The company's recent situation
iFLYTEK released the Spark Model V4.0 on June 27, 2024, and showcased the results of its application in various fields at the press conference. Spark V4.0 is the benchmark GPT-4 Turbo in terms of text generation, language understanding, knowledge questioning, logical reasoning, and mathematics. In addition to upgrading content traceability functions, it also enhances the ability to process long text, long graphics, and long speech, and further enhances personalized assistant capabilities.
reviews
The model's comprehensive capabilities were benchmarked against GPT-4Turbo, and eight of the twelve tests surpassed GPT-4Turbo. Spark 4.0 improves complex scene capabilities, such as complex reasoning, multi-modal reasoning, and long text processing. Spark 4.0 introduced a content traceability function, which allows users to understand the basis for model generation answers, thereby reducing the risk of large models generating illusory information. In addition, iFLY Spark 4.0 has further upgraded its personalized assistant capabilities. Users can use historical information and personalized settings to generate content that suits their own style and needs. Through the personal space function, users can store content related to their studies, work, life, and health, so that questions and answers can be more personalized and specialized. iFLYTEK's voice recognition technology continues to be upgraded to support switch-free communication in 37 dialects and 37 languages, and has shown excellent differentiation recognition performance in high-interference scenarios.
In the field of education, intelligent review machines were released, AI adaptive question-answering and learning aids were improved, and learning machines were empowered. 1) Intelligent review machine. As a software and hardware integrated product that empowers AI in educational scenarios, the intelligent review machine enables Daifuku to improve correction efficiency. The paper approval time per class is reduced from 90 minutes to 5 minutes, reducing the burden on teachers and providing students with personalized learning paths. The company expects to use hardware to drive operating revenue to open up room for penetration. 2) AI's adaptive question-answering and auxiliary learning capabilities have made remarkable progress in language and English subjects, further enhancing the product power of learning machines. The live demonstration uses a tutor-like model to guide English fill-in-the-blank questions. We expect to expand to the “Inspiration Index” for mathematical subjective questions in the future in the context of improving mathematical ability to further enhance product power.
In the medical field, with the support of Spark's multi-modal capabilities, iFLYX continues to improve its diagnostic accuracy and individualization capabilities. The upgraded version of the iFLYX App provides a personal digital health space, including disease history and medication history, and supports family role switching and file traceability functions. It supports inquiries about 1,600 common diseases and 2,800 common drugs to meet the core needs of users before, during, and after medical examinations. In addition, the iFLYX App has passed various authoritative certifications for data security and privacy protection to ensure the security and privacy protection of user data.
Profit forecasting and valuation
Considering the profit-side improvements brought about by the company's computational power side cost optimization, we raised our 24/25 profit forecast by 2.7%/11.7% to $9.03/1.243 billion, maintaining an outperforming industry rating and target price of 58 yuan. Based on the 2024 SOTP, there is 34.4% upside compared to the current stock price.
risks
Large-model development costs fell short of expectations; market competition intensified.