Foxit Software(SH:688095)2024-10-31 01:16Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Insights - The company has successfully accelerated its subscription transformation, with subscription revenue for the first three quarters reaching 245 million yuan, a year-on-year increase of 65.8%, and the subscription ratio at 48.1% [4]. - The company reported a total revenue of 509 million yuan for the first three quarters of 2024, representing a year-on-year growth of 15.1%, and a net profit attributable to the parent company of 39 million yuan, marking a turnaround from losses [4][5]. - The company has achieved a high subscription renewal rate of 93%, indicating strong customer retention [4]. - The global revenue distribution shows that North America accounts for 55%, Europe 25%, Asia-Pacific 7%, and mainland China 9%, with rapid growth in Europe and Asia-Pacific [4]. - The integration of AI capabilities with PDF functionalities has led to the launch of a paid subscription service for the AI Assistant at $49.99 per year, which is expected to contribute positively to the company's performance [4]. Financial Summary - The company forecasts revenues of 705 million yuan, 852 million yuan, and 1,064 million yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 15.4%, 20.9%, and 25.0% [5]. - The projected net profit for 2024 is -23 million yuan, with a turnaround to 45 million yuan in 2025 and 119 million yuan in 2026 [5]. - The gross margin is expected to remain stable around 94%, with a projected return on equity (ROE) improving from -0.9% in 2024 to 4.6% in 2026 [5].