Kunlun(SZ:300418) China Post Securities·2024-05-14 07:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price compared to the benchmark index [9]. Core Views - The company has shown strong revenue growth driven by its browser commercialization strategy and the expansion of the Opera Ads platform, with 2023 revenue reaching 4.915 billion yuan, a year-on-year increase of 3.78% [5][6]. - The company has launched a stock incentive plan to stabilize its core talent team, which includes performance targets for cumulative revenue over the next three years [8]. - The company has successfully developed a diverse AI product matrix, enhancing its competitive advantage in the AI field, with the latest iteration of its AI model achieving global leading performance metrics [7]. Financial Summary - In 2023, the company achieved a net profit of 1.258 billion yuan, up 9.15% year-on-year, while the first quarter of 2024 saw a net loss of 187 million yuan [5][6]. - Revenue projections for 2024-2026 are estimated at 5.534 billion, 6.258 billion, and 7.223 billion yuan, respectively, with corresponding net profits of 909 million, 1.044 billion, and 1.260 billion yuan [9][11]. - The company's gross margin remained high at 78.84% in 2023, with R&D expenses increasing significantly to support its AI initiatives [6][11].