YIDU TECH (02158) AI healthcare value reevaluation narrative behind 3-4 times PE ratio.

When a company spends 11 years building medical AI infrastructure, the market often lacks patience. But when it achieves annual profitability for the first time and half-year profits exceed 70 million yuan, the story is completely rewritten. As of 3 pm on April 24th, among the top ten brokers buying YIDU TECH (02158), a leading AI healthcare company, foreign investors accounted for seven of the top seven positions, with the top six positions all dominated by foreign investment institutions, including JP Morgan and Morgan Stanley with net purchases of over 500,000 shares. This is just a glimpse of foreign investment in YIDU TECH after the company announced its profit joy on April 20th. According to the positive profit forecast, YIDU TECH is expected to achieve a net profit of 55 to 70 million yuan for the 2026 fiscal year (ending March 31, 2026), marking its first annual profit in its 11-year history. On the surface, the 55-70 million yuan annual profit is a leap from losses to profits, but a deeper analysis of the financial data reveals a more impressive picture. In the first half of the 2026 fiscal year, YIDU TECH had a net loss of 15.76 million yuan, which means the company achieved a staggering profit of 70.76 to 85.76 million yuan in the second half alone. This "snowballing" profit growth pattern, once established, should not be underestimated. Even with conservative estimates, maintaining the profit level in the second half of the 2026 fiscal year, YIDU TECH is expected to achieve an annual profit of 141 million to 170 million yuan in the 2027 fiscal year. Based on the current stock price of around 6.2 Hong Kong dollars, the corresponding dynamic price-earnings ratio (PE) of this profit forecast is only 3 to 4 times. This presents a significant "valuation gap" compared to the market's current valuation of AI concepts, especially AI healthcare companies with core technology and data barriers, which often have a PE ratio of over 10 times. From a financial perspective alone, YIDU TECH seems to have at least doubled its upside potential. The market's intuition is always sharp. The latest trading data shows that in the past five trading days, the top seven seats in terms of buying amount are all foreign institutions. This undoubtedly represents foreign investors' "vote of confidence" in YIDU TECH's future performance and growth potential. They may see deeper value beyond short-term profits. As a long-time supporter, Citibank reiterated its "buy" rating and set a target price of 11 Hong Kong dollars, nearly an 80% increase from the current stock price, after the profit joy announcement. This confidence is not without basis. Shortly after the profit joy, YIDU TECH announced that it had won the "Hainan Smart Health Island Construction Project" with a bid amount of about 14.76 million yuan. Combined with the previous bids for the Beijing Oncology Hospital (about 4.88 million yuan) and the Hainan Provincial Infectious Disease Monitoring and Early Warning Platform (about 12.89 million yuan), the company has disclosed nearly 40 million yuan in new order amounts since April alone. Although it is unclear how this figure ranks in historical terms, it is undoubtedly one of the highest monthly order amounts in the company's history. The flurry of new orders combined with the profit joy announcement has created a strong resonance. This signals at least two key messages: First, YIDU TECH's AI business model is being widely recognized by the market, transitioning from successful "technology verification" to "commercial realization," with contract orders starting to "take off," providing solid support for performance in the second half of the year; Second, the company's choice to release a series of positive news at this specific moment, combined with the recent intensive buybacks of nearly 240 million Hong Kong dollars and over 2% of its stock, may not only be a natural manifestation of improving performance, but also likely reflects the management's far-sighted considerations in the capital market. The core value of YIDU TECH lies in its YiduCore data intelligence infrastructure built over more than a decade. This platform has processed nearly 7 billion medical records and serves over 10,000 healthcare institutions. This deep data barrier is difficult for competitors to replicate in the short term. When AI technology is deeply integrated into core scenarios such as clinical decision-making, public health emergencies, and pharmaceutical research and development, the value generated will far exceed simple software sales. YIDU TECH's founder, Gong Rujing, emphasized in an internal sharing session that profitability is not the financial endpoint, but a signal that a medical evidence infrastructure that has taken more than ten years to build is beginning to have self-sustaining capabilities. This transition from "burning money on R&D" to "self-generating" is the turning point that capital markets have been eagerly anticipating. From "burning money" to "self-generating," YIDU TECH has answered with a profit joy, signaling the arrival of the first year of commercialization of AI healthcare. The currently significantly undervalued stock price may be the best entry ticket for patient investors given the promising outlook. In the future, as more high-value-added AI products land and are replicated on a larger scale, the company, which has just achieved profitability, is only beginning its journey of revaluation in terms of its value.