Yidu Technology (02158.HK)： Focusing on medical big data technology and artificial intelligence solutions, the investment value can be expected to grow.

Introduction:

In this restless stock market in early 2021, retail investors are facing unprecedented difficulties. Measured by valuation indicators, investment targets with good fundamentals and good development prospects are not cheap. On the other hand, the fundamentals and development prospects of the targets with reasonable or low valuation are not optimistic. In the face of the situation intertwined with many worries, if we want to be free from short-term temptation and complicated noise, only by sticking to long-term doctrine can we have an excellent perspective to look at the world again. Long-term doctrine can make investors calm down and find investment targets with long track, high ceiling and thick moat.

Caihua Society will take Yidu Technology (02158.HK) as an example to see the development potential and competitive pattern of the medical big data solution industry, so that investors can find or realize their own investment opportunities.

The integration of technology and medical care, big data technology and artificial intelligence technology can create a blue ocean of 100 billion.

In the past ten years, China has invested heavily in the informatization of medical system, and generated and accumulated a large amount of data. It is urgent to realize the value of data through advanced technologies such as artificial intelligence and big data technology, and adopt integrated technical infrastructure to effectively connect, standardize and analyze data, and realize the application of medical big data. At the same time, factors from different aspects are also promoting the development of the medical big data solution market in China.

In the hospital.At present, hospitals are gradually introducing innovative business models, focusing on academic research, clinical treatment, translational medicine and patient management, which has boosted the demand for medical data integration and application programs. In addition, many large 3A hospitals have introduced advanced medical systems to improve hospital management efficiency, alleviate the shortage and uneven distribution of medical resources in China, and further promote the demand for medical big data and artificial intelligence technology.

In the field of life sciencesWith China vigorously promoting medical reform, reducing medical costs and redistributing medical resources, the supervision of the supply chain of the medical industry has been strengthened. Under this situation, assisting pharmaceutical companies to do real-world research can help improve the quality of drugs, shorten the research and development cycle of new drugs, and thus reduce the research and development cost of new drugs. With the help of big data technology and innovative technologies such as AI, life science companies can create more digital business models covering the whole product life cycle and provide comprehensive personal health management solutions to achieve better results.

In terms of medical needsWith the trend of population aging and the strengthening of health management awareness, the demand for online comprehensive health management will continue to increase. According to Zeping’s macro data, with the complete disappearance of the effect of the comprehensive two-child policy, the improvement of education level and the promotion of urbanization, the future total fertility rate will drop from 1.5 in 2019 to around 1.0-1.2. Based on the total fertility rate of 1.0, by 2050 and 2100, the total population will be 1.21 billion and 520 million respectively, and the proportion of the elderly will be 31.2% and 53.4% respectively.

With the aging of population, the imbalance of medical supply chain has become more and more prominent, and the medical industry is facing greater supply-side constraints, and digital technology is widely regarded as the key to break through the imbalance between medical supply and demand.

In order to improve the supply capacity of medical services in an all-round way, the Chinese government is actively promoting the use of big data and AI technology and the "internet plus" model, and has actively managed and continuously invested in medical data infrastructure. In the past few years, China government has implemented several policies on the application of big data and AI technology for data interconnection and data utilization, so as to improve the level of clinical research and medical services. With the support of the national policy and the increasing demand, Ernst & Young predicted that China’s medical big data solution would break out soon. After more than ten years of continuous investment in hospital and public health informatization in China, China is currently at the explosion point of deeply improving the medical system by applying massive medical big data. The favorable policies have brought an excellent environment for diversified medical big data solutions, which can solve the key problems of all important industry participants such as hospitals, regulatory agencies, life science companies and individuals.

Ernst & Young expects that,The total investment in medical informatization in China medical industry will increase from RMB 145.6 billion in 2019 to RMB 356.7 billion in 2024, with a compound annual growth rate of 19.6%.. Among them,It is estimated that the total investment in medical informatization in China medical industry will exceed 200 billion yuan for the first time in 2021, reaching 209.1 billion yuan.. Among them, as a part of the overall informatization investment in China’s medical industry, the scale of China’s medical big data solution market is RMB 10.5 billion in 2019, and it is expected to grow to RMB 57.7 billion in 2024, with a compound annual growth rate of 40.5%. The overall penetration rate of medical big data solutions is expected to increase from 7.2% in 2019 to 16.2% in 2024.

Medical Science and Technology: Deeply cultivate the medical big data technology solution industry, and the long-term development is favored by institutions.

