AI medical concept landing? YIDU TECH achieves annual profitability for the first time

YIDU TECH forecasts its first annual profit, becoming one of the few profitable cases in medical AI. But does this mean the industry has crossed the commercialization threshold? The market remains cautious. Key Points: YIDU TECH expects to record a net profit of HKD 41 million to HKD 56 million for the last fiscal year, achieving its first annual profit. Its AI products have been called upon tens of thousands of times at the single hospital level. Li Shida In recent years, medical AI has always been at the center of technological hype but is often seen as difficult to achieve profitability. Until recently, YIDU TECH Co., Ltd. (2158.HK) announced it expects to achieve its first annual profit since its establishment over 11 years ago, which could be a key turning point for the entire medical AI industry. The company expects to turn around from a net loss of approximately HKD 118 million in the previous year to a net profit of HKD 41 million to HKD 56 million (approximately USD 8.2 million) for the fiscal year ending March 31, 2026. The company attributes this turnaround to two factors: first, the significant increase in new orders driven by the integration of AI capabilities into products; second, the enhancement of product added value and operational efficiency leading to an increase in gross margin. This profitability is not without signs; looking back at the company's interim results for the period ending September 2025, the turning point has already begun to emerge. During this period, revenue reached HKD 358 million, a year-on-year increase of 8.7%, ending the previous contraction trend; gross margin increased from 35.6% to 37.4%; more importantly, operating losses narrowed significantly by 71% to HKD 15.71 million, and net losses also reduced by 72% to HKD 15.76 million. Structurally, the interim results show that revenue from big data platforms and solutions increased by 14.6% year-on-year, while the health management segment recorded a growth of 30.3%, and life science solutions aimed at pharmaceutical companies saw a slight decline of 4.4%. This indicates that the main driving force for growth is gradually shifting towards businesses with more applicable scenarios, such as hospitals and payment sectors, rather than traditional pharmaceutical services. In terms of revenue share, the big data platform remains the largest source. As large models transition from capability competition to practical application, the market is more concerned with whether AI can be embedded into actual processes and generate returns. In the medical field, only by entering diagnosis, research, or payment stages can a stable business model be established. Currently, there are relatively few profitable cases among Chinese medical AI companies. For example, iFlytek Medical (2506.HK) focuses mainly on grassroots medical care and voice interaction scenarios, rapidly expanding through standardized tools, but still recorded a loss of HKD 64.79 million in 2025; Eagle Eye Technology (2251.HK) focuses on single-point applications such as fundus image recognition, with a relatively clear business model, but its application scenarios are quite concentrated, resulting in a loss of approximately HKD 24.97 million in 2025. YIDU TECH's path appears to be different. The company initially focused on medical data platforms and specialized disease databases, accumulating a large amount of structured data and hospital client resources. In recent years, it has further launched clinical Copilot and evidence-based intelligent agents "ZhiXun," embedding AI into doctors' workflows, shifting from merely providing information to participating in clinical decision-making In paid scenarios, related products have gradually moved from pilot testing to actual use. The mid-term report shows that the clinical Copilot and evidence-based intelligent agents have reached tens of thousands of calls at the single hospital level, with some hospitals using them nearly a thousand times daily, indicating that they have been integrated into daily diagnosis and treatment processes rather than merely existing as auxiliary tools. This high-frequency usage is a key prerequisite for whether medical AI can form stable payments. At the same time, the company's service network has covered over 10,000 medical institutions and established partnerships with more than a hundred top hospitals, demonstrating a certain level of replicability for its products, although the correlation between call frequency and actual payment conversion has not yet been fully disclosed. Profitability to be Verified However, from the mid-term data, the company's revenue growth rate remains in single digits and has not shown significant expansion. In the absence of a continuous profit record, the specific sources of annual profits still need further breakdown, making it difficult to determine whether it has entered a stable phase. More importantly, the implementation of medical AI heavily relies on hospital procurement rhythms and policy promotion, and the expansion process may be limited and progress slowly. This means that rather than saying the company has entered a stable profit phase, it is more accurate to say it is in a transitional period where the business model is beginning to take shape but still needs verification. This also makes YIDU TECH's first profit more like a sample rather than a trend, proving that medical AI can monetize in specific scenarios, but does not mean the entire industry has simultaneously entered a profit cycle. Nevertheless, the market views this profit surprise report positively. On the first trading day after the profit surprise announcement, YIDU TECH's stock price rose by 3.8% to close at HKD 6.3, recording an 18.4% increase year-to-date, with the overall response not particularly strong. In terms of price-to-sales ratio, YIDU TECH is currently about 7.5 times, roughly in the same range as iFlytek Medical at about 8 times and Eagle Eye Technology at about 6 times, indicating that the market's pricing for this type of company still mainly revolves around revenue scale and growth potential rather than profitability itself. Although medical AI has begun to achieve revenue and profits in certain scenarios, the monetization cycle is relatively long, and significant differences between different hospitals make it uncertain whether the business model can be stably replicated. For investors, YIDU TECH currently appears to be in a business model verification period rather than a mature growth story. If it can continue to record profits in the coming quarters, accompanied by accelerated revenue growth, its valuation may have further upward potential; conversely, if profitability is difficult to sustain, the current level may have already reflected most expectations