IFLYTEK(002230) Haitong Securities International·2025-05-15 08:02Investment Rating - The report maintains an "Outperform" rating for the company with a target price of 60.68 RMB per share, reflecting a potential upside from the current price of 47.47 RMB [1][8]. Core Insights - The company has demonstrated steady revenue growth, with a notable performance in recurring net profit attributable to shareholders (NPAtS), which surged nearly 60% in 2024. The education business has rebounded with over 20% growth following a decline in 2023, while smart automotive and open platform businesses have also excelled. The continuous upgrade of foundational AI models is expected to further solidify the company's leadership in the AI sector [1][8]. Financial Summary - In 2024, the company achieved a revenue of 23.34 billion RMB, representing an 18.79% year-over-year increase. The net profit attributable to shareholders was 560 million RMB, down 14.78% year-over-year, while the recurring NPAtS reached 188 million RMB, up 59.36% year-over-year. For Q1 2025, revenue was 4.66 billion RMB, up 27.74% year-over-year, with a net profit attributable to shareholders of -193 million RMB [3][8]. - Revenue forecasts for 2025 and 2026 are set at 28.06 billion RMB and 33.80 billion RMB, respectively, with a new forecast for 2027 at 41.03 billion RMB. The company is expected to maintain a strong revenue growth rate despite its large revenue base [1][8]. Business Performance - The company's various business segments showed significant growth in 2024, with smart education revenue reaching 7.23 billion RMB (up 29.94%), open platform revenue at 5.17 billion RMB (up 31.33%), and smart automotive revenue at 0.99 billion RMB (up 42.16%). The GBC synergy model has effectively driven the growth of the education business, providing tailored solutions in 85 cities/counties [3][8]. - The Spark foundational model has become a crucial growth driver, leading in project awards in 2024. The model was upgraded in April 2024, achieving performance comparable to industry leaders while maintaining a smaller parameter size [1][8].