IFLYTEK(SZ:002230) Huaxin Securities·2024-05-07 23:30Investment Rating - The report maintains a "Buy" investment rating for the company [4][9]. Core Insights - The company has shown stable operational health with a significant increase in R&D investment, particularly in the development of large models, which is expected to drive future growth [4][8]. - The company reported a revenue of 19.65 billion yuan in 2023, a year-on-year increase of 4.41%, and a net profit attributable to shareholders of 657 million yuan, up 17.12% year-on-year [3][4]. - In Q1 2024, the company achieved a revenue of 3.646 billion yuan, representing a year-on-year growth of 26.27%, but reported a net loss of 300 million yuan, which is a deterioration compared to the previous year [3][4]. Summary by Sections Financial Performance - In 2023, the company’s revenue was 196.50 billion yuan, with a net profit of 6.57 billion yuan, while the net profit after deducting non-recurring items was 1.18 billion yuan, down 71.74% year-on-year [3][4]. - The company’s gross margin was 42.66%, an increase of 1.83 percentage points year-on-year, and the net profit margin was 3.12%, up 0.47 percentage points year-on-year [4][11]. - For 2024, the company is projected to generate revenues of 238.34 billion yuan, with net profits expected to grow significantly in the following years [9][11]. R&D and Technological Advancements - The company has been focusing 70% of its R&D efforts on enhancing its foundational model capabilities, with 50% of its R&D budget allocated to maintaining its leading position in large model development [7][8]. - The launch of the "Starfire" large model has positioned the company as a leader in the domestic market, with performance metrics surpassing those of competitors like GPT-4Turbo [7][8]. Business Development and Market Position - The company has seen a significant increase in its AI ecosystem, with 167.6 thousand new developer teams joining its platform, marking a 229% year-on-year growth [8]. - Collaborations with major enterprises such as Chery Automobile and China Mobile have led to the development of industry-specific applications, enhancing the company's market presence [8].