Yidu Technology is a provider of medical and health solutions based on big data technology and artificial intelligence (AI) technology. The company mainly provides services and cooperates with major participants in the medical industry (including hospitals, pharmaceutical, biotechnology and medical equipment companies, research institutions, insurance companies, doctors and patients, as well as regulatory agencies and policy makers).

In the golden track of medical big data solution industry, what is the supporting force and driving force for the rapid development of medical technology?

At present, there are about 180 participants in China’s medical big data solution market, including traditional medical IT service companies, general technology companies, traditional CRO companies, medical consulting companies and emerging medical big data solution professional institutions. Judging from the number of market participants, Yidu Technology is not without competitors in the industry.

Since its establishment in 2014, what first-Mover advantages has Yidu Technology accumulated and become the first company in the industry to land on the Hong Kong Stock Exchange?

Yidu Technology has established YiduCore, an independent research and development data intelligent infrastructure, to process and analyze medical records from patients after being authorized. Using YiduCore, it has developed a data analysis-driven medical solution that can meet the key needs of customers in the medical industry.

Through YiduCore, Yidu Technology has covered all major provinces in China, and has grown into a leader in medical big data technology and artificial intelligence solution providers based on the moat established in the field of "medical +AI".

In addition to strong medical data processing and analysis capabilities, Yidu Technology also has a strong and top talent team to provide a strong guarantee for the company’s long-term sustainable development. According to the prospectus, as of December 22, 2020, about 40% of employees undertake artificial intelligence and technical functions, about 44% of employees undertake medical functions and have professional knowledge in clinical research, and about 30% of employees have master’s degree or above.

Looking ahead, the industry barriers jointly built by medical big data technology solution service providers represented by Yidu Technology are high, and it is difficult for newcomers to gain a foothold.. At this stage, China’s medical big data solution market has high barriers to entry, and entrants need a good track record, that is, newcomers want to gain a foothold in the industry and need to have a good reputation and experience in the medical big data solution market. Secondly, you need to have professional skills in data processing, artificial intelligence and other advanced technologies. Finally, talent. Only experts with rich medical knowledge and professional skills, like medical technology, can better provide solutions that can effectively meet the needs of medical institutions.

At this time, on the eve of the imminent outbreak of the medical big data technology solution market in China, Yidu Technology has successfully listed in Hong Kong, and with the first-Mover advantage of capital, resources and technology, it is bound to become the first batch of enterprises with a share of 100 billion-level blue ocean. Because of this, long-term institutional investors such as Tencent, CIC and GIC were introduced as strategic shareholders on the eve of listing, and the Canadian Pension Plan Investment Committee, one of the 10 largest pension funds in the world, was directly introduced as the cornerstone investor in the IPO stage. In addition, among the cornerstone investors, there are many well-known long-term investment institutions such as OrbiMed Funds, YaqutSdnBhd, Velmar Company Limited, Matthews Funds, 3W Fund Management and China Oriental Asset Management.

It is true that such a huge shareholder lineup and cornerstone investor team is enough to reflect that the golden track where Yidu Technology is located has been recognized by long-term investment institutions, highlighting the charm of the company’s long-term investment value. From the perspective of long-term development, Yidu Technology can rely on this background to find new opportunities and opportunities for the company’s future business development and integration.

End words:

It is precisely because China’s medical big data technology solution track is wide enough and the moat of Yidu Technology is thick enough. In the 11 trading days after listing, Yidu Technology was favored by six domestic brokerage institutions, becoming one of the most favored companies in the IPO market of Hong Kong stocks in early 2021. Among them, Industrial Securities (601377, Guba) released a research report that YiduCore, the intelligent infrastructure of medical science and technology data, is based on knowledge maps, logical knowledge bases, deep learning and other machine learning algorithms, and as the company processes more data and accumulates more insights and knowledge, it constantly strengthens itself and becomes smarter over time. At this stage, the company’s products cover a wide range of applications, and a variety of applications for different customers on the same platform give the company the opportunity to stand out in different fields, which has market potential. It is recommended to pay attention.

It is true that Yidu Technology focuses on the research and application of medical big data technology, supports the field of medical data governance with artificial intelligence technology, and relies on YiduCore, a self-developed data intelligence infrastructure, as a "medical brain", to fully tap the core technical capabilities of medical big data, provide professional solutions and establish a long-term moat after obtaining authorization to complete high-quality data governance for large-scale multi-source heterogeneous medical data.

Looking forward to the future, Yidu Technology, which landed on the Hong Kong Stock Exchange one step ahead, has the first-Mover advantage in obtaining and understanding the product demand of customers, and is bound to make great achievements in the medical big data solution market that is about to erupt in an all-round way, bringing considerable return on investment to shareholders and investors who have long supported its development.