IFLYTEK(SZ:002230) Xin Lang Cai Jing·2025-09-05 08:45Core Viewpoint - The company is expected to improve its performance in the first half of 2025, with significant narrowing of losses driven by AI-enabled digital transformation in government and enterprise sectors, a rebound in smart education demand, and growth in consumer AI business [1] Financial Performance - The company maintains a "Buy" rating and raises the target price to 66.75 yuan (+6.20) due to steady revenue growth and a substantial reduction in losses, with the education business continuing to drive overall performance with a growth rate of over 20% [2] - In the first half of 2025, the company achieved operating revenue of 10.911 billion yuan, a year-on-year increase of 17.01%, and a net profit loss of 239 million yuan, narrowing losses by 40.37% year-on-year [2] - The company’s Q2 revenue was 6.253 billion yuan, a year-on-year increase of 10.12%, with a net loss of 46 million yuan, narrowing losses by 54.41% year-on-year [2] Business Segments - The smart education segment generated revenue of 3.531 billion yuan, a year-on-year increase of 23.47%, with a gross margin of 51.92%, supported by digital education and smart terminal growth [3] - The open platform revenue reached 2.724 billion yuan, a year-on-year increase of 16.18%, with a gross margin of 16.58% [3] - The enterprise AI solutions segment saw a remarkable revenue increase of 349.92% to 439 million yuan, indicating strong demand resilience and structural upgrades across various industries [3] Product Development - The "Spark" model continues to iterate, demonstrating competitive capabilities against leading models, with significant advancements in hallucination governance accuracy and coverage of over 130 languages [4] - The "iFlytek Spark" app has achieved over 300 million downloads on Android, ranking among the top 5 general-purpose large model applications in China, indicating strong user penetration and retention [4] - The office product line has seen a doubling in sales of the Air2 series, contributing to long-term growth certainty [4] International Expansion - The company reported overseas revenue of 179 million yuan in the first half of 2025, a year-on-year increase of 212.08%, driven by multi-point international expansion [3]