Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 1.86 HKD [2]. Core Insights - The company reported a significant improvement in AI revenue in Q4 2023, with adjusted EBITDA expected to turn positive in 2024 [2]. - The total revenue for 2023 was 7.05 billion RMB, a decrease of 13.8% year-on-year, primarily due to a reduction in CDN business scale and stricter project selection [2]. - The gross margin for 2023 was 12.1%, a notable increase of 6.8 percentage points year-on-year, with Q4 2023 gross margin reaching 14.7% [2]. - The company has deepened its strategic cooperation with Xiaomi, with Q4 2023 AI revenue showing a significant quarter-on-quarter increase of 82% [2]. - The company aims to focus on vertical industries such as public services, healthcare, and financial services to create a virtuous cycle [2]. Summary by Sections Market Data - Total share capital: 3.805 billion shares - Total market capitalization: 7.078 billion HKD - 1-year low/high: 1.26 - 5.65 HKD - 3-month turnover rate: 49.2% [1]. Financial Performance - Q4 2023 public cloud revenue was 1.05 billion RMB, down 21.7% year-on-year [2]. - The company’s CDN business accounted for approximately 23% of total revenue in Q4 2023, with the largest CDN customer contributing 12% [2]. - The company’s net loss for 2023 was 2.18 billion RMB, a reduction from 2.69 billion RMB in 2022 [2]. Profitability Forecast - The report forecasts a continued improvement in profitability, with adjusted net profit estimates for 2024 and 2025 revised upwards by 25% and 30% respectively [2]. - The company is expected to achieve a positive adjusted EBITDA in 2024, driven by revenue structure optimization and cost control [2]. Revenue Projections - Revenue projections for 2024 are estimated at 7.305 billion RMB, with a growth rate of 3.7% [4]. - The company anticipates a gradual increase in revenue from its industry cloud services, focusing on high-quality projects [2][4].
4Q23及2023年度业绩点评：4Q23AI收入环比提升显著，2024年经调整EBITDA有望实现转正