Wondershare(300624) 海通证券·2024-08-24 10:39Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company's government and enterprise business performed well, with a 46% YoY growth in revenue from this segment in H1 2024 [5] - The company is focusing on both technological development and commercialization, with over 100 AI algorithms developed or integrated in H1 2024 [6] - The company is well-positioned to benefit from the AIGC trend and the natural affinity of Gen Z for AIGC, with the launch of its multimedia large model "Tianmu" and several AIGC creative products [9] - The company's short-term performance is under pressure, but its B2B business is expected to become a new growth driver [10] Financial Performance - In H1 2024, the company achieved total operating revenue of 705 million yuan, a YoY decrease of 1.80%, and net profit attributable to the parent company of 24.49 million yuan, a YoY decrease of 43.99% [5] - In Q2 2024, the company achieved operating revenue of 347 million yuan, a YoY decrease of 4.43%, and a net loss attributable to the parent company of 1.159 million yuan [5] - The company's overseas revenue reached 641 million yuan, accounting for over 90% of total revenue, with core video creative business contributing 461 million yuan, accounting for over 65% of revenue [5] - The company's revenue is expected to grow to 1.682 billion yuan in 2024, 1.937 billion yuan in 2025, and 2.261 billion yuan in 2026 [7] Product Development - The company has been strengthening its product base, with the release of new versions of its flagship products such as Filmora V13.5 and PDFelement V11, which include enhanced AI capabilities [8] - The company has also launched new AI-powered products such as Selfie U and Media.io Studio, targeting the growing demand for AIGC tools [8] Market Opportunities - The company is well-positioned to capitalize on the AIGC trend, with the global AI market expected to grow at a CAGR of 36.6% from 2024 to 2030, and 90% of digital content expected to be AI-generated by 2030 [9] - The company's focus on Gen Z, who are naturally inclined towards content creation and AIGC, presents a significant growth opportunity [9] Valuation - The report values the company at a dynamic PS of 8-9x for 2024, with a reasonable value range of 69.61-78.31 yuan [10]