IFLYTEK(002230) 华创证券·2024-09-09 17:06Investment Rating - Strong Buy (Maintained) [1] Core Views - Revenue growth remains steady, but profits are under short-term pressure due to significant R&D investments in the "Spark Large Model" and other core technologies [1] - Core businesses, including education, healthcare, open platform, smart hardware, and automotive, show strong revenue growth, while smart city business declines due to low G-end demand [1] - The company is seizing the historical opportunity of general artificial intelligence, launching the "Spark Ultra-Fast Hyper-Realistic Interaction" model, which represents a shift from catching up to independent innovation in domestic large models [1] - Long-term optimism is maintained for AI's empowerment of industrial applications, with revenue and net profit forecasts for 2024-2026 set at 233.58/279.64/314.71 billion yuan and 5.05/7.49/12.43 billion yuan, respectively [1] Financial Performance - H1 2024 revenue reached 9.325 billion yuan, up 18.91% YoY, with a non-GAAP net profit of -483 million yuan [1] - Q2 2024 revenue was 5.678 billion yuan, up 14.62% YoY, with a net profit of -100 million yuan, compared to a profit of 131 million yuan in the same period last year [1] - Education products and services revenue grew 25.14% YoY to 2.86 billion yuan, while healthcare revenue increased 18.80% YoY to 228 million yuan [1] - Open platform revenue surged 47.92% YoY to 2.345 billion yuan, and smart hardware revenue rose 56.61% YoY to 900 million yuan [1] - Automotive business revenue grew 65.49% YoY to 352 million yuan, while smart city revenue declined 21.2% YoY to 1.186 billion yuan [1] Financial Forecasts - 2024-2026 revenue is projected to be 233.58/279.64/314.71 billion yuan, with net profit forecasts of 505/749/1,243 million yuan [1][2] - EPS for 2024-2026 is estimated at 0.22/0.32/0.54 yuan, with P/E ratios of 154/104/63 [2] - Gross margin is expected to remain stable at around 43-44.5% from 2024 to 2026 [6] - ROE is forecasted to improve from 2.9% in 2024 to 6.6% in 2026 [6] Industry Insights - The global intelligent voice service market is projected to reach approximately 731.6 billion USD by 2030, driven by rapid expansion in AI and voice technology [1] - The company's "Spark Ultra-Fast Hyper-Realistic Interaction" model represents a significant leap in domestic AI innovation, moving beyond traditional text-to-speech models to achieve real-time, end-to-end voice interaction [1]