Wondershare(SZ:300624) Ping An Securities·2024-10-31 00:35Investment Rating - The report maintains a "Recommended" rating for the company [1][7]. Core Views - The company's revenue growth is under short-term pressure due to intensified market competition, leading to a year-on-year revenue decrease of 3.91% for the first three quarters of 2024, with a net profit loss of 5.5 million yuan compared to a profit of 64.85 million yuan in the same period last year [2][7]. - Increased sales and R&D investments have raised the expense ratio, with a gross margin of 93.72%, down 1.47 percentage points year-on-year, and an expense ratio of 92.25%, up 5.93 percentage points year-on-year [2][7]. - The company is actively promoting product upgrades, with several flagship products receiving updates, which is expected to drive revenue growth in the future [3][7]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 1.053 billion yuan, a decrease of 3.91% year-on-year, and a net profit loss of 5.5 million yuan [1][2]. - The gross margin for the first three quarters was 93.72%, and the net profit margin fell to -0.52% from 5.92% in the same period last year [2][7]. Product Development - The company has launched new versions of several key products, including Filmora V14 and EdrawMind V12, which incorporate advanced features such as AI functionalities [3][6]. - New products like Edraw.AI and SelfyzAI have been introduced, contributing to user growth and revenue [6][7]. Future Projections - The revenue projections for 2024-2026 have been adjusted to 1.587 billion yuan, 1.784 billion yuan, and 2.082 billion yuan, respectively, with corresponding net profits of 39 million yuan, 78 million yuan, and 108 million yuan [7][11]. - The company is expected to continue benefiting from its focus on video creativity and digital office solutions, with a strong emphasis on AI applications [7][11].