IFLYTEK(SZ:002230) Guoxin Securities·2024-07-08 08:02Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1] Core Viewpoints - The company has made significant advancements with the launch of the Starfire Model V4.0, which surpasses GPT-4 Turbo in various capabilities and ranks first in eight international mainstream testing sets [2][3] - The company's performance is expected to grow rapidly, with projected net profits of 905 million, 1.935 billion, and 2.955 billion yuan for 2024, 2025, and 2026 respectively, corresponding to current PE ratios of 110, 51, and 34 times [2][26] Summary by Sections Company Overview - Founded in 1999, the company is a leading player in intelligent voice and artificial intelligence in the Asia-Pacific region, focusing on core technology research in intelligent voice, natural language understanding, and computer vision [7][9] - The company has a mixed ownership structure, with significant stakes held by state-owned enterprises [8] Recent Developments - The company launched the Starfire Model V4.0 on June 27, 2024, which includes upgrades across seven core capabilities and has been recognized with a first-class award from the National Science and Technology Progress Award for its project on multilingual intelligent voice technology [2][3] - The company has partnered with Huawei to create a domestic computing power platform, enhancing its capabilities in developing autonomous large models [6] Financial Performance - In 2023, the company achieved a revenue of 19.65 billion yuan, a 4% increase year-on-year, and a net profit of 660 million yuan, representing a 17% growth [15][20] - The company expects steady revenue growth across various business segments, including education, healthcare, and smart cities, with specific growth rates projected for 2024-2026 [20][22] Business Strategy - The company is implementing a "Platform + Track" strategy, focusing on the integration of AI capabilities across various sectors, including education, healthcare, and smart cities [13][15] - The company has opened its platform to developers, significantly increasing the number of developer teams and applications [13] Future Outlook - The company anticipates continued growth in its core business areas, with specific revenue growth rates projected for education (20% in 2024), healthcare (50% in 2024), and smart cities (0.24% in 2024) [20][22] - The overall market for AI applications is expected to grow rapidly, positioning the company for significant performance improvements in the coming years [2][26]