ZWSOFT(SH:688083) GF SECURITIES·2024-04-26 06:32Investment Rating - The investment rating for the company is "Buy" with a current price of 83.65 CNY and a target value of 141.84 CNY [4]. Core Insights - The company has returned to a growth trajectory with a revenue increase of 38% year-on-year in 2023, and a notable performance in both domestic and overseas markets, with domestic commercial market revenue up 44% and overseas market revenue up 71% [11][22]. - The company is focusing on expanding its channel distribution network, which has shown initial success, with distribution revenue growing by 26% in 2023 and 35% in Q1 2024 [3][23]. - The education market has shown weaker performance, impacting overall growth, but there is potential for recovery as purchasing budgets and promotional activities normalize [25][45]. Financial Performance Summary - In 2023, the company reported total revenue of 828 million CNY, a 37.7% increase from the previous year, and a net profit of 61.41 million CNY, up 922.8% year-on-year [8][36]. - Revenue projections for 2024 to 2026 are estimated at 1.089 billion CNY, 1.460 billion CNY, and 1.904 billion CNY, with year-on-year growth rates of 31.6%, 34.1%, and 30.4% respectively [26]. - The company’s EBITDA is expected to grow significantly, reaching 212 million CNY in 2024 and 397 million CNY by 2026 [26]. Market and Product Analysis - The company’s 2D CAD software revenue increased by 16.53% to 472 million CNY in 2023, while 3D CAD software revenue grew by 16.28% to 188 million CNY [17][36]. - The education market's revenue growth was limited to approximately 5% in 2023, which has been a drag on overall revenue growth [11][25]. - The company has made strategic acquisitions, including a 65% stake in Beijing Bochao, which is expected to enhance its capabilities in the electrical design software sector [44].