Shanghai Suochen Information Technology (688507)2024-10-12 09:38Investment Rating - The report maintains a "Buy" rating for the company [4][5] Core Insights - The company has acquired the full source code of WIPL-D, a European electromagnetic simulation software, becoming the sole owner in the Asia-Pacific region [4] - WIPL-D has over 30 years of experience in electromagnetic simulation software development, which will enhance the company's product line by integrating the source code into its existing platform [4] - The company aims to leverage its financial and resource advantages to become an industry consolidator, supported by significant funding raised during its IPO and participation in major national research projects [4] - The acquisition addresses the company's previous shortcomings in the electromagnetic field, potentially increasing its market share [4] - The software has applications in specialized fields such as radar and antenna design, which are crucial for military and domestic needs [4] - The military industry is expected to continue growing, while the company is also targeting the civilian market, particularly in the automotive sector and robotics [4] Financial Summary - The company expects to achieve revenues of 5.1 billion, 7.1 billion, and 10.0 billion yuan for the years 2024 to 2026, respectively, with net profits of 0.7 billion, 0.8 billion, and 1.2 billion yuan [5][6] - The projected revenue growth rates are 57.9%, 40.0%, and 40.4% for the years 2024 to 2026 [6] - The company anticipates a gross margin of approximately 68.1% in 2024, improving to 69.8% by 2026 [6][7] - The earnings per share are projected to be 0.76 yuan in 2024, increasing to 1.37 yuan by 2026 [6][7]