Investment Rating - The investment rating for the company is "Buy" [2] Core Viewpoints - The company, Zhaoyi Information, has launched SnapDevelop, a rare low-code IDE platform in China, which is expected to penetrate the market rapidly. The product has a high barrier to entry and aims to assist enterprise developers in quickly developing cloud-native applications, boasting a development efficiency increase of 2-3 times compared to traditional methods [5][19] - SnapDevelop has already attracted over 5,000 stable trial users since its first official version release in June 2024, and the potential market is vast, with over 600 million active .NET developers globally [5][19] - The company has formed a comprehensive partnership with DCloud, a leading developer service platform in China, which will promote SnapDevelop through various channels, enhancing its market penetration [5][18] Summary by Sections Product Overview - SnapDevelop is a native low-code IDE tool that supports .NET cloud-native application development and can replace mainstream commercial development tools like Visual Studio and Rider. The product's high barriers to entry stem from its unique capabilities and the experience gained from previous product lines [9][19] - The product features include drag-and-drop component code generation, a visual designer for backend construction, and AI-assisted development, which collectively enhance the development process [12][14] Market Potential - The global active .NET (C) developer population exceeds 6 million, with an estimated 1.8 million developers focused on cloud-native application development. Additionally, the product may support the HarmonyOS development environment, which has around 2.54 million developers [19] - The pricing strategy involves a free trial phase followed by a low-cost subscription model, allowing for potential price increases as product features expand [19] Competitive Landscape - SnapDevelop is positioned against two notable AI IDEs: Trae and Cursor. Trae is a lightweight AI-native IDE suitable for small projects, while Cursor integrates AI capabilities into a VS Code-like environment. SnapDevelop stands out due to its independence and specialization in .NET cloud-native development [20][29] Financial Projections - The company forecasts earnings per share (EPS) of 0.27, 0.52, and 0.81 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 154.48, 78.98, and 51.23 [5][6]

Core Viewpoint - The company has strategically positioned its firmware products to enhance support for ARM and RISC-V architectures, responding to the growing market demand for these technologies [1] Group 1: Technology and Market Position - The upstream of the firmware business consists of chip manufacturers, with the main CPU architectures in the PC/server market being X86, ARM, MIPS, and RISC-V, where X86 holds a dominant position [1] - ARM architecture chips and RISC-V instruction set-based chips are experiencing strong growth, with RISC-V chips expanding from low-power MCUs to desktop and server applications [1] Group 2: Customer Engagement and Sales Strategy - Due to the high importance and stability requirements of firmware products, the approach to acquiring new customers differs; initially, technical development services are provided to CPU manufacturers to create mature firmware products compatible with their CPUs [1] - The customer onboarding period typically takes 2-4 years before achieving mass sales to computing device manufacturers [1] Group 3: Industry Ecosystem and Standards - The company is a member of the international UEFI forum and the Global Computing Consortium (GCC) new generation BIOS committee, collaborating with chip manufacturers like Haiguang, Zhaoxin, Longxin, and Feiteng [1] - The company actively participates in the formulation of firmware-related industry standards and national standards, contributing technical expertise to the development and widespread application of firmware and open-source systems [1]

Investment Rating - The report maintains a "Recommended" rating for the company [3][5]. Core Viewpoints - The strategic partnership with DCloud aims to establish the company as a leader in AI programming software, leveraging DCloud's extensive user base of 9 million front-end developers and over 1 billion monthly active users on mobile engines [1]. - The SnapDevelop tool, developed by the company's subsidiary, is positioned to support DCloud's software ecosystem, enhancing its market penetration and application among developers [2]. - The company has built an independent sales network with over 3,000 clients, including Fortune 500 companies, and its products are primarily used in finance, healthcare, government, and software industries [3]. Financial Forecast and Metrics - Projected revenues for 2023 to 2026 are as follows: 320 million in 2023, 323 million in 2024, 377 million in 2025, and 430 million in 2026, with growth rates of 13.5%, 0.9%, 16.7%, and 14.2% respectively [4][10]. - Expected net profit attributable to shareholders is forecasted to be 56 million in 2023, 32 million in 2024, 75 million in 2025, and 102 million in 2026, with growth rates of 10.1%, -43.2%, 134.8%, and 36.1% respectively [4][10]. - The price-to-earnings (PE) ratios are projected to be 92 in 2023, 162 in 2024, 69 in 2025, and 51 in 2026 [4][10].

