B端及C端业务增势较高，模型能力持续提升

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved a revenue of 19.65 billion RMB in 2023, reflecting a year-on-year growth of 4.4%, slightly below previous forecasts but meeting revised equity incentive targets [2] - The gross profit for 2023 was 8.38 billion RMB, with a gross margin of 42.7%, an increase of 1.8 percentage points from the previous year [2] - The company is expected to continue its revenue growth trajectory, with projected revenues of 21.26 billion RMB, 23.26 billion RMB, and 25.77 billion RMB for 2024, 2025, and 2026 respectively, representing growth rates of 8.2%, 9.4%, and 10.8% [4] Summary by Sections Company Overview - Revenue (in million RMB): 18,820 in 2022, 19,650 in 2023, projected 21,262 in 2024, 23,260 in 2025, and 25,772 in 2026 [1] - Revenue growth rates: 2.77% in 2022, 4.41% in 2023, projected 8.20% in 2024, 9.40% in 2025, and 10.80% in 2026 [1] - Net profit attributable to the parent company (in million RMB): 561 in 2022, 657 in 2023, projected 688 in 2024, 758 in 2025, and 841 in 2026 [1] - Net profit growth rates: -63.94% in 2022, 17.12% in 2023, projected 4.64% in 2024, 10.15% in 2025, and 10.97% in 2026 [1] Performance Review - The company reported a net profit of 1.2 billion RMB in 2023, a decline of 71.7% year-on-year, close to the upper limit of the performance forecast [2] - In Q4 2023, the company achieved a revenue of 7.04 billion RMB, a year-on-year increase of 14.2%, while Q1 2024 saw a revenue of 3.65 billion RMB, up 26.3% year-on-year [2] Operational Analysis - B-end and C-end businesses showed strong growth, with B-end intelligent automotive and smart finance growing by 49.7% and 23.0% respectively [3] - C-end smart hardware, influenced by a 300% increase in translation devices, grew by 22.4% [3] - The company continues to invest in R&D, with expectations to match the best overseas models by 2024 [3] Profit Forecast and Valuation - Projected net profits for 2024, 2025, and 2026 are 6.9 billion RMB, 7.6 billion RMB, and 8.4 billion RMB respectively, with corresponding PE ratios of 149.1, 135.3, and 122.0 [4]