ZWSOFT(688083) Guohai Securities·2024-10-30 21:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][8]. Core Views - The company's 3D CAD and overseas business are performing well, with optimism for future product launches and recovery in downstream demand [2][4]. - The company has shown significant growth in revenue and net profit, with a year-on-year revenue increase of 10.11% to 5.12 billion yuan and a net profit increase of 159.69% to 0.11 billion yuan for the first three quarters of 2024 [2][8]. - The company is focusing on cost control and optimizing expenses while maintaining high R&D investment, which is crucial for sustaining competitive advantages [4][8]. Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 2.04 billion yuan, a year-on-year increase of 7.66%, while net profit decreased by 11.83% to 0.05 billion yuan [2]. - The company’s total market capitalization is approximately 11,084.74 million yuan [3]. Business Segments - Domestic commercial software sales are recovering, with a notable increase in revenue from 3D products, which grew over 35% year-on-year [2][4]. - The education sector is stabilizing despite budget constraints affecting digital procurement [4]. - The overseas business is progressing well, with a growing sales channel network, although revenue growth has slowed compared to the first half of the year [3][4]. R&D and Cost Management - The company has achieved significant cost control, with sales, management, and R&D expense ratios showing improvements [4]. - R&D investment reached 1.07 billion yuan in Q3 2024, reflecting a year-on-year growth of 9.04% [4]. Future Outlook - The company has set ambitious revenue targets for the upcoming years, with projected revenues of 9.88 billion yuan in 2024, 12.31 billion yuan in 2025, and 15.34 billion yuan in 2026, representing year-on-year growth rates of 19%, 25%, and 25% respectively [8][9]. - The earnings per share (EPS) are expected to increase from 0.66 yuan in 2024 to 1.54 yuan in 2026 [8][9].