Citigroup, Yamato, and Goldman Sachs have successively published research reports, all of which have given Yidu Technology a “buy” rating. The target prices given by the three major banks are all significantly higher than the current stock price of the company.
Gross margin reached a record high, and net loss narrowed sharply by 75.9% year on year... Yidu Technology (02158.HK), a leading company in China's medical intelligence industry, recently announced results for the first half of fiscal year 2024 (six months ending September 30, 2023) attracted a wave of attention, and many investment banking institutions also published research reports one after another to maintain their “buy” ratings.
Financial reports show that in the first half of fiscal year 2024, Yidu Technology's gross margin reached 38.2%, up 12.1 percentage points year on year, a record high; total operating expenses as a percentage of revenue fell 12.8 percentage points year on year, and adjusted net loss narrowed sharply by 75.9% year on year to 54.1 million yuan.
The Zhitong Finance app learned that after the performance report was released, Citigroup, Daiwa, and Goldman Sachs successively published research reports, all of which gave Yidu Technology a “buy” rating. The target prices given by the three major banks are all significantly higher than the current stock price of the company.
Citi pointed out that the deep insight and knowledge accumulated by the “intelligent medical brain” yiduCore is the core competitive advantage of Yidu Technology. Based on the highly scalable and flexible YiDuCore, Yidu Technology has a strong network effect in the medical ecosystem and will further develop and expand its business.
Yamato said that the increase in gross margin and the sharp narrowing of adjusted net losses of Yidu Technology are better than the general expectations of the market, and it is expected that the company's large-scale model initiatives in the medical vertical field will promote customer acquisition and retention. Goldman Sachs, on the other hand, believes that Yidu Technology's performance in the first half of fiscal year 2024 is “a steady gross margin trend and strict operational control.”
At the performance conference on November 30, the management of Yidu Technology pointed out that the net market ratio has now dropped 1.03 times. From another perspective, even with very conservative calculations, based only on the latest valuation of international business and the company's important asset reserves, regardless of any domestic business, the company's stock price (calculated at the closing price on November 29) is about 50% higher than the average price for the past 60 days. Therefore, management believes that no matter what angle you look at it from, the current stock price of Yidu Technology is seriously underestimated.