EMPYREAN(SZ:301269)2025-07-07 15:44Investment Rating - The investment rating for Empyrean Technology Co Ltd is Equal-weight [4] Core Viewpoints - The recent lifting of US export restrictions allows Synopsys and Cadence to restore access to their software and technology for customers in China, which is significant for the EDA market [1] - Empyrean Technology, the largest local vendor in China, held a 10% market share in 2024, but its stock has declined by 10% over the past month, contrasting with the CSI 300 index's 3% increase [2] - The report suggests that achieving full flow in digital EDA by Empyrean Technology by the end of 2025 is unlikely, with potential delays extending to 2027 due to M&A processes [2] - The current valuation of Empyrean Technology at 37x NTM P/S is significantly higher than its global peers, indicating that future market share gains are already priced in [2] Financial Summary - Price target for Empyrean Technology is set at Rmb115.00, representing a downside of 4% from the current price of Rmb119.30 [4] - Market capitalization is Rmb64,773 million with 543 million shares outstanding [4] - Revenue projections show growth from Rmb1,222 million in 2024 to Rmb2,666 million by 2027 [4] - EPS is expected to increase from Rmb0.20 in 2024 to Rmb1.65 in 2027 [4] - EBITDA is projected to improve from a loss of Rmb14 million in 2024 to a profit of Rmb914 million by 2027 [4]