The company's recent situation

On October 24, the iFLYTEK 2024 Global Developers Festival opened. iFLYTEK 4.0 Turbo was unveiled at the conference. The model capabilities were further upgraded, and the domestic intelligent computing platform “Flying Star 2” was officially launched.

reviews

Model capability: Released a large model with the Cyberfly Spark 4.0 Turbo base. The ability surpassed GPT-4 Turbo, and the efficiency was increased by 50%. Spark's mathematical ability continues to be upgraded. It has deployed algorithms such as ultra-long thought chains, tree search, and self-reflection evaluation. The self-reflection algorithm has been opened to developers. The company expects to achieve O1's mathematical ability by the end of the year, open the ceiling on interaction and teaching fishing ability, and strengthen product capabilities such as agents and learning machines. Education, health care, and central state-owned enterprises are still the primary floor plans.

The education sector exalted cooperation to create thought chain data. The big model and teachers develop the human-robot co-development thinking chain, and the first AI job filter was launched. iFLYX has reached a strategic partnership with the Academy of Educational Sciences and Huawei to learn excellent examples, create machine thinking chains and teaching problem chains, and strive to cultivate students' ability to learn and ask questions. AI accuracy has been further implemented. The homework filter classifies topics as “must do,” “choose to do,” and “don't do” based on students' personalized files, increasing the problem solving rate by 20% on the basis of reducing homework time by 28%.

Medical sector: Smart Medical Assistant, Smart Hospital, and iFLYX achieved large-scale application results and officially released the Spark Medical Imaging Big Model. Smart Medical Assistant has assisted primary care physicians with 0.86 billion diagnoses; Smart Hospital has served more than 600 grade hospitals and completed 0.6 billion disease follow-ups; iFLYX has completed 0.11 billion AI consultations and received 98% positive user reviews.

Enterprise service sector: iFLYX's reliance on computing power and full-process solutions is favored by central state-owned enterprises, forming a large-scale effect. Among the applications implemented by central state-owned enterprises, iFLY Spark won the highest number of bids, making it the first choice for central enterprises such as CNPC and CNOOC.

Automotive sector: Starfire big model on the side of the first car, 1.3B parameters, response time 40 ms. The large model on the end side lost less than 1% of the effect compared to the cloud side, and the first sound on the end side was 40ms. Duan-cloud integration and interaction is as low as 1.3s. Starting in Q4 this year, the big end side models will be launched on models such as Chery, Guangzhou Automobile, and Great Wall.

The computing power situation is progressing optimistically. iFLYTEK has the first 10,000 card localized computing power platform in the country in cooperation with Huawei. At the conference, the nationally produced computing power platform Flying Star 2 was announced to expand the computing power from 10,000 cards to 10,000 P and help iterate the model.

Profit forecasting and valuation

We have maintained our profit forecast, outperforming industry rating, and target price of 53 yuan (based on the 2025 SOTP), with 16.5% upside compared to the present.

risks

Large-model development costs fell short of expectations; market competition intensified.