Foxit Software(SH:688095) CAITONG SECURITIES·2025-08-31 08:23Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has shown significant revenue growth driven by its "subscription + channel" dual transformation strategy, with a notable increase in subscription revenue and annual recurring revenue (ARR) [7] - The company is positioned as a leading domestic PDF provider, with expectations for continued growth in revenue and net profit over the next few years [7] - The introduction of AI-powered products is expected to enhance innovation and create additional growth opportunities in the B-end market [7] Financial Performance - For 1H2025, the company achieved revenue of 423 million yuan, a year-on-year increase of 25.20%, and a net profit of -22 million yuan, improving from a loss of 42 million yuan [7] - The company’s revenue for 2Q2025 was 220 million yuan, reflecting a year-on-year growth of 30.62% [7] - The subscription revenue reached 247 million yuan, a year-on-year increase of 59.82%, accounting for 59.15% of the original business [7] Revenue and Profit Forecast - Projected revenues for 2025, 2026, and 2027 are 1,097 million yuan, 1,383 million yuan, and 1,778 million yuan respectively, with corresponding net profits of 31 million yuan, 136 million yuan, and 287 million yuan [6][8] - The expected revenue growth rates are 54.2% for 2025, 26.1% for 2026, and 28.5% for 2027 [6][8] Key Financial Metrics - The company’s earnings per share (EPS) is projected to be 0.34 yuan in 2025, 1.49 yuan in 2026, and 3.14 yuan in 2027 [6][8] - The price-to-earnings (PE) ratio is expected to be 265.5 in 2025, 60.6 in 2026, and 28.8 in 2027 [6][8] - The return on equity (ROE) is projected to improve from 1.2% in 2025 to 10.1% in 2027 [6][8]