上半年营收基本稳定，利润下滑明显。2024H1 公司实现营收7.05 亿元，同比下降1.8%；归母净利润为0.24 亿元，同比下降43.99%；经营活动产生的现金流量净额为0.1 亿元，同比降低86.76%。公司Q2 营收为3.47 亿，同比降低4.43%，环比下降2.96%；Q2 归母净利润为-0.01 亿元，同比-105.07%，环比下降104.52%，由盈转亏。Matters:
Wanxing Technology released its 2024 semi-annual report. In the first half of 2024, the company achieved revenue of 0.705 billion yuan, a year-on-year decrease of 1.8%; net profit to mother was 0.024 billion yuan, a year-on-year decrease of 43.99%; deducted non-net profit of 0.016 billion yuan, a year-on-year decrease of 54.58%.
Commentary:
Revenue was generally stable in the first half of the year, and profit declined significantly. 2024H1 achieved revenue of 0.705 billion yuan, a year-on-year decrease of 1.8%; net profit to mother was 0.024 billion yuan, a year-on-year decrease of 43.99%; and net cash flow from operating activities was 0.01 billion yuan, a year-on-year decrease of 86.76%. The company's Q2 revenue was 0.347 billion, down 4.43% year on year, down 2.96% month on month; Q2 net profit to mother was -0.001 billion yuan, -105.07% year over year, down 104.52% month on month, from profit to loss.
The company continues to increase investment in AI, and the gross margin is relatively stable. The company's 2024H1 operating costs increased by 32.62% year-on-year to 0.044 billion yuan, mainly due to increased AI investment leading to an increase in server costs. The company has 851 people specialized in the research and development of corresponding products, accounting for 54% of the company's total number of employees. The company's gross margin in the first half of 2024 was 93.76%, down 1.62 pp year on year; Q2 2024 gross margin was 93%, down 2.06pp year on year, down 1.50pp year on month.
The company focuses on improving product functionality and experience and launches new products. The company closely follows the needs of users and scenarios, actively accumulates cross-modal algorithms, video and image technology, and continuously strengthens its position as a pioneer in the application of audio and video intelligence technology by building a strong computing power base, accumulating high-quality training data, and optimizing algorithm engineering. In the video creative line, Wanxing Meowing/Filmora released the V13.5 version; Wanxing Broadcast/Virbo quickly iterated the version and launched video translation to optimize the digital photo feature, and achieved a year-on-year increase in registered users. In terms of new products, the company released Selfie U, a mobile AI special effects product in the first half of the year, which supports one-click image restoration and automatic generation of fun animated videos to explore new mobile creative gameplay; at the same time, the cloud product Media.io Studio is positioned as an AIGC video creation efficiency tool to integrate and link various functions within the product to achieve rapid growth in monthly active traffic and sales revenue.
Publish share repurchase plans to be used for employee stock ownership plans or equity incentives. The company announced a share repurchase plan. The repurchase amount is not less than RMB 20 million and no more than 40 million, and the repurchase price is not more than 71.78 yuan/share.
Investment advice: The company firmly embraces AIGC technology to continuously innovate products and enhance product functional experience. The AIGC functions of its products will be further improved, and the AIGC will continue to be optimistic about AIGC enabling product applications. Based on the semi-annual report results and the commercialization process of AI applications, we adjusted our predictions for the company's main financial indicators as follows:
The company's revenue for 2024-2026 was 1.63, 1.897, and 2.206 billion yuan (previous values were 1.8, 2.13, 2.485 billion yuan), and net profit attributable to the parent company was 0.103, 0.127, and 0.148 billion yuan (previous values were 0.142, 0.176, 0.205 billion yuan), and the corresponding EPS was 0.53, 0.66, and 0.77 yuan respectively (previous values were 1.03, 1.28, and 1.49 billion yuan) ), maintaining a “recommended” rating.
Risk warning: Advances in AI technology fall short of expectations; progress in the functions and integration of its products falls short of expectations; industry competition in the field of large models intensifies.
