Kunlun(SZ:300418) Soochow Securities·2025-05-01 07:29Investment Rating - The report maintains a "Buy" rating for Kunlun Wanwei (300418) [1] Core Views - The company is accelerating its commercialization process in the AI ecosystem, with significant revenue growth driven by its Opera platform [9] - Despite high revenue growth, the company faces profit pressure due to increased R&D investments and market fluctuations affecting its investment business [9] - The AI business is expected to continue its rapid commercialization, with various applications across the entire industry chain [9] Financial Summary - Total revenue for 2023 is projected at 4,915 million RMB, with a year-on-year growth of 3.78%. Revenue is expected to reach 5,662 million RMB in 2024, representing a 15.20% increase, and further grow to 7,166 million RMB in 2025, a 26.56% increase [1] - The net profit attributable to the parent company is forecasted to be -1,594.80 million RMB in 2024, a decline of 226.74% year-on-year, with further losses expected in 2025 [1] - The earnings per share (EPS) is projected to be -1.30 RMB in 2024, -0.72 RMB in 2025, and -0.63 RMB in 2026 [1] Revenue and Profitability Insights - The company’s revenue growth is primarily driven by the strong performance of its Opera platform, which saw a revenue increase of 21.12% in 2024 and 40.10% in Q1 2025 [9] - R&D expenses are expected to rise significantly, with 15.43 million RMB in 2024 and 4.30 million RMB in Q1 2025, reflecting a year-on-year increase of 59.46% and 23.43% respectively [9] - The company’s sales expenses are also increasing, with 23.04 million RMB in 2024 and 8.68 million RMB in Q1 2025, indicating a year-on-year growth of 42.23% and 92.11% respectively [9] Future Projections - Revenue forecasts for 2025-2027 are adjusted to 72 billion RMB, 80 billion RMB, and 89 billion RMB respectively, with EPS estimates of -0.72 RMB, -0.63 RMB, and -0.51 RMB [9] - The report highlights the potential for profitability as the AI commercialization accelerates, with expectations for various AI applications to continue to materialize [9]