Shanghai Suochen Information Technology (688507)2024-10-10 08:08Investment Rating - The report maintains an "Accumulate" rating for the company [3][5]. Core Views - The acquisition of WIPL-D software source code positions the company as the sole owner in the Asia-Pacific region, enhancing its product matrix and competitive edge in the electromagnetic simulation software market [1][4]. - The company is expected to achieve significant revenue growth, with projections of 4.51 billion CNY in 2024, 6.26 billion CNY in 2025, and 8.35 billion CNY in 2026, alongside net profits of 630 million CNY, 1.05 billion CNY, and 1.56 billion CNY respectively [5][6]. Financial Summary - Revenue Growth: The company reported revenues of 268 million CNY in 2022, with a year-on-year growth rate of 39.1%. This is expected to rise to 320 million CNY in 2023 and further to 451 million CNY in 2024, reflecting a growth rate of 40.9% [1][6]. - Net Profit: The net profit for 2022 was 54 million CNY, with a growth rate of 6.8%. Projections indicate a rise to 63 million CNY in 2024, with a growth rate of 9.1% [1][6]. - Earnings Per Share (EPS): The latest diluted EPS was reported at 0.60 CNY in 2022, expected to increase to 0.70 CNY in 2024 and 1.75 CNY by 2026 [1][5]. - Price-to-Earnings (P/E) Ratio: The P/E ratio is projected to decrease from 68.9 in 2022 to 23.7 by 2026, indicating improved valuation as earnings grow [1][5]. - Return on Equity (ROE): The ROE is expected to improve from 2.0% in 2023 to 4.9% in 2026, reflecting better profitability and efficiency [1][5].