Foxit Software(SH:688095) Shenwan Hongyuan Securities·2025-10-30 11:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a significant performance exceeding expectations, with a notable turnaround in profitability due to the successful implementation of its dual transformation strategy [6] - The company achieved a revenue of 254 million yuan in Q3 2025, representing a year-on-year growth of 47.80%, and recorded a non-GAAP net profit of 484,400 yuan, marking its first profit since Q3 2022 [6] - The subscription and channel transformation strategies are gaining momentum, with subscription revenue reaching 152 million yuan in Q3 2025, up 68.10% year-on-year, and accounting for 65.10% of total revenue [6] - The company’s contract liabilities increased to 484 million yuan by the end of Q3 2025, indicating a positive trend in its subscription model [6] - Cost reduction efforts are evident, with sales, management, and R&D expense ratios decreasing significantly in Q3 2025 [6] - The company is expected to continue releasing profits in Q4 2025, aided by the integration of Tongban Information, which is projected to contribute additional revenue [6] - The forecasted net profits for 2025 to 2027 are 450 million, 1.19 billion, and 1.39 billion yuan respectively [6] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at 852 million yuan, with a year-on-year growth rate of 19.8% [5] - The projected net profit for 2025 is 450 million yuan, reflecting a significant recovery from previous losses [5] - The gross margin is expected to remain high at around 94.2% for 2025 [5] - The return on equity (ROE) is projected to improve to 1.8% in 2025, with further increases in subsequent years [5]