IFLYTEK(SZ:002230) Xinda Securities·2025-10-22 08:34Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 16.989 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 14.41%. The net profit attributable to shareholders was -0.067 billion yuan, showing a significant reduction in losses with a year-on-year increase of 80.60%. In Q3 2025, the company achieved a revenue of 6.078 billion yuan, a year-on-year growth of 10.02%, and a net profit of 0.172 billion yuan, reflecting a remarkable year-on-year growth of 202.40% [1][2] - The core business continues to show robust growth, with net profit and cash flow turning positive in Q3 2025. The company’s operating cash flow net amount reached 0.895 billion yuan, a year-on-year increase of 25.19% [2] - The company is committed to investing in AI large model research and development, maintaining its leading position in the artificial intelligence industry. The upgraded version of "Xunfei Xinghuo X1" launched on July 25, 2025, has achieved significant advancements in various areas while maintaining a competitive edge [2] - The company ranked first in the industry for the number and amount of large model project bids from January to September 2025, with a bid amount of 0.545 billion yuan in Q3, which is 1.88 times that of the combined total of the second to fifth places [2] - The company is projected to have EPS of 0.40, 0.52, and 0.65 yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 130.84, 100.65, and 80.32, maintaining a "Buy" rating [2][3] Financial Summary - For 2025, the total revenue is expected to be 28.125 billion yuan, with a year-on-year growth rate of 20.5%. The net profit attributable to shareholders is projected to be 0.929 billion yuan, reflecting a year-on-year growth of 65.9% [3] - The gross profit margin is expected to remain stable at around 42.4% to 42.5% from 2025 to 2027 [3] - The return on equity (ROE) is projected to increase from 5.1% in 2025 to 7.3% in 2027 [3]