Wondershare(300624) 国海证券·2024-10-29 04:00Investment Rating - Maintained "Overweight" rating [1] Core Views - The company's performance is under short-term pressure due to prolonged product promotion cycles and rising traffic costs, but it continues to actively embrace generative AI and focuses on digital creative vertical scenarios, aiming to provide a full-chain digital creative product solution for global markets [3] - Multiple products have undergone major version updates, with potential for accelerated growth in the future [4] Financial Performance - Revenue for the first three quarters of 2024 was RMB 1.053 billion, a year-on-year decrease of 3.91% [2] - Net profit attributable to the parent company for the first three quarters of 2024 was -RMB 5 million, a year-on-year decrease of 108.48% [2] - In Q3 2024, revenue was RMB 348 million, a year-on-year decrease of 7.93%, and net profit attributable to the parent company was -RMB 30 million, a year-on-year decrease of 242% [2] Product Updates - Filmora V14 was launched overseas on September 28, 2024, with comprehensive upgrades to its AI capabilities [4] - EdrawMind V12 was launched in August 2024, with increased paid users and renewal sales, and its HarmonyOS version entered the HarmonyOS App Store for public testing [4] - PDFelement V11 was released with intelligent, integrated, and professional upgrades [4] - SelfyzAI, an AI-powered image product, saw continuous growth in user numbers and revenue [4] Financial Forecasts - Revenue for 2024-2026 is projected to be RMB 1.522 billion, RMB 1.762 billion, and RMB 2.099 billion, respectively [6] - Net profit attributable to the parent company for 2024-2026 is expected to be RMB 62 million, RMB 83 million, and RMB 110 million, respectively [6] - The current stock price corresponds to a PE ratio of 193X, 146X, and 109X for 2024-2026 [6] Market Performance - The stock price as of October 28, 2024, was RMB 64.96, with a 52-week range of RMB 37.92-124.04 [3] - The total market capitalization was RMB 12.559 billion, with a circulating market capitalization of RMB 11.123 billion [3] Cost Structure - Gross margin for the first three quarters of 2024 was 93.72%, a year-on-year decrease of 1.47 percentage points, mainly due to increased computing costs for AI functionalities [3] - Sales/management/R&D expense ratios for the first three quarters of 2024 were 55.72%, 11.37%, and 29.07%, respectively, with sales expenses increasing due to global brand-building efforts and R&D expenses rising due to increased AI investments [3]