EMPYREAN(SZ:301269)2024-03-12 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Insights - The company specializes in the development, sales, and related services of EDA tools for integrated circuit design, manufacturing, and packaging, with a strong focus on launching comprehensive tools for specific downstream applications [3][4] - The company holds the largest market share in the domestic EDA market, with over 50% market share as of 2020, and reported a revenue of 798 million yuan in 2022, reflecting a year-on-year growth of 37.76% [4][7] - The company has introduced a stock incentive plan aimed at achieving high revenue growth targets, with specific revenue growth rate triggers set for 2024-2026 [4][6] Financial Summary - The company reported revenues of 798 million yuan in 2022, with projections of 1,030 million yuan in 2023, 1,355 million yuan in 2024, and 1,811 million yuan in 2025, indicating a compound annual growth rate of approximately 33.6% from 2023 to 2025 [5][10] - The net profit for 2022 was 186 million yuan, with projections of 206 million yuan in 2023, a decrease to 102 million yuan in 2024, and a recovery to 314 million yuan in 2025 [5][10] - The company maintains a stable gross margin, with a gross margin of 90.3% in 2022, projected to be 88.1% in 2023, and gradually decreasing to 87.1% by 2025 [5][10] Market Position and Competitive Advantage - The company has established a strong customer base with approximately 600 domestic and international clients, and has been involved in several national-level major scientific research projects [4][7] - The company is recognized for its leading products in various EDA tool categories, including the world's leading solutions for analog circuit design and the only domestic solution for RF circuit design [4][6] - The company is well-positioned in the market with strong technical capabilities, rich customer resources, and a comprehensive industry ecosystem [7][9]