IFLYTEK(SZ:002230) Ping An Securities·2024-10-21 06:30Investment Rating - The investment rating for the company is "Recommended" (maintained) [2][7]. Core Views - The company reported a revenue of 14.85 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 17.73%. However, it recorded a net profit attributable to shareholders of -344 million yuan, indicating a shift from profit to loss [2][3]. - In the third quarter of 2024, the company achieved a revenue of 5.525 billion yuan, a year-on-year increase of 15.77%, and a net profit of 56.96 million yuan, showing a significant year-on-year growth of 120.87% [3][7]. - The company has increased its research and development (R&D) investment, with R&D expenses reaching 3.037 billion yuan in the first three quarters of 2024, a year-on-year increase of 21.57% [3][7]. - The company's "Xunfei Spark" large model has shown positive results in its expansion, becoming a partner for several key industry clients [3][7]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 14.85 billion yuan, up 17.73% year-on-year, but reported a net profit of -344 million yuan, down from profit in the previous year [2][3]. - The third quarter alone saw revenues of 5.525 billion yuan, a 15.77% increase year-on-year, and a net profit of 56.96 million yuan, marking a 120.87% increase year-on-year [3][7]. R&D and Product Development - The company maintained a stable gross margin of 40.45% in the first three quarters of 2024, with R&D expenses amounting to 3.037 billion yuan, reflecting a 21.57% increase year-on-year [3][7]. - The "Xunfei Spark" large model has been iterated to version 4.0 and has established itself as a leading player in the market, with significant project wins in various sectors [3][7]. Market Position and Future Outlook - The company is positioned as a leading player in the artificial intelligence sector in China, with its large model projects leading in both quantity and value in the industry [7]. - The forecast for net profit for 2024-2026 is 505 million yuan, 805 million yuan, and 996 million yuan respectively, with corresponding EPS of 0.22 yuan, 0.35 yuan, and 0.43 yuan [7].