Citibank research report: YIDU TECH (02158) has strong AI technology and business barriers, target price raised to HK$11.

Recently, Citigroup released a research report maintaining a "buy" rating on YIDU TECH (02158) and raised its target price to 11 Hong Kong dollars, expecting a potential price increase of over 96% in the future. As a leading enterprise in the domestic AI medical field, YIDU TECH is occupying a core position in the wave of construction of medical AI infrastructure with the help of favorable policies, deep industry accumulation, and a comprehensive product layout. The research report pointed out that under the strong macro-policy of "artificial intelligence + medical health" promoted by the country, YIDU TECH, as a core participant in this field, has deeply embedded itself in national AI medical application pilot base projects in Beijing, Henan, and other places, and has developed products such as "Doctor Copilot," significantly improving the operational efficiency of medical institutions and reducing the burden on medical staff. The policy clearly states that multiple national pilot bases will be established by 2027, and AI technology will be widely covered by secondary and above hospitals by 2030, providing the company with a clear growth path for business expansion. At the same time, the company's WeChat Mini Program "Yi Du Qian Yu" for consumers has also demonstrated solid technical strength. In scene tests conducted by Citigroup, its accuracy and traceability performance have stood out, placing it in the top tier with products such as Ant Financial's Aifu and iFlytek's Xiaoyi, providing users with professional medical consultation support and forming a collaborative layout between To-G (government and hospital-oriented) and To-C businesses. The report especially recognized the company's strong accumulation in medical data governance and knowledge construction. Citigroup believes that YIDU TECH's large-scale and authoritative data, derived from cooperation with top hospitals, constitute a unique advantage. This ability to train models based on high-quality data from the real world is the cornerstone for medical AI models to achieve precise diagnosis and decision-making assistance. Compared to consumer-facing applications still in the exploratory stage, the business sectors targeting government and hospitals show more predictable profit potential, benefiting directly from the increase in hospital AI budgets and national project tenders. Based on its solid To-G business model and clear growth path, Citigroup has raised its financial forecasts for the company, expecting its big data platform revenue to achieve year-on-year growth of 17% and 30% in the fiscal years 2026 and 2027, respectively, and potentially reach breakeven in the fiscal year 2026. Based on this, Citigroup has raised YIDU TECH's target price to 11 Hong Kong dollars.