Wondershare(SZ:300624)2024-06-04 11:00Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of 116.39 CNY for 2024, based on a price-to-sales (P/S) ratio of 9 times [41]. Core Insights - The company is positioned as a leading player in the AIGC (Artificial Intelligence Generated Content) sector, focusing on digital creative empowerment and aiming to become a globally influential software company [12][41]. - In 2023, the company achieved a revenue of 1.481 billion CNY, representing a year-on-year growth of 25.49%, and a net profit of 86.21 million CNY, which is a significant increase of 113.20% year-on-year [2][41]. - The company has launched several innovative products and upgraded existing ones to enhance AI capabilities, including the "Tianmu" multimedia model, which aims to support creators in various audio-visual fields [4][14]. Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 1.481 billion CNY, with a net profit of 86 million CNY, reflecting a year-on-year growth of 25.5% and 113.2% respectively [13][41]. - The forecast for 2024 anticipates revenues of 1.788 billion CNY and a net profit of 111 million CNY, with continued growth expected in subsequent years [8][41]. Business Segments - Video Creative Segment: Expected to maintain high growth rates with projected year-on-year increases of 25% in 2024, 22% in 2025, and 20% in 2026 [41]. - Practical Tools Segment: Anticipated stable growth with a consistent year-on-year increase of 8% from 2024 to 2026 [41]. - Document Creative Segment: Expected growth rates of 15% in 2024, 12% in 2025, and 10% in 2026, driven by the integration of new technologies [41]. - Drawing Creative Segment: Projected growth rates of 20% in 2024, 15% in 2025, and 12% in 2026, benefiting from advancements in text models [41]. Product Development and Innovation - The company has heavily invested in AI technology, with R&D expenses reaching 403 million CNY in 2023, a 15.73% increase from the previous year [14]. - New product launches include AI-driven tools for video marketing, image generation, and virtual companionship, enhancing the company's product offerings [14][41]. - The "Tianmu" model has been officially launched, marking a significant step in AI video creation capabilities [4][41]. Market Position and Strategy - The company maintains a strong focus on building a collaborative ecosystem, partnering with major tech firms like Microsoft and Huawei to enhance its AI capabilities [5][41]. - The B2B segment has shown robust growth, with a 36% increase in 2023, indicating strong demand for the company's services in the enterprise market [5][41]. Future Outlook - The company is expected to continue its growth trajectory, leveraging its advancements in AI technology and expanding its product capabilities to meet the evolving needs of creators [41].