Yidu Tech Inc. (HKG:2158) Analysts Are Reducing Their Forecasts For This Year

One thing we could say about the analysts on Yidu Tech Inc. (HKG:2158) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the five analysts covering Yidu Tech are now predicting revenues of CN¥887m in 2025. If met, this would reflect a meaningful 9.9% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 15% per share from last year to CN¥0.16 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of CN¥1.0b and losses of CN¥0.082 per share in 2025. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Yidu Tech

The consensus price target fell 6.2% to CN¥6.04, implicitly signalling that lower earnings per share are a leading indicator for Yidu Tech's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Yidu Tech at CN¥7.44 per share, while the most bearish prices it at CN¥4.82. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yidu Tech's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Yidu Tech'shistorical trends, as the 9.9% annualised revenue growth to the end of 2025 is roughly in line with the 9.5% annual revenue growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 20% annually. So although Yidu Tech is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Yidu Tech. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Yidu Tech going out to 2027, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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