IFLYTEK(SZ:002230) SINOLINK SECURITIES·2025-04-22 01:23Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5][13]. Core Insights - The company reported a revenue of 23.34 billion RMB in 2024, a year-on-year increase of 18.97%, while the net profit attributable to shareholders was 560 million RMB, a decrease of 14.78% due to increased R&D expenses and provisions for bad debts [2]. - The company achieved a record high operating cash flow of 2.495 billion RMB in 2024, indicating strong operational efficiency [2]. - In Q1 2025, the company generated revenue of 4.658 billion RMB, reflecting a year-on-year growth of 27.74%, although it reported a net loss of 193 million RMB, which is a 35.68% reduction in losses compared to the previous year [2]. Revenue and Profitability Analysis - The company’s revenue from smart education, healthcare, and automotive sectors grew by 29.94%, 28.18%, and 42.16% respectively in 2024 [3]. - The AI solutions segment, leveraging the Spark large model, secured 91 projects with a total bid amount of 848 million RMB, generating revenue of 643 million RMB, which is a 122.56% increase year-on-year [3]. - The company’s gross margin showed a slight decrease of 0.03% in 2024 but improved by 2.12% in Q1 2025 [4]. Cost and Expense Management - The company’s sales expense ratio decreased by 0.75% in 2024 and by 1.00% in Q1 2025, while the management expense ratio also saw a decline of 0.74% and 2.83% respectively [4]. - R&D expenses for 2024 were 4.58 billion RMB, an increase of 19.37% compared to the previous year, indicating a commitment to innovation [4]. Future Projections - Revenue projections for 2025, 2026, and 2027 are estimated at 28.01 billion RMB, 34.25 billion RMB, and 41.93 billion RMB respectively, with expected growth rates of 20.00%, 22.28%, and 22.42% [5][10]. - The net profit attributable to shareholders is forecasted to be 776 million RMB, 975 million RMB, and 1.193 billion RMB for the years 2025, 2026, and 2027, reflecting growth rates of 38.48%, 25.71%, and 22.34% respectively [5][10].