EMPYREAN(SZ:301269) Ping An Securities·2025-05-05 12:53Investment Rating - The investment rating for the company is "Recommended" [1] Core Views - The company reported strong profit performance in Q1 2025, with a revenue of 234 million yuan, representing a year-on-year growth of 9.77%, and a net profit of 10 million yuan, up 26.72% year-on-year [4][7] - The company maintains its leading position in the domestic EDA market, with a market share that remains the highest among local EDA firms [7][8] - The company has a robust R&D investment strategy, with R&D expenses amounting to 868 million yuan in 2024, accounting for 71.02% of its revenue [7][8] - The company has established strong relationships with nearly 700 domestic and international clients, enhancing its market expansion and brand recognition [8] Financial Performance Summary - In 2024, the company achieved a revenue of 1.222 billion yuan, a year-on-year increase of 20.98%, while the net profit was 109 million yuan, a decrease of 45.46% [4][7] - For Q1 2025, the company reported a significant increase in operating cash flow, reaching 240 million yuan, a year-on-year growth of 281.38% [7] - The company’s gross margin is projected to remain stable at 93.3% from 2024 to 2027, while the net profit margin is expected to improve from 9.0% in 2024 to 15.5% in 2027 [10] Earnings Forecast - The earnings per share (EPS) for 2025 is estimated at 0.41 yuan, with projections of 0.57 yuan for 2026 and 0.81 yuan for 2027 [8][10] - The company is expected to see a significant recovery in net profit, with forecasts of 222 million yuan in 2025, 309 million yuan in 2026, and 439 million yuan in 2027, reflecting growth rates of 103.1% and 39.2% respectively [10] Market Position and Strategy - The company has been recognized as a national-level "Little Giant" enterprise, indicating its strong capabilities in the EDA industry [8] - The company is focusing on enhancing its technological capabilities in key areas such as storage and automotive electronic design tools, which are approaching international advanced levels [8]