Foxit Software(688095) 华泰证券·2025-04-29 11:11Investment Rating - The investment rating for the company is "Buy" with a target price of 92.92 RMB [8][9] Core Views - The company achieved a revenue of 711 million RMB in 2024, representing a year-on-year increase of 16.44%, and a net profit attributable to shareholders of 26.96 million RMB, which is a significant increase of 129.64% year-on-year [1][5] - The dual transformation strategy and AI upgrades are expected to accelerate overall revenue growth in 2025 [1][2] - Subscription revenue reached 351 million RMB in 2024, up 62.33% year-on-year, accounting for 49% of total revenue [2] - The company has seen a strong performance in its channel strategy, with channel revenue increasing by 40.49% year-on-year to 292 million RMB, contributing 41% to total revenue [2] - The company is focusing on AI product upgrades, which have enhanced product competitiveness and led to a decrease in R&D expense ratio [3] Summary by Sections Financial Performance - In Q1 2025, the company reported revenue of 202 million RMB, a year-on-year increase of 19.78%, with a net loss of 5.83 million RMB, showing improvement compared to the previous year [4] - The revenue forecast for 2025-2027 is adjusted to 865 million, 1,054 million, and 1,285 million RMB respectively, with corresponding net profits of 31.50 million, 71.93 million, and 126.16 million RMB [5][7] Market Position and Strategy - The company’s subscription business has a strong annual recurring revenue (ARR) of 411 million RMB, with a renewal rate of approximately 90% [2] - The company is benefiting from the operational separation of domestic and international businesses, which is expected to accelerate global business growth, particularly in the Asia-Pacific market [3] Valuation Metrics - The company is valued at a price-to-sales (PS) ratio of 9.8x for 2025, with a target price of 92.92 RMB based on comparable company analysis [5][13]