ZWSOFT(SH:688083) Huajin Securities·2024-02-03 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next six months compared to the CSI 300 index [20]. Core Insights - The company is experiencing rapid revenue growth driven by overseas business expansion, with projected revenues for 2023 expected to be between 8.11 billion and 8.35 billion yuan, representing a year-on-year growth of 35% to 39% [20]. - The net profit for 2023 is anticipated to be between 0.55 billion and 0.66 billion yuan, reflecting a significant increase of 772.77% to 947.33% compared to the previous year [20]. - The company has successfully implemented a localization strategy to expand its overseas market presence, establishing branches in countries like Thailand and hiring local talent in various regions [20]. - Domestic business growth has also rebounded, attributed to strategies targeting small and medium enterprises and strengthening marketing networks [20]. - The company has controlled sales expenses effectively, leading to a notable increase in net profit, despite a projected net loss under non-recurring items due to government subsidies and investment income [20]. Financial Data and Valuation - Revenue forecasts for 2023-2025 are adjusted to 8.20 billion, 11.09 billion, and 14.87 billion yuan respectively, with net profits projected at 0.58 billion, 1.65 billion, and 2.78 billion yuan [20]. - The report highlights a gross margin improvement potential due to enhanced product competitiveness and pricing power [20]. - Key financial metrics include: - Revenue (million yuan): 619 (2021), 601 (2022), 820 (2023E), 1,109 (2024E), 1,487 (2025E) [11]. - Net profit (million yuan): 182 (2021), 6 (2022), 58 (2023E), 165 (2024E), 278 (2025E) [11]. - Gross margin (%): 97.9 (2021), 98.4 (2022), 97.9 (2023E), 98.9 (2024E), 99.0 (2025E) [11]. - P/E ratio: 45.4 (2021), 1308.0 (2022), 141.4 (2023E), 50.1 (2024E), 29.7 (2025E) [11].