Investment Rating - The report maintains a "Recommended" rating for the company [3][5]. Core Viewpoints - The strategic partnership with DCloud, a leading platform with 9 million front-end developers, positions the company to become a leader in AI programming software by leveraging DCloud's extensive user base and promotional channels [1][2]. - The development of SnapDevelop, an independent low-code development tool with proprietary technology, is a significant milestone in the company's global strategy, enhancing its competitive edge [2]. - The acquisition of Aipuyang and the collaboration with DCloud are expected to accelerate the promotion of IDE products and open long-term growth opportunities in the AI programming business [3]. Financial Forecast and Metrics - Projected revenues for 2024-2026 are estimated at 3.23 billion, 3.77 billion, and 4.30 billion CNY, with growth rates of 0.9%, 16.7%, and 14.2% respectively [4][10]. - The net profit attributable to shareholders is forecasted to be 320 million, 750 million, and 1.02 billion CNY for the years 2024-2026, with corresponding PE ratios of 162X, 69X, and 51X [3][4]. - The earnings per share (EPS) are expected to be 0.26, 0.62, and 0.84 CNY for 2024-2026 [4][10].

Investment Rating - The report gives a "Buy" rating for the company, with a target price of 39.10 CNY [4]. Core Insights - The company is a leading player in the firmware sector for computing devices, with significant barriers to entry in both X86 and ARM architectures. The acquisition of Aipuyang Technology enhances its position in the IDE market, allowing it to benefit from trends in domestic substitution and AI computing power development [4][2]. - The company has a strong foothold in the domestic BIOS market, being the only supplier of X86 architecture BIOS and BMC firmware in China, and is well-positioned to capitalize on the growth of AI server sales and domestic substitution trends [2][4]. - The integration of AI capabilities into its IDE product SnapDevelop is expected to significantly enhance coding efficiency and open up long-term growth opportunities [3][4]. Summary by Sections 1. Company Overview - Jiangsu Zhuoyi Information Technology Co., Ltd. specializes in "independent, secure, and controllable" cloud computing business, mastering multi-architecture BIOS and BMC firmware technology. The company has been listed on the Shanghai Stock Exchange since December 2019 [10][11]. 2. Business Performance - The company has shown steady revenue growth, with total revenue increasing from 120 million CNY in 2016 to 320 million CNY in 2023, reflecting a compound annual growth rate (CAGR) of 15.08%. The revenue for the first three quarters of 2024 reached 240 million CNY, a year-on-year increase of 4.53% [15][18]. - The net profit attributable to shareholders increased from 28.62 million CNY in 2016 to 56 million CNY in 2023, with a CAGR of 19.34%. However, a decline of 43% is expected in 2024 due to various factors including reduced investment income and amortization of intangible assets from acquisitions [17][18]. 3. Market Position and Trends - The global AI hardware market is projected to reach 34.7 billion USD by 2026, with a CAGR of 17.3% from 2022 to 2026. The domestic market for AI servers is also expected to grow significantly, with a forecasted shipment of 691,000 units by 2027 [2][34]. - The company is actively investing in the domestic substitution industry chain and has established partnerships with various domestic chip manufacturers, enhancing its competitive edge in the market [2][51]. 4. Financial Projections - The company forecasts net profits of 32 million CNY, 75 million CNY, and 102 million CNY for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 148X, 63X, and 46X [4][5].

