ZWSOFT(SH:688083) SINOLINK SECURITIES·2024-02-29 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price range of 271.50 to 300.00 RMB [6]. Core Insights - The company is seizing overseas opportunities, upgrading its sales network, and accelerating its merger and acquisition pace [1][30]. - In 2023, the company is expected to achieve an operating revenue of 820 million RMB, representing a year-over-year growth of 37.2%, significantly outpacing the Chinese software industry's growth rate of 13.4% [16][30]. - The net profit attributable to the parent company is projected to reach 62 million RMB in 2023, reflecting a remarkable year-over-year increase of 887.9% [16][30]. - The company has made strategic acquisitions, including a UK-based CFD company, enhancing its capabilities in various sectors such as power grids and digital cities [30]. Summary by Relevant Sections Business Performance - The company is expected to report a revenue of 820 million RMB for 2023, with a forecasted revenue of 1.033 billion RMB for 2024 and 1.291 billion RMB for 2025 [32]. - The net profit for 2023 is anticipated to be 62 million RMB, with projections of 110 million RMB for 2024 and 173 million RMB for 2025 [32]. Market Position - The company has maintained its leading position in the CAD market in China, with significant progress in securing key clients [30]. - The overseas revenue has shown a substantial increase of 71.3% year-over-year in the first three quarters of 2023 [30]. Valuation - The current stock price is at 80.48 RMB, which is below the historical valuation bottom, with a price-to-sales (P/S) ratio of 11.9 for 2023, projected to decrease to 8.7 in 2024 and 6.9 in 2025 [30][32].