ZWSOFT(SH:688083) SINOLINK SECURITIES·2024-08-17 13:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [3][11]. Core Insights - The company reported a revenue of 310 million yuan for 1H24, representing a year-over-year increase of 11.8%, with a significant 17.5% growth in 2Q24 [2]. - The net profit attributable to the parent company for 1H24 was 5.976 million yuan, marking a turnaround from loss to profit, with a remarkable 92.8% increase in 2Q24 [2]. - The gross margin for 1H24 stood at 97.71%, reflecting a slight year-over-year increase of 0.24 percentage points [2]. - The company has a strong market position in the CAD sector, maintaining the highest market share in China, with its software products sold in over 90 countries and regions [2]. Performance Summary - Revenue Breakdown: - Standard general software accounted for 93.63% of total revenue, generating 289 million yuan, up 15.94% year-over-year. - 2D products contributed 192 million yuan (66.55% of total revenue), growing 8.33% year-over-year, while 3D products generated 89 million yuan (30.89% of total revenue), increasing by 30.15% [2]. - Regional Performance: - Domestic revenue reached 220 million yuan, up 6.1%, with the commercial market growing by 19.5% to 187 million yuan, while the education market declined by 35.5% to 33 million yuan. - International revenue was 88 million yuan, reflecting a year-over-year increase of 28.68% [2]. Financial Projections - Revenue forecasts for 2024 to 2026 are set at 1.01 billion yuan, 1.22 billion yuan, and 1.44 billion yuan, respectively. - Adjusted net profit projections for the same period are 81 million yuan, 157 million yuan, and 215 million yuan [3][6]. - The current price-to-sales (P/S) ratio is projected at 7.6, 6.3, and 5.3 for 2024 to 2026, indicating a valuation at the lower end since the company's listing [3][6].