Yidu Tech (SEHK:2158) Loss Narrows to 88.9m CNY, Strengthening Bullish Turnaround Narrative

Yidu Tech (SEHK:2158) has released its results for the first half of 2026, posting total revenue of 743.6 million CNY and a net loss of 88.9 million CNY over the trailing twelve months. Looking back, the company previously reported 450.6 million CNY in revenue and a net loss of 119.2 million CNY in the second half of fiscal 2024. Margins remain under pressure as the path to profitability continues to shape investor sentiment around the company’s results.

See our full analysis for Yidu Tech.

Next, we will see how these numbers compare against the prevailing market narratives and where investor perspectives might shift in light of the latest update.

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Losses Narrow Even As Revenue Climbs

• Net loss for the trailing twelve months came in at 88.9 million CNY, a clear reduction compared to 119.2 million CNY in the second half of fiscal 2024, showing progress even as revenue expanded.
• What’s surprising is that despite top-line growth, consensus narrative says Yidu Tech’s reduction in losses over the past five years (a 73.9% annual decline) and forecasts for earnings to swing positive within three years put it ahead of most unprofitable sector peers.
• The forecasted 115.2% annual earnings growth places Yidu Tech in a unique category, supporting the view that the pace of loss reduction is meaningful and not just incremental.
• However, the fact that the company remains unprofitable will keep short-term focused investors cautious until break-even is achieved.

See how balanced views on Yidu Tech’s turnaround prospects stack up against past surprises. 📊 Read the full Yidu Tech Consensus Narrative.

Revenue Growth Projections Outpace Market

• Revenue growth is projected at 17.2% per year, markedly outpacing the Hong Kong market average of 8.5% based on recent forecasts provided alongside semi-annual financials.
• Consensus narrative notes that this above-market revenue trajectory provides a backdrop for optimism, but cautions that the company’s ability to convert strong sales growth into sustainable profits remains the central debate for investors.
• Recent half-yearly revenue of 743.6 million CNY, up from 450.6 million CNY in H2 fiscal 2024, highlights sales momentum but puts pressure on management to deliver operating leverage.
• Bulls may find the pace of forecast revenue growth compelling while realists will be looking for evidence that expenses are coming under stronger control.

Valuation Multiples Diverge From Peers

• Yidu Tech is currently valued at a Price-To-Sales Ratio of 6.7x, a meaningful discount compared to peer group average of 17.3x, but above the broader Asian Healthcare Services industry at 4.8x.
• Analysts’ consensus view is that this mixed valuation backdrop, attractive versus direct competitors yet less so than the wider industry, could sway sentiment depending on whether upcoming financials show Yidu Tech is closing its profitability gap.
• The lower relative valuation may give growth-focused investors a reason to stick around while others may hesitate until sector trading multiples come closer into line.
• With no major risks identified in the last year, the focus remains tightly on ongoing operational execution and how valuation will track against the profit story in the coming periods.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Yidu Tech's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Despite impressive revenue gains, Yidu Tech’s continued unprofitability and dependence on future earnings growth create persistent uncertainty for investors seeking stability.

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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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