IFLYTEK(002230) 华创证券·2024-07-10 04:01Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [2][12]. Core Insights - The company is experiencing dual growth in revenue and gross profit, with projected revenue exceeding 9 billion yuan, representing a year-on-year increase of 15%-20%. Gross profit is expected to grow by 600 million yuan, also reflecting a 15%-20% year-on-year increase, with gross profit growth outpacing revenue growth [1][2]. - Despite the positive revenue and gross profit growth, the company anticipates a significant decline in net profit attributable to shareholders, projected between -460 million to -380 million yuan, a year-on-year decrease of 617%-725%. The non-recurring net profit is expected to be between -500 million to -420 million yuan, down 38%-64% year-on-year, primarily due to increased investments exceeding 650 million yuan in model research and development and technology autonomy [1][2]. - The company is solidifying its position in the AI sector by developing core technologies that are self-controllable, with its "Xunfei Starfire V4.0" model fully matching the capabilities of GPT-4 Turbo. The company has established a unique advantage in the field of general artificial intelligence, particularly in the context of external pressures from the U.S. [2]. - The company is seizing historical opportunities in general artificial intelligence, actively promoting the application of large models. It has seen a rapid increase in developer engagement, with 1.279 million new developers in the first half of 2024. The company has launched several software and hardware products across various sectors, including education, healthcare, and automotive, showcasing its leading capabilities in large model applications [2]. Financial Summary - The company forecasts total revenue for 2024-2026 to be 23.358 billion, 27.964 billion, and 31.471 billion yuan respectively, with year-on-year growth rates of 18.9%, 19.7%, and 12.5% [6]. - The projected net profit for the same period is expected to be 505 million, 749 million, and 1.243 billion yuan, with year-on-year growth rates of -23.2%, 48.4%, and 66.0% respectively [6]. - The report highlights a significant increase in the number of developers and partnerships with major industry players, indicating strong market penetration and growth potential [2].