EMPYREAN(SZ:301269) Western Securities·2025-10-31 09:09Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company reported a revenue of 805 million yuan for the first three quarters of 2025, representing a year-on-year growth of 8.2%, while the net profit attributable to the parent company was 9.06 million yuan, down 84.5% year-on-year [1][2] - The revenue growth has slowed down in Q3 2025, with a single-quarter revenue of 303 million yuan, up only 1.2% year-on-year, compared to the previous two quarters [1] - The company continues to enhance its product matrix, having launched seven core EDA tools in the first half of the year, covering nearly 80% of the main tools for digital circuit design [1][2] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 805 million yuan, with a net profit of 9.06 million yuan, and a non-recurring net profit of -22.16 million yuan, which is a reduction in losses by 11.41 million yuan year-on-year [1][2] - The company maintained high R&D investment, with R&D expenses reaching 557 million yuan, accounting for 69.2% of revenue [2] Strategic Developments - The company announced the termination of the acquisition of Chip and Semiconductor, which was intended to enhance its EDA solution capabilities from chip-level to system-level [2] - Despite the acquisition's termination, the company aims to continue its strategy of integrating self-developed, cooperatively developed, and acquired solutions to enhance its EDA toolchain [2] Future Projections - Revenue projections for 2025-2027 are estimated at 1.423 billion yuan, 1.777 billion yuan, and 2.214 billion yuan respectively, with net profits expected to be 144 million yuan, 250 million yuan, and 356 million yuan [3][4] - The company is expected to maintain its position as a leading EDA enterprise in China, benefiting from high industry barriers and its deep accumulation of technology, products, and customer resources [3]