IFLYTEK(002230) 民生证券·2024-05-03 02:00Investment Rating - Maintain "Recommend" rating [1][2] Core Views - Iflytek's Spark model is gradually benchmarking against GPT-4, with AI applications continuously being implemented [1] - The company is a leading domestic AI enterprise, and its large model layout and AI application implementation are viewed positively [2] - Revenue for 2024-2026 is projected to be 21.747 billion, 24.141 billion, and 27.717 billion yuan, respectively, with EPS expected to be 0.30, 0.41, and 0.50 yuan [2] Financial Performance - 2023 revenue reached 19.65 billion yuan, a 4.41% year-on-year increase, with net profit attributable to the parent company at 657 million yuan, up 17.12% [2] - 2024 Q1 revenue was 3.646 billion yuan, a 26.27% year-on-year increase, but net profit attributable to the parent company was -300 million yuan [2] - Key business segments in 2023: - Education business revenue was 5.564 billion yuan, down 9.70% [2] - Big data advertising platform revenue grew 41.61% [2] - Smart hardware business revenue increased 22.35%, with consumer hardware GMV up 84% [2] - Digital government industry applications revenue grew 22.79% [2] - Automotive business revenue increased 49.71%, with over 7.5 million sets of pre-installed intelligent products shipped [2] - Medical business revenue grew 15.41% [2] Spark Model Development - Spark V3.5 was officially upgraded on January 30, 2024, with language understanding, mathematical ability, and voice interaction surpassing GPT-4 Turbo, code reaching 96% of GPT-4 Turbo, and multimodal understanding reaching 91% of GPT-4V [2] - The model has been deeply applied in education, healthcare, automotive, office, industrial, and smart hardware industries [2] Financial Projections - 2024-2026 revenue growth rates are projected at 10.67%, 11.01%, and 14.81%, respectively [3] - Net profit attributable to the parent company is expected to grow by 5.76%, 35.34%, and 24.13% in 2024-2026 [3] - PE ratios for 2024-2026 are 150X, 111X, and 89X, respectively [3]