Kunlun(300418) 财信证券·2024-05-27 05:00Investment Rating - The report assigns an "Accumulate" rating to the company [1] Core Views - The company reported a revenue of 4.915 billion yuan and a net profit of 1.258 billion yuan for 2023, with year-on-year growth rates of 3.78% and 9.15% respectively. However, for Q1 2024, the company experienced a revenue of 1.208 billion yuan and a net loss of 0.187 billion yuan, marking a significant decline [5] - The revenue growth was driven by search engine and advertising businesses, while costs and unstable investment returns led to the decline in Q1 2024 performance. Notably, search engine revenue grew by 21.22% to 1.143 billion yuan in 2023, and online advertising revenue increased by 28.95% to 1.653 billion yuan [5] - The company is expanding its AI capabilities, launching new features and products, including AI search and social products, which are expected to enhance its market position in the long term [6][8] Financial Summary - The company forecasts revenues of 5.493 billion yuan, 6.164 billion yuan, and 6.844 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 0.799 billion yuan, 0.844 billion yuan, and 0.976 billion yuan [8] - The earnings per share (EPS) are projected to be 0.66 yuan, 0.69 yuan, and 0.80 yuan for the years 2024, 2025, and 2026, with price-to-earnings (P/E) ratios of 54.18, 51.28, and 44.36 respectively [8][10] - The company’s total market capitalization is approximately 43.279 billion yuan, with a circulating market capitalization of about 39.409 billion yuan [1] Business Developments - The company is actively investing in AI technologies, with a focus on building a comprehensive AI ecosystem that includes search, music, video, social, and gaming applications [6][8] - The launch of the first phase of a restricted stock incentive plan aims to motivate key personnel, with performance targets set for revenue growth in the coming years [8]