ZWSOFT(SH:688083) SINOLINK SECURITIES·2024-09-12 08:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [3][10]. Core Insights - The company has launched a stock incentive plan for 2024, with a maximum of 1.07 million shares, representing 0.88% of the total share capital, priced at 51.15 RMB per share. The performance targets include a compound annual growth rate (CAGR) of 20% for total revenue and 3D CAD product revenue from 2024 to 2026 [2]. - The revenue targets for the years 2024, 2025, and 2026 are set at 9.93 billion, 21.85 billion, and 36.15 billion RMB respectively, with corresponding revenue growth rates of at least 19.9%, 20%, and 20% [2]. - The company is positioned at the valuation bottom, with a current market cap corresponding to approximately 6.5 times price-to-sales (PS) for 2025, suggesting a favorable entry point for investors [2]. Revenue and Profit Forecast - The adjusted revenue forecasts for 2024, 2025, and 2026 are 9.97 billion, 12.38 billion, and 15.37 billion RMB respectively. The adjusted net profit forecasts for the same years are 0.92 billion, 1.58 billion, and 2.20 billion RMB [3][5]. - The company’s PS valuation is projected to be 8.1, 6.5, and 5.3 times for 2024, 2025, and 2026 respectively, indicating a decreasing trend in valuation multiples [3][5]. Financial Performance Metrics - The company reported a revenue growth rate of 37.71% in 2023, with a projected growth rate of 20.46% for 2024 and 24.23% for 2025 [5][6]. - The net profit for 2023 is expected to be 61 million RMB, with significant growth projected at 49.03% for 2024 and 72.29% for 2025 [5][6]. - The diluted earnings per share (EPS) are forecasted to be 0.754 RMB for 2024 and 1.300 RMB for 2025, reflecting a positive trend in profitability [5][6].