Amidst the wave of AI technology deeply empowering the healthcare sector, YIDU TECH has once again demonstrated its strategic ambition. The company issued a voluntary announcement on June 1st, revealing its intention to acquire 100% of the equity in a leading online doctor platform for approximately RMB 400 million. This move swiftly captured the attention of the capital markets, with the international investment bank Citi subsequently issuing a research report assigning the company a "Buy" rating and setting a target price of HK$11.
Strategic Acquisition: Securing 3.5 Million Doctor Resources and Integrating the "AI+Decision" Pathway
According to the announcement, YIDU TECH has entered into a non-legally binding memorandum of understanding with an independent third party for the proposed acquisition. The target company primarily operates a large-scale online doctor platform that possesses significant barriers to entry within the medical professional field. Key data disclosed in the announcement shows that as of March 31, 2026, the platform had accumulated approximately 11 million registered users, of which a substantial 3.5 million were practicing doctors. At a time when the internet healthcare industry commonly faces the challenge of platforms being "built but not used," this vast network of active doctors constitutes the core value of this transaction.
YIDU TECH believes that, once implemented, this acquisition will achieve a "powerful synergy" between technology and real-world application scenarios. The company intends to leverage its leading AI capabilities, combined with the target company's extensive doctor network and established medical service channels, to drive the large-scale adoption of its core product, "Yidu Smart Pathway." Notably, "Yidu Smart Pathway" is an evidence-based AI assistant designed specifically for doctors, containing over 30,000 authoritative clinical guidelines and more than 5 million medical literature references, capable of responding to clinical diagnosis, treatment, and research needs in seconds. Through this acquisition, YIDU TECH not only facilitates the implementation of its "AI tool" but also gains direct access to doctors' workflows, aiming to build a commercial closed loop of "technology + channels."
Financial Highlights: High Growth, Strong Profitability, Acquisition Value Stands Out
From a financial perspective, this is not only a strategic synergy but also a transaction that promises to balance growth and profitability. YIDU TECH's announcement indicates that the target company's core business has achieved stable and high-speed profitability. For the fiscal year ended December 31, 2025, core business revenue was approximately RMB 167 million, with a net profit of about RMB 53 million, representing a significant year-on-year increase of 45.5%. Net cash flow from operating activities was approximately RMB 14 million.
Citi's subsequent research report noted that the proposed acquisition consideration is around RMB 400 million, corresponding to a price-to-sales (P/S) ratio of only 2.4 times and a price-to-earnings (P/E) ratio of only 7.5 times. Analysis suggests this valuation level is highly attractive within the current AI healthcare sector and is expected to enhance the listed company's performance.
Fundamental Support: First Full-Year Profit, AI-Driven Performance Inflection Point
This acquisition coincides with a historic turning point in YIDU TECH's fundamentals. Shortly before, on April 20th, YIDU TECH issued a positive profit alert, forecasting a net profit of between approximately RMB 55 million and RMB 70 million for the fiscal year ending March 31, 2026. This marks the company's first full-year net profit since its establishment, representing a significant reversal from the net loss of RMB 135 million in the 2025 fiscal year.
The turnaround in performance is primarily attributed to the full-scale commercialization of the company's AI capabilities. Since its launch, "Yidu Smart Pathway" attracted over 6,000 medical professionals during its internal testing phase. Its evidence-based engine has been deployed in more than 40 top-tier hospitals and has been deeply involved in over 500,000 clinical decision-making instances. Furthermore, the company's recent successful bid for a large model project at Beijing Cancer Hospital further validates the essential nature of its technology in serious medical scenarios.
Institutional Viewpoint: Citi Bullish on "AI+Doctor" Ecosystem, Assigns "Buy" Rating
Based on the above analysis, Citi's research report, utilizing a sum-of-the-parts (SOTP) valuation, noted that YIDU TECH's various business segments possess scalable business models and the company maintains ample net cash reserves. Citi believes this potential acquisition will significantly strengthen YIDU TECH's connection with the doctor community. This not only promotes the penetration of "Yidu Smart Pathway" in both B-end (hospitals) and C-end (doctors) but also holds the potential to explore new token-based payment models, opening a second growth curve.
Consequently, Citi assigned YIDU TECH a "Buy" rating with a target price of HK$11. At the time of reporting, YIDU TECH's market capitalization remains around HK$5.5 billion. With the progression of this acquisition and the continued implementation of AI products, market attention is expected to intensify.
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