Kunlun(SZ:300418) Xin Lang Cai Jing·2025-05-02 00:50Core Viewpoint - The company reported a revenue of 5.662 billion yuan for 2024, a year-on-year increase of 15.2%, but incurred a net loss of 1.59 billion yuan, primarily due to financial asset price fluctuations and increased AI-related expenses [1] Group 1: Financial Performance - In Q1 2025, the company achieved a revenue of 1.764 billion yuan, representing a year-on-year growth of 46.07%, driven by high growth in short drama and opera businesses [1] - The net loss for Q1 2025 was 770 million yuan, compared to a loss of 190 million yuan in the same period last year, mainly due to investment business losses and increased marketing expenses for AI software and short drama businesses [1] - The company maintains a "buy" rating, anticipating performance improvement with the recovery of investment business and return on previous marketing investments [1] Group 2: AI Application Development - The AI social platform Linky achieved a peak monthly revenue of over 1 million USD in 2024, becoming one of the fastest-growing Chinese AI applications overseas [2] - The company launched the AI music platform Mureka in August 2024, with an annual recurring revenue (ARR) of approximately 12 million USD [2] - The real-time voice dialogue assistant "Skyo" was introduced at the end of 2024, providing a "human-level" conversation experience through advanced modeling technology [2] - The company has established a comprehensive layout in AI applications, integrating computing infrastructure, large model algorithms, and AI applications [2] Group 3: International Market Expansion - The Opera platform generated 480 million USD in revenue for 2024, reflecting a year-on-year increase of 21.1% [3] - The overseas short drama platform DramaWave surpassed 10 million monthly active users by March 2025, with an ARR of approximately 12 million USD [3] - The overseas social network and short drama platform business achieved a revenue of 1.25 billion yuan, a year-on-year growth of 28.5%, contributing to a total overseas revenue of 5.15 billion yuan, up 21.9% [3] - The company's global expansion is expected to enhance AI development and strengthen its core competitive advantages [3] Group 4: Profit Forecast and Valuation - The company maintains its net profit forecast for 2025-2026 at -310 million yuan and 330 million yuan, respectively, with an expected net profit of 530 million yuan for 2027 [4] - Using the SOTP valuation method, the target market value is estimated at 44.66 billion yuan, corresponding to a target price of 36.28 yuan [4] - The company continues to hold a "buy" rating based on the SOTP valuation [4]