Investment Rating - The investment rating for the company is upgraded to "Buy" [1] Core Views - The report highlights strong revenue and profit growth driven by AI technology, with a significant increase in paid conversion rates [1][2] - The company achieved a revenue of 2.7 billion HKD in 2023, representing a year-on-year growth of 29.3% [1] - The adjusted net profit reached 368 million HKD, a remarkable increase of 233.2% year-on-year, with an adjusted net profit margin of 13.7% [1][3] Financial Performance Summary - In 2023, the company recorded a revenue of 2,695.7 million HKD, with a gross profit of 1,655.9 million HKD, resulting in a gross margin of 61% [3][4] - The company expects revenues for 2024, 2025, and 2026 to be 3.73 billion HKD, 4.66 billion HKD, and 5.60 billion HKD, respectively, with growth rates of 39%, 25%, and 20% [2][3] - The non-IFRS adjusted net profit for 2024, 2025, and 2026 is projected to be 564.9 million HKD, 739.3 million HKD, and 928.0 million HKD, respectively [2][3] User Growth and Market Expansion - The company reported a monthly active user count of 250 million by the end of 2023, reflecting a year-on-year growth of 2.6% [1] - The paid subscription user base reached over 9.11 million, marking a historical high with a year-on-year increase of 62.3% [1][2] - The company has successfully expanded its image-related products to 195 countries and regions, with flagship applications ranking first in various app store charts [1][2] AI Integration and Business Model - AI technology has been widely applied in the company's core business, significantly enhancing user engagement and operational efficiency [1] - The revenue from the image and design products based on a subscription model reached 1.33 billion HKD in 2023, up 52.8% year-on-year [1][2] - The company is actively building a product ecosystem around its AI model, MiracleVision, which is integrated across all its products [1][4]
AI助力营收利润强劲增长，付费转化率持续提高