IFLYTEK(SZ:002230) SINOLINK SECURITIES·2025-08-22 01:16Investment Rating - The report maintains a "Buy" rating for the company, expecting significant price appreciation in the next 6-12 months [4][12]. Core Insights - The company reported a revenue of 10.91 billion yuan for the first half of 2025, representing a year-on-year growth of 17.0%, with gross profit also increasing by 17.1%. However, the net profit attributable to the parent company was a loss of 360 million yuan, although this loss narrowed by 24.6% year-on-year [2]. - The company's education products and services revenue reached 3.53 billion yuan in the first half of 2025, growing by 23.5% year-on-year, with the AI learning machine business experiencing significant growth [3]. - The company plans to raise up to 4 billion yuan through a private placement, with 800 million yuan allocated for AI education models and products, particularly in AI smart classrooms and AI learning machines [3]. Summary by Sections Performance Review - In Q2 2025, the company achieved a revenue of 6.25 billion yuan, a 10.1% increase year-on-year, but the net profit attributable to the parent company was a loss of 140 million yuan, which is a significant increase in loss by 220.4% year-on-year [2]. Revenue Analysis - The company’s revenue from education products and services was 3.53 billion yuan in H1 2025, with a notable growth of 23.5%. The AI learning machine segment continues to see exponential growth, expanding into international markets such as Japan and Singapore [3]. - Recovery was noted in the information engineering and digital government sectors, while growth in open platforms, smart hardware, and smart automotive sectors slowed down [3]. Profit Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 27.29 billion yuan, 30.89 billion yuan, and 34.57 billion yuan, with year-on-year growth rates of 16.9%, 13.2%, and 11.9% respectively. The net profit attributable to the parent company is expected to be 830 million yuan, 1.15 billion yuan, and 1.30 billion yuan for the same period, reflecting growth rates of 48.6%, 38.5%, and 12.9% respectively [4].