Financial Performance - Total revenue for 2024 reached RMB 323.02 million, a year-on-year increase of 0.87%[3] - Net profit attributable to shareholders decreased by 42.86% to RMB 32.09 million compared to the previous year[3] - Net profit excluding non-recurring gains and losses increased by 137.49% to RMB 14.47 million[3] - Basic earnings per share fell by 41.30% to RMB 0.27[3] Assets and Equity - Total assets at the end of the reporting period were RMB 1,551.31 million, down 5.39% from the beginning of the period[4] - Shareholders' equity attributable to the parent company decreased by 18.66% to RMB 844.26 million[4] Acquisitions and Expenses - The company completed the acquisition of Aipuyang Technology, which is now a wholly-owned subsidiary, impacting net profit by approximately RMB 15.89 million due to intangible asset valuation[6] - The company recorded share-based payment expenses of RMB 7.74 million, affecting net profit by RMB 5.45 million[7] Investment Income and Management - The decline in net profit was primarily due to a significant reduction in investment income compared to the previous year[8] - The company has strengthened accounts receivable management, leading to a substantial decrease in bad debt provisions compared to the previous year[8]

Summary of Conference Call Company and Industry Overview - The company is primarily engaged in technology software, focusing on two major product lines: firmware (BIOS and BMC) for device design and cloud application services [1][2] - The industry is experiencing stable growth, particularly in self-controlled products, with a notable increase in domestic product promotion [2] Core Insights and Arguments - The company has seen a consistent revenue growth of approximately 10% annually, translating to around $12 million in revenue [3] - The global market for IDE tools is significant, with an estimated 1.6 million engineers worldwide, indicating substantial growth potential [4] - AI integration in software development is enhancing efficiency by approximately 30% for medium to large software projects, with a focus on IDE companies leveraging AI capabilities [5] - The company is positioning itself against larger competitors by focusing on niche markets and specific use cases rather than competing directly with general-purpose IDEs [7][8] Competitive Landscape - The company acknowledges competition from major players like Huawei and emphasizes its strategy of developing specialized IDE tools for specific scenarios [7] - The market share in the domestic sector is approximately 90%, while the international market share is less than 5% [12] Financial Performance and Projections - The company anticipates a revenue increase of about 15% for existing products in 2025, excluding new product launches [16] - The gross margin has been under pressure, but there are expectations for improvement as the company refines its product offerings and operational efficiencies [15] Product Development and Strategy - The company is developing lightweight IDE products aimed at small to medium-sized enterprises, integrating AI to enhance functionality [9][10] - There is a focus on collaboration with other companies to expand user bases, with plans to onboard 500,000 users through partnerships [15][18] - The company is also exploring integration with the HarmonyOS ecosystem, aiming to provide tools that facilitate development within this framework [19] Additional Insights - The company is adapting to market demands by shifting towards self-sufficient and controllable solutions, particularly in response to government encouragement for domestic equipment adoption [11] - The company is managing operational costs effectively, with a reduction in base expenses expected compared to the previous year [17] Conclusion - The conference highlighted the company's strategic focus on niche markets, AI integration, and collaboration to drive growth in a competitive landscape, while also addressing financial performance and future projections.

