Guoxin Securities: Kunlun Wanwei's business performance is expected to gradually improve, maintaining a "better than the market" rating

According to a research report by Guosen Securities, Kunlun Wanwei's Q1 revenue continued to grow in the 24th and 25th years, while investment returns and R&D investment suppressed profit performance. As of the end of March 2025, the annualized revenue ARR of AI music will reach approximately $12 million (monthly revenue of approximately $1 million), and the annualized revenue ARR of short drama platform Dramawave will reach approximately $120 million (monthly revenue of approximately $10 million). From technology to product, commercialization is showing initial results. Overseas markets maintain high growth rates. In 2024, the company's overseas business revenue reached 5.15 billion yuan, a year-on-year increase of 21.9%, accounting for 91.0% of the total revenue; Among them, overseas information distribution and metaverse platform Opera continue to maintain high-speed growth. From big models to AI applications, the company has a comprehensive layout and is expected to become a platform based company for big models and application ecosystems in the AIGC era; Under the continuous commercialization, the business performance is expected to gradually improve, and the rating of "better than the market" will continue to be maintained.