Wondershare(SZ:300624) Haitong Securities International·2025-05-15 10:02Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 75.99 per share, reflecting a potential upside from the current price of RMB 63.72 [1][8]. Core Insights - The company has shown improvement in revenue growth in Q1 2025, with a year-on-year increase of 6.06%, reaching RMB 380 million. However, it is still facing pressure on profits due to rising operating costs and expenses [1][8]. - The commercialization potential of AI is highlighted as a significant driver for future growth, with AI-related revenue expected to exceed RMB 67 million in 2024, marking a growth of over 100% year-on-year [1][8]. - The company’s core video creative business has seen stable user growth, with a more than 20% increase in paying users, and the mobile product Filmora has undergone a comprehensive upgrade, resulting in a 90% increase in monthly active users [1][8]. Financial Summary - For 2024, the company is projected to generate revenue of RMB 1.44 billion, a decrease of 2.78% year-on-year, with a net loss attributable to shareholders of RMB 163 million [3][8]. - The revenue forecast for 2025 is set at RMB 1.63 billion, with further growth expected in subsequent years, reaching RMB 2.18 billion by 2027 [3][8]. - The report indicates that the company’s operating costs and expenses are increasing, which has led to a projected net profit loss in 2024 and a continued decline in profitability in Q1 2025 [1][8].