Investment Rating - The investment rating for the company is "Buy" with a target price of 64.66 RMB [4][8]. Core Views - The company reported a revenue of 287 million RMB for Q1-Q3 2024, representing a year-over-year increase of 12.22%, but a significant decline in net profit [1]. - The decline in revenue for Q3 is attributed to delayed order confirmations from downstream customers, but a recovery in revenue is expected in Q4 due to the growth in software business driven by domestic demand [1]. - The overall gross margin for Q1-Q3 2024 was 62.81%, an increase of 2.31 percentage points year-over-year, primarily due to the rapid growth of software revenue [1]. - The company is investing heavily in R&D, with a research expense ratio of 70.02% for Q1-Q3 2024, which is expected to strengthen the synergy between software and hardware products [1]. - The domestic chip design companies are shifting towards localization, which is anticipated to create more business opportunities for the company, leading to accelerated revenue growth in 2025 [1]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 287 million RMB, with a year-over-year growth of 12.22%. However, the net profit decreased by 84.89% to 7.71 million RMB [1]. - The revenue for Q3 was 116 million RMB, down 10.19% year-over-year and 9.64% quarter-over-quarter [1]. Gross Margin and Software Revenue - The gross margin for Q1-Q3 2024 was 62.81%, up 2.31 percentage points from the previous year, attributed to the growth in software revenue [1]. - The company plans to launch new software tools, which are expected to further enhance gross margins [1]. R&D Investment - The company has increased its R&D expense ratio to 70.02% for Q1-Q3 2024, reflecting a commitment to enhancing its software and hardware capabilities [1]. - The focus on improving yield software and WAT hardware is expected to create a competitive barrier and increase market share [1]. Revenue Forecast and Valuation - The company’s revenue is projected to reach 601 million RMB in 2024, with a compound annual growth rate (CAGR) of 90% for the software business from 2024 to 2025 [2][8]. - The target market capitalization for 2025 is estimated at 12.93 billion RMB, corresponding to a target price of 64.66 RMB per share [2][8].
广立微：国产化有望带动25年营收加速增长