ZWSOFT(SH:688083) GF SECURITIES·2025-01-21 02:59Investment Rating - The report assigns a "Buy" rating to the company [3]. Core Views - The competitive landscape is improving, and the company's position is becoming more solidified in the 3D CAD market, with a notable increase in the domestic market share of local manufacturers [12][18]. - The company is expected to benefit from the high barriers to entry in the geometric modeling engine and constraint solving engine, which are critical components of 3D CAD software [40]. - The company's revenue is projected to grow significantly, with estimates of 918 million yuan in 2024, 1.092 billion yuan in 2025, and 1.343 billion yuan in 2026, reflecting a compound annual growth rate of around 20% [2][8]. Summary by Sections 1. Competitive Landscape - The domestic CAD market is seeing an increase in the market share of local manufacturers, with a rise from approximately 20% to 25% in 2023, as major foreign players like Dassault Systemes and Siemens experience declines in their market shares [12][18]. 2. Technology-Driven Growth - The report highlights the high technical barriers in the 3D CAD field, particularly in geometric modeling and constraint solving engines, which have historically been dominated by foreign companies [40][46]. - The company has developed its own Overdrive kernel, which supports various geometric and modeling algorithms, enhancing its competitive edge [49][52]. 3. Revenue and Valuation Analysis - The company is projected to achieve significant revenue growth, with estimates of 601 million yuan in 2022, 828 million yuan in 2023, and continuing to grow to 1.343 billion yuan by 2026 [2]. - The report suggests a reasonable value per share of 108.07 yuan, based on a 12X price-to-sales (P/S) valuation for 2025 [8][12]. 4. Market Positioning - The company is positioned to capitalize on the trend of domestic software localization and the increasing demand for high-quality CAD solutions in the manufacturing sector [12][18]. - The report notes that the company’s products are gaining traction in high-end manufacturing, which is expected to further enhance its market position and valuation [8][12].