Wondershare(SZ:300624) Ping An Securities·2024-10-11 03:10Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [2][7]. Core Insights - The company focuses on digital creativity and has expanded its multimedia AI applications, with a significant portion of its revenue coming from overseas markets, accounting for 91% in both 2023 and the first half of 2024 [4][18]. - In 2023, the company achieved a revenue of 1.481 billion yuan, a year-on-year increase of 25.5%, and a net profit of 86 million yuan, up 113.2% year-on-year. However, in the first half of 2024, revenue decreased by 1.8% to 705 million yuan, with a net profit drop of 44% to 24 million yuan due to intense external competition [4][20][25]. - The company is actively transitioning to a subscription model, with subscription revenue accounting for 72% of total sales in the first half of 2023, and a renewal rate of 65% [5][7]. Company Overview - The company was established in 2003 and has developed four main product lines: video creativity, drawing creativity, document creativity, and practical tools. It initially focused on overseas markets and returned to China in 2017 [4][18]. - The founder and chairman, Wu Taibing, is the actual controller of the company, holding 15.24% of the shares directly [3][19]. Financial Performance - The company’s revenue has shown a compound annual growth rate (CAGR) of 27.6% from 2014 to 2020, with a significant increase in 2023 due to the AI wave [20][25]. - The forecast for revenue from 2024 to 2026 is projected to be 1.664 billion yuan, 1.942 billion yuan, and 2.271 billion yuan, respectively, with corresponding growth rates of 12.4%, 16.7%, and 16.9% [7][18]. Product Development and AI Integration - The company has been enhancing its AI capabilities, launching the "Tianmu" multimedia model, which includes various AI functionalities such as video generation and digital human broadcasting [6][12]. - The company’s core products have been integrated with AI applications, leading to the launch of several innovative features in its software offerings [6][7].