Foxit Software(688095) Dongxing Securities·2025-05-05 03:23Investment Rating - The report maintains a "Strong Buy" rating for Foxit Software [2][13]. Core Views - Foxit Software achieved a turnaround in profitability for 2024, with a revenue of 7.11 billion yuan (up 16.44% year-on-year) and a net profit attributable to shareholders of 0.27 billion yuan (a significant increase of 129.64% year-on-year) [3][6]. - The company is transitioning from perpetual licensing to a subscription model, with subscription revenue reaching 3.51 billion yuan in 2024 (up 62% year-on-year) [4][5]. - The split of domestic and international operations is aimed at capturing opportunities in the domestic market, particularly in high-value sectors such as government and healthcare [5][6]. Revenue and Profitability - In 2024, Foxit Software's revenue and net profit were 7.11 billion yuan and 0.27 billion yuan, respectively, while the first quarter of 2025 saw revenue of 2.02 billion yuan [3][4]. - The company's gross margin for 2024 was 93.41%, indicating strong profitability despite a slight decline [6][14]. - The report forecasts net profits of 0.33 billion yuan, 0.64 billion yuan, and 1.31 billion yuan for 2025, 2026, and 2027, respectively [13][14]. Market Expansion - Foxit Software has expanded its market presence in the Asia-Pacific region, with revenue growth rates of 53% and 56% for 2024 and the first quarter of 2025, respectively [4][5]. - The company has successfully integrated its acquisition of Foxit Kunpeng, enhancing its capabilities in document technology [5][6]. Financial Projections - The report projects a revenue growth rate of 19.12% for 2025 and 22.70% for 2026, with a long-term growth trajectory expected to continue [14]. - The company's PE ratios are projected to be 180, 93, and 45 for 2025, 2026, and 2027, respectively, reflecting strong future earnings potential [13][14].