万兴科技：2024年中报，AI投入增加致毛利率下降，影响利润

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 705 million yuan for the first half of 2024, a year-on-year decrease of 1.8% [1] - The net profit attributable to the parent company was 24.49 million yuan, down 44.0% year-on-year, while the net profit excluding non-recurring items was 15.65 million yuan, a decrease of 54.6% [1] - The decline in profit is attributed to increased AI investments leading to a decrease in gross margin and an increase in expense ratios [1] - The company continues to invest in AI, which is expected to enhance long-term growth potential despite short-term profit fluctuations [2] Summary by Sections Financial Performance - In Q2, the company achieved a revenue of 347 million yuan, a year-on-year decrease of 4.4%, with a net profit attributable to the parent company of -1.16 million yuan, a decline of 105.1% year-on-year [1] - The gross margin for the first half of the year was 93.8%, down 1.6 percentage points year-on-year, primarily due to increased server costs from AI investments [1] - The company’s cash flow from operating activities decreased by 86.8% year-on-year, mainly due to increased cash payments to employees and higher daily cash expenses [1] Product and Regional Performance - Revenue from video creative products was 460 million yuan, a year-on-year increase of 1.0%, making it the company's main business pillar [1] - Revenue from practical tool products was 120 million yuan, a year-on-year decrease of 5.0% [1] - International revenue for the first half was 640 million yuan, a year-on-year decrease of 1.1%, accounting for 90.9% of total revenue [1] Future Projections - The company is expected to achieve revenues of 1.62 billion yuan, 1.92 billion yuan, and 2.33 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 10%, 18%, and 21% [2] - The projected net profit attributable to the parent company for the same years is 90 million yuan, 130 million yuan, and 160 million yuan, with year-on-year growth rates of 9%, 37%, and 25% [2]