ZWSOFT(SH:688083) KAIYUAN SECURITIES·2024-04-27 06:30Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company is a leader in the domestic CAX field and is expected to benefit from opportunities in domestic substitution [18] - The company is actively pursuing an overseas localization strategy, with a nearly 50% growth in overseas market revenue in Q1 2024 [3] - The company has seen significant growth in its 3D product orders, with a more than 40% increase in order amounts from ZW3D in Q1 2024 [3] Financial Performance Summary - In 2023, the company achieved a revenue of 828 million yuan, a year-on-year increase of 37.71%, and a net profit of 61 million yuan, a year-on-year increase of 922.84% [32] - In Q1 2024, the company reported a revenue of 120 million yuan, a year-on-year increase of 3.84%, but a net profit of -26 million yuan, a year-on-year decrease of 44.94% [32] - The projected net profits for 2024-2026 are 80 million, 102 million, and 130 million yuan respectively, with EPS of 0.66, 0.84, and 1.07 yuan per share [18] Revenue and Profitability Metrics - The company's revenue is expