Shanghai Suochen Information Technology (688507)2024-10-31 01:15Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Insights - The company reported a revenue of 82.85 million yuan for the first three quarters of 2024, representing a year-on-year increase of 58%. However, the net profit attributable to the parent company was -70.65 million yuan [5]. - The revenue for Q3 2024 was 31.10 million yuan, showing a slight year-on-year increase of 1%, with the net profit attributable to the parent company at -4.22 million yuan [5]. - The company has a strong cash position with approximately 2 billion yuan at the end of the reporting period, positioning it well for potential mergers and acquisitions in the CAE industry [5][6]. - The acquisition of the full source code of the electromagnetic simulation software WIPL-D is expected to enhance the company's capabilities in the electromagnetic field, addressing previous shortcomings [6]. - The company is focusing on breakthroughs in the civilian market, particularly in the automotive sector, while pursuing both domestic and overseas acquisitions to enhance its product line [6]. Financial Summary - The total revenue for 2023 is projected at 320 million yuan, with expected growth rates of 34.4%, 40.4%, and 40.7% for 2024, 2025, and 2026 respectively [8]. - The net profit attributable to the parent company is expected to be 65 million yuan in 2024, with a projected increase to 120 million yuan by 2026 [8]. - The report indicates a decrease in the growth assumptions for the engineering simulation software and simulation software development businesses, with revised revenue projections of 430 million yuan for 2024, down from previous estimates [7][8].