] - Significant decreases included Kelong Biotechnology (06990) at -3.02% (18.57%) and Hang Seng China Enterprises (02828) at -2.79% (0.59%) [3] Group 4: Twenty-Day Changes - In the last twenty days, October Rice (09676) saw the largest increase of 7.60%, now at 26.41% [4] - Dekang Agriculture (02419) increased by 4.67%, with a holding of 8.85% [4] - Yunding New Drug-B (01952) rose by 4.50%, reaching 48.80% [4] - The largest decrease was seen in Poly Property (06049) at -27.38% (21.97%) [4]

Group 1: Hong Kong Stock Market Performance - The Hang Seng Index rose by 1.36%, gaining 297 points to close at 22,206 points, while the Hang Seng Tech Index increased by 1.87% [1] - The early trading volume in the Hong Kong stock market reached HKD 116.4 billion [1] Group 2: Real Estate Sector - Foreign institutions are optimistic about the recovery of the Chinese real estate sector, with Citigroup strategists urging investors to increase their holdings in Chinese real estate stocks due to expected improvements in profitability from policy support and better management practices [1] - Kwan Hung Holdings surged over 43%, while other notable gains included Rongxin China up 17%, Greentown China up 5%, CIFI Holdings up 7.88%, Sunac China up 4.22%, and Longfor Group up 6.74% [1] Group 3: AI Medical Sector - AI medical concept stocks saw an uptick as seven departments jointly promoted AI empowerment across the pharmaceutical industry, with institutions optimistic about the accelerated trend in the AI medical industry [1] - Notable stock performances included iFlytek Medical Technology up 7.2%, Yidu Tech up 5.35%, Crystal Tech Holdings up 4.69%, and MicroPort Scientific up 4.07% [1] Group 4: Other Notable Stocks - Horizon Robotics rose over 7% following a strategic partnership with Bosch to develop an upgraded version of Bosch's advanced driver assistance system [2] - KPB Medical surged over 14%, with a cumulative increase of over 95% this week after its core product was approved for sale in China [3] - Xintai Medical increased by 3.88%, although the company indicated uncertainty regarding its sales growth targets [4] - Minmetals Resources rose over 5%, reporting a 76% year-on-year increase in copper production for the first quarter, with potential adjustments to production guidance [5] - Beike-W increased by 4.88%, as the real estate fundamentals became clearer, with institutions suggesting its stock price is entering a value range [6] - Global New Materials International saw a sharp rise of over 20% before settling at a 4% increase after acquiring Merck's global performance solutions business [7]

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]

Group 1 - The core viewpoint of the news is that the implementation plan for the digital transformation of the pharmaceutical industry in China aims to achieve comprehensive digitalization by 2030, enhancing innovation capabilities and establishing a complete industrial ecosystem [1][2] - The plan includes four major actions: empowering digital technology, promoting digital transformation, building a digital service system, and enhancing digital regulation, with 14 key tasks to improve the overall capability of the pharmaceutical industry's digital transformation [1][2] - The focus areas of the plan include pharmaceutical research and development, production, management decision-making, quality assurance, circulation and traceability, and contract research and production services, providing a clear pathway for collaboration between pharmaceutical companies and IT service providers [1][2] Group 2 - The release of the plan signifies a new phase of high-quality development driven by data and intelligent empowerment in the pharmaceutical industry, which is expected to reshape the industry landscape through technologies like AI in drug development and smart manufacturing [2] - The AI pharmaceutical market is projected to grow significantly, from $1.38 billion in 2023 to $2.994 billion by 2026, with a compound annual growth rate of 30.47% from 2021 to 2026 [3] - Major pharmaceutical companies are expected to enhance drug discovery efficiency by over 50% through AI integration, which will lead to better resource allocation in research and healthcare [3] Group 3 - Notable companies in the sector include WuXi AppTec, which is projected to achieve a revenue of 39.241 billion yuan in 2024, with a 5.2% year-on-year growth excluding COVID-19 projects [4] - Kanglong Chemical is expected to report a revenue of 12.276 billion yuan in 2024, reflecting a 6.39% year-on-year increase, while its net profit is anticipated to grow by 12.01% [4] - Yidu Technology focuses on AI in healthcare, providing innovative solutions across various fields, including public health and new drug development [4]

Summary of Conference Call Notes Company Overview - The company discussed is Yidu Technology, a pioneering innovator in the AI healthcare industry with a focus on deepening its expertise over the past decade [1][2]. Key Points and Arguments Industry and Data - Yidu Technology has accumulated 5.5 billion high-quality medical records, covering over 1.1 billion patient visits, which is a significant asset in the Chinese healthcare landscape where data is not typically available post-discharge [1][20]. - The company has developed a comprehensive disease knowledge graph that encompasses all known diseases, supported by various specialized datasets and models [2][19]. Product and Application - The company offers a range of products, including a project management platform and an AI middle platform, which have seen accelerated project orders and implementations since the Chinese New Year, with over 20 projects currently in progress [3][4]. - The AI middle platform integrates multiple open-source models and has already been implemented in several hospitals, demonstrating its practical application in real-world settings [3][10]. Market Position and Competition - Yidu Technology is positioned as a key player in the AI healthcare market, with a belief that the market is still in its early stages and not yet saturated with competition [8][24]. - The company emphasizes that its competitive edge lies in its extensive data accumulation, algorithmic depth, and application scenarios, which are superior to many competitors in the field [20][33]. Financial Performance and Growth - The company anticipates a 10% annual growth in paid services, with a current coverage of 2,800 hospitals, including 105 top-tier hospitals and over 40 regulatory government clients [4][29]. - There is an expectation of improved financial performance and profitability sooner than previously guided, with a focus on enhancing the gross margin through product mix adjustments [29][30]. Collaboration and Partnerships - Yidu Technology has established a deep partnership with Huawei, leveraging their chip technology and exploring further collaboration opportunities in the healthcare sector [6][7]. - The company is also exploring partnerships with various hospitals and government projects, indicating a robust pipeline of collaborative opportunities [9][16]. Challenges and Future Outlook - The company acknowledges challenges in expanding into lower-tier hospitals due to budget constraints but sees potential for future growth as technology costs decrease and demand for intelligent healthcare solutions increases [41][43]. - There is a strong belief that the AI healthcare market will continue to grow, driven by policy support and increasing hospital budgets for technology investments [16][17]. Miscellaneous Insights - The company has noted a significant increase in project budgets from hospitals and government clients, with some budgets rising from millions to tens of millions [16][17]. - Yidu Technology's AI capabilities are designed to assist in various clinical scenarios, including complex cases, showcasing the versatility and depth of its technology [12][36]. Conclusion Yidu Technology is positioned as a leader in the AI healthcare sector, with a strong foundation of data, innovative products, and strategic partnerships. The company is optimistic about future growth, driven by increasing demand for intelligent healthcare solutions and supportive policies.

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].