Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Views - The company achieved its first positive adjusted EBITDA in 1Q24, with a corresponding adjusted EBITDA margin of 1.9% [2]. - Revenue for 1Q24 was CNY 1.78 billion, a year-on-year decline of 4.8%, primarily due to a reduction in CDN business scale and stricter selection of industry cloud projects, although partially offset by growth in AI revenue [2]. - The gross margin reached 16.5%, marking a historical high and an increase of 6.1 percentage points year-on-year and 1.8 percentage points quarter-on-quarter, driven by optimization of public cloud revenue structure and effective cost control [2]. Summary by Sections 1Q24 Performance - Public cloud revenue was CNY 1.19 billion, up 2.9% year-on-year and 12.9% quarter-on-quarter, mainly due to AI revenue growth [2]. - AI revenue reached CNY 160 million in 1Q24, a 93% increase quarter-on-quarter, accounting for 13.5% of public cloud revenue [2]. - Industry cloud revenue was CNY 590 million, down 17.2% year-on-year and 12.3% quarter-on-quarter, impacted by strict project selection and the Spring Festival holiday [2]. 2024 Outlook - AI is expected to be a key growth driver for public cloud business, with capital expenditure exceeding CNY 1.2 billion in 1Q24 to enhance infrastructure for AI training [2]. - The establishment of a wholly-owned subsidiary, Beijing Kingsoft Intelligent Technology Co., Ltd., aims to seize opportunities in enterprise digital transformation and AI professional services [2]. - The company anticipates a steady improvement in gross margin to 17% and an adjusted EBITDA margin of 4% for the full year 2024 [2]. Profit Forecast and Valuation - The report adjusts the net profit forecasts for 2024-2026, increasing by 3.1% for 2024 to a loss of CNY 1.32 billion, and maintaining a "Buy" rating based on expected improvements in profitability [2].
金山云：1Q24业绩点评：1Q24调整EBITDA首次转正，成立全资子公司积极把握AI发展机遇