CiDi SEHK 3881 Revenue Growth Story Tested By Deepening EPS Loss

CiDi (SEHK:3881) has reported its FY 2025 figures, with first half revenue of ¥408.0 million and a basic EPS loss of ¥2.79. Trailing 12 month figures show revenue of ¥884.8 million and a basic EPS loss of ¥5.91, keeping profitability firmly in the red. The company’s revenue has moved from ¥132.6 million in 2H 2023 to ¥410.0 million in 2H 2024 and then to ¥408.0 million in 1H 2025. However, net income has remained negative across these periods, indicating that margins are still under clear pressure.

See our full analysis for CiDi.

With the headline numbers on the table, the next step is to compare this mix of rapid revenue expansion and persistent losses with the most common storylines investors are using to think about CiDi, in order to see which narratives the latest results support and which they put under strain.

Curious how numbers become stories that shape markets? Explore Community Narratives

Rapid revenue, but losses deepen

• Across the last four reported half year periods, total revenue increased from ¥132.6 million in 2H 2023 to ¥410.0 million in 2H 2024 and ¥408.0 million in 1H 2025, while trailing 12 month net income stayed in loss territory at ¥1,019.7 million and basic EPS on that basis was a loss of ¥5.91.
• What stands out for a bullish view is the mix of strong reported revenue growth of 115.8% over the last year alongside continuing losses, which creates a tension between growth potential and current profitability.
  • Supporters of a bullish case may point to the 115.8% revenue growth and forecasts in the data that call for revenue growth of 62.8% per year and earnings growth of 148.46% per year, with profitability expected within three years.
  • Set against that, the trailing 12 month loss of ¥1,019.7 million and basic EPS loss of ¥5.91 show that, so far, higher sales have not yet translated into positive net income or improved trailing margins.

High growth expectations versus rich pricing

• The shares trade at a P/S of 9.1x compared with 3.3x for peers and 1.0x for the wider Hong Kong Machinery industry, and the current share price of HK$21.04 sits well above a DCF fair value of HK$0.80.
• Critics taking a more bearish stance focus on this valuation gap and question how much of the forecast growth is already reflected in the current price.
  • Bears highlight that the company is still unprofitable over the trailing 12 months, yet carries a P/S multiple that is almost 3x the peer average and more than 9x the broader industry figure in the data.
  • They also point to the DCF fair value of HK$0.80 versus the HK$21.04 share price as evidence that the market is assigning a very large premium relative to estimated future cash flows.

On numbers like these, some investors will want a closer look at how valuation arguments for and against the company stack up against its growth profile Look into how the SWS DCF model arrives at its fair value..

Forecasts lean positive, execution still key

• Analyst forecasts in the dataset call for revenue growth of 62.8% per year and earnings growth of 148.46% per year, with the company expected to move from its current trailing 12 month loss into profitability within three years.
• Supporters of a more positive narrative see these projections as a strong counterweight to current losses, but the historical numbers underline that execution on those forecasts is crucial.
  • On one hand, the latest 1H 2025 figures show ¥408.0 million of revenue compared with ¥151.6 million in 2H 2024, which sits comfortably within a high growth story.
  • On the other hand, net income excluding extra items was a loss of ¥454.5 million in 1H 2025 and ¥458.1 million in 2H 2024, signalling that, despite the growth, the business is still absorbing sizeable losses each half year.

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 CiDi'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.

The mix of optimism and concern in these numbers is clear, so it makes sense to check the underlying data yourself and decide how it fits your risk tolerance. To weigh up both sides of the story in one place, take a look at the 2 key rewards and 1 important warning sign

See What Else Is Out There

CiDi combines rapid revenue growth with continuing losses and a high valuation multiple, so investors face significant questions about when, or if, earnings will catch up.

If this mix of deep losses and a rich P/S multiple feels uncomfortable, consider balancing your watchlist with companies screened as potentially better priced using the 253 high quality undervalued stocks

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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