Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to benefit from a strong pipeline of IP content and the integration of AI technology in content creation, which may provide significant flexibility to its performance in 2024 [1][27] - The company has faced challenges in 2023, including a decline in revenue and a decrease in active user growth, but it has made progress in enhancing product operations and combating piracy [5][19] Financial Performance - In 2023, the company achieved revenue of 70.12 billion yuan, a year-on-year decline of 8% [4][11] - Operating profit increased by 13% to 7.09 billion yuan, while net profit rose by 32% to 8.05 billion yuan [4][11] - Non-IFRS net profit decreased by 16% to 11.30 billion yuan [4][11] User Metrics - The average monthly active users (MAU) for the platform in 2023 was 206 million, a decrease of 15.7% year-on-year [5][9] - The number of paying users increased by 10.1% to 8.7 million, indicating a solid core paying user base [5][9] Revenue Breakdown - Online business revenue was 39.5 billion yuan, down 9.5% year-on-year, while copyright operations and other business revenue was 30.6 billion yuan, down 6.1% [11][24] - The online business accounted for 56.3% of total revenue, while copyright operations represented 43.7% [11][24] Future Outlook - For FY2024-2026, the company expects revenues of 75 billion yuan, 77 billion yuan, and 80 billion yuan, respectively, with adjusted net profits of 13.7 billion yuan, 15.6 billion yuan, and 17.4 billion yuan [27] - The target market capitalization for 2024 is estimated at 334 billion yuan, with a target price of 33 yuan or 36 HKD [27]
2023年报点评：AI持续赋能，2024年迎来重点IP内容释放周期