EMPYREAN(SZ:301269) Founder Securities·2024-08-12 06:54Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected increase of over 10% relative to the benchmark index in the next 12 months [4][9]. Core Insights - The company, Huada Jiutian, reported a revenue of 444 million yuan for H1 2024, reflecting a year-on-year increase of 9.62% but a decrease of 54.81% compared to the previous half [1]. - The net profit attributable to shareholders was 37.87 million yuan, showing a significant decline of 441.88% year-on-year [1]. - The company continues to focus on R&D, with R&D expenses amounting to 349.24 million yuan, which is a substantial increase in personnel costs and incentives [1]. - The company is enhancing its core product matrix and accelerating the development of its ecosystem, particularly in the EDA (Electronic Design Automation) tools sector [1]. Financial Performance Summary - The projected total revenue for the company from 2024 to 2026 is expected to be 1.267 billion yuan, 1.632 billion yuan, and 2.064 billion yuan, with growth rates of 25.35%, 28.83%, and 26.48% respectively [5]. - The net profit attributable to shareholders is forecasted to be 108 million yuan, 221 million yuan, and 392 million yuan for the same period, with year-on-year growth rates of -46.23%, 104.32%, and 77.84% respectively [5]. - The earnings per share (EPS) are projected to be 0.20 yuan, 0.41 yuan, and 0.72 yuan for 2024, 2025, and 2026 [5]. Industry Context - The industry is currently in a critical phase of promoting domestic substitution, necessitating significant investments in R&D and talent [1]. - The leading domestic manufacturers are expected to expand their market share as product performance and diversity improve [1].