IFLYTEK(SZ:002230) Guotai Junan Securities·2024-10-22 23:36Investment Rating - The report maintains a "Buy" rating with a target price of 57.65 CNY, corresponding to a 148 times PE for 2024 [3][4]. Core Insights - The company achieved a profit turnaround in Q3 2024, with a focus on both enterprise and consumer sectors, indicating that the commercialization potential of the Spark large model is gradually being realized [2]. - The company reported Q3 revenue of 5.525 billion CNY, a year-on-year increase of 15.77%, and a gross profit of 2.260 billion CNY, up 16.68% year-on-year. The operating cash flow net amount reached 715 million CNY, reflecting a 100.09% year-on-year growth [3]. - The company is exploring multiple commercialization paths for the Spark large model, enhancing product competitiveness and market penetration in various sectors, including education and finance [3]. - The developer ecosystem around the "Xunfei Spark" model is expanding rapidly, with 1.777 million new developers and over 415,000 enterprise clients engaging with the applications [3]. Financial Summary - The company’s revenue is projected to grow from 19.65 billion CNY in 2023 to 30.435 billion CNY by 2026, reflecting a compound annual growth rate (CAGR) of approximately 15% [4]. - Net profit attributable to shareholders is expected to increase from 657 million CNY in 2023 to 1.318 billion CNY in 2026, with a significant growth rate of 35.7% in 2024 [4]. - Earnings per share (EPS) are forecasted to rise from 0.28 CNY in 2023 to 0.57 CNY in 2026 [4].