Foxit Software(SH:688095) Bank of China Securities·2025-05-11 11:03Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 71.20 and a sector rating of "Outperform" [1] Core Views - The company is expected to turn profitable in 2024, driven by the success of its "subscription business" and "channel-first" dual transformation strategy [1][5] - The company reported a revenue of RMB 711 million in 2024, representing a year-on-year growth of 16.44%, and a net profit attributable to shareholders of RMB 27 million, marking a turnaround from losses [3][5] Financial Performance Summary - For 2024, the company achieved a revenue of RMB 711 million, with a growth rate of 16.4% compared to 2023 [7] - The net profit for 2024 was RMB 27 million, a significant recovery from a loss of RMB 91 million in 2023, indicating a growth rate of 5,114.8% [7] - The earnings per share (EPS) for 2024 is projected at RMB 0.29, with further increases expected in subsequent years [5][7] Subscription Business Growth - The company launched a new subscription plan in 2024, leading to an Annual Recurring Revenue (ARR) of RMB 411 million, which is a 64.42% increase year-on-year [8] - Subscription revenue accounted for 49.31% of total revenue in 2024, demonstrating the effectiveness of the subscription-first strategy [8] Channel Development - The company has made significant progress in channel development, particularly in the Asia-Pacific and Middle East regions, with revenue growth of 53.42% and 24.02% respectively [8] - Channel revenue for 2024 reached RMB 292 million, representing 41.05% of total revenue [8] Future Projections - Revenue projections for 2025, 2026, and 2027 are RMB 807 million, RMB 904 million, and RMB 1,008 million respectively, with corresponding net profits of RMB 45 million, RMB 65 million, and RMB 93 million [5][7] - The company is expected to maintain a strong growth trajectory with a focus on subscription and channel strategies [5][8]