EMPYREAN(SZ:301269) CMS·2025-05-05 15:10Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company is experiencing accelerated domestic EDA core segment localization and has acquired Chip and Semiconductor to enhance its business layout in TMT and small-cap/electronic sectors [1] - The company is expected to benefit from the domestic EDA substitution trend, having established a comprehensive layout across seven major fields and four complete processes [1] - The acquisition of Chip and Semiconductor is anticipated to complement the company's product lines and provide a more comprehensive chip-to-system level product offering [1] Financial Performance Summary - For Q1 2025, the company reported revenue of 234 million yuan, a year-on-year increase of 9.8% but a quarter-on-quarter decrease of 51.1%, with a net profit attributable to shareholders of 9.71 million yuan [1] - The 2024 revenue is projected to be 1.222 billion yuan, representing a year-on-year growth of 20.98%, with a net profit of 109 million yuan, down 45.46% year-on-year due to stock payment expenses [1] - The company expects revenues of 1.6 billion yuan, 1.93 billion yuan, and 2.32 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 166 million yuan, 295 million yuan, and 409 million yuan [5][12] Business Development Summary - The company has established a full-process EDA tool system for analog, storage, RF, and flat panel display circuit design, with plans to quickly complete the EDA full process for digital circuits, wafer manufacturing, and advanced packaging [1] - The company was included in the U.S. Entity List, which is expected to accelerate the localization process of EDA tools [1] - The company is now under the control of China Electronics Group, which is expected to support its development and integration into the group's financial statements [1]