The stock price is undervalued! YIDU TECH (02158) signs total return swap to hedge against appreciation risk.

YIDU TECH (02158) announced on the 23rd that its subsidiary has entered into a total return swap transaction with a notional amount of HK$54.4047 million with Goldman Sachs, with a term of approximately 3 years. The announcement stated that the purpose of this total return swap transaction is to hedge the risk of YIDU TECH's future stock price appreciation. The board of directors believes that this transaction can effectively reduce the costs and cash outflows associated with purchasing shares, especially the risk of price increase in the share incentive plan after the initial public offering. According to observers, whether from the perspective of price-to-book ratio, the latest valuation of international business, or the significant asset reserves of the company, YIDU TECH's stock price is severely undervalued. Since the beginning of this year, YIDU TECH has actively implemented share repurchase measures to boost investor confidence, especially since September 26, YIDU TECH has continued to repurchase shares, successfully repurchasing over 3.86 million ordinary shares through 9 repurchase transactions, totaling over HK$22 million. Analysts believe that by signing the total return swap transaction at the current time, YIDU TECH's management shows a positive outlook on the potential appreciation of the company's stock price. By acquiring stocks at a low point, the company can hedge against the risk of increased costs due to stock price appreciation, reflecting the company's proactive risk management strategy.