Summary of the Conference Call for 卓易信息 Company Overview - 卓易信息 primarily engages in the development of programming software products, with core products including BIOS and DMC firmware, and IDE acquired in 2024. The company mainly serves the European and American markets, generating annual revenue of approximately $18 million, with a growth rate of 5% to 10% per year [3][3]. Core Business and Products - The company focuses on IDE tool development and is actively expanding into ICD development, having started to explore Java and HarmonyOS in 2024, with plans to launch a commercial version in 2025 [3][3]. - AI-enabled IDE tools enhance efficiency by 20% to 30% for medium to large software developers, while AI automatic programming tools, which rely 80% on AI, are more suitable for beginners and lower-end users [4][4]. Financial Performance - In 2024, 卓易信息 achieved revenue exceeding 300 million RMB, with a subscription model ensuring good cash flow and no accounts receivable issues. For 2025, the company expects a natural growth of 10% to 15% without launching new products [5][5]. Market Demand - The global automatic programming market is substantial, with the Chinese market estimated at approximately 15 billion RMB and the overseas market nearing $30 billion. Overseas users exhibit better payment habits, with a higher proportion purchasing software usage rights compared to domestic companies [6][6]. Customer Base and Growth - The company has 60,000 to 80,000 customers overseas, with 18,000 being paying users, averaging payments of around 6,000 RMB each. This segment experiences stable annual growth of 5% to 10% [7][7]. - The DotNet global user base is approximately 8 million, primarily overseas, with recent downloads reaching 5,000 in the last month [7][7]. Product Launch Plans - A domestic developer preview version is set to be released in March in collaboration with Beijing Digital Paradise, with Java and HarmonyOS versions expected in December [8][8]. Collaboration and Technology Integration - The company has partnered with NVIDIA to integrate ChatGPT into its products, with plans to launch a low-end product for junior engineers in June [9][10]. Competitive Landscape - 卓易信息 differentiates itself from other low-code platforms by providing a comprehensive IDE tool that allows users to develop and modify independently, unlike competitors who offer limited modifications on existing platforms [12][12]. Future Directions - The company plans to continue its subscription model and may enhance user engagement through additional AI features, although overall pricing may decline due to market trends [17][18]. - Current active users number around 18,000, with new products attracting approximately 5,000 active users [19][19]. Language Support and Commercialization - The company supports dotNet and JavaScript, with plans to commercialize Java and HarmonyOS based on user penetration and payment metrics from the first quarter [20][20].

Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The company is advancing in both mergers and acquisitions as well as technology upgrades, particularly in the fields of domestic innovation and development tools [1] - The acquisition of a 48% stake in Aipu Yang Technology has been completed, resulting in full ownership, which is expected to stabilize and slightly grow the revenue from the PowerBuilder product line [3] - The low-code IDE tool SnapDevelop has gained traction with nearly 4,000 trial users, showcasing AI capabilities that enhance coding efficiency [4] - The company is positioned as a leading supplier of core firmware in the domestic innovation sector, collaborating with major domestic chip manufacturers and maintaining a strong market presence [5][7] Financial Forecast - Revenue projections for 2024, 2025, and 2026 are estimated at 395 million, 502 million, and 644 million respectively, with corresponding EPS of 0.57, 0.78, and 0.99 [8][10] - The company is expected to experience significant growth, with revenue growth rates of 23.3%, 27.2%, and 28.3% for the years 2024 to 2026 [10] - The report indicates a steady increase in net profit, with projections of 69 million, 95 million, and 120 million for the same years [10]

Investment Rating - The report assigns a "Buy" rating to the company [2] Core Insights - The company is a leading player in the domestic BIOS/BMC firmware market and offers a rare AI programming platform, indicating strong growth potential [5][9] - The company has a projected market size of nearly 800 billion RMB for its AI programming platform and approximately 65 billion RMB for the firmware industry [5][46] - The company is expected to benefit from the acceleration of domestic substitution trends in both its IDE and firmware businesses [5][30] Company Overview - The company, established in 2008, focuses on the "independent, secure, and controllable" cloud computing industry chain, providing integrated development tools (IDE) and firmware for computing devices [9][11] - The company has a strong foothold in the cloud computing firmware market, being one of the few firms capable of developing BIOS for multiple architectures including X86, ARM, and MIPS [11][49] Financial Analysis - The company reported total revenue of 320 million RMB in 2023, a year-on-year increase of 13.5%, with a compound annual growth rate of approximately 8.48% from 2019 to 2023 [13][14] - The projected earnings per share (EPS) for 2024-2026 are 0.38, 0.53, and 0.66 RMB, respectively, with corresponding price-to-earnings (P/E) ratios of 112.09, 81.82, and 65.23 [6] IDE Business - The company has acquired Aipuyang Technology to enhance its application development capabilities, focusing on integrated development tools (IDE) [20] - The SnapDevelop platform, launched in 2024, is a low-code IDE that significantly improves development efficiency by 2-3 times compared to traditional methods [22][30] Firmware Industry - The firmware market is characterized by high barriers to entry, with the company being the only major Intel-authorized supplier in mainland China [48][49] - The total market size for BIOS and BMC firmware is estimated at around 65 billion RMB globally, with the domestic market size approximately 21 billion RMB [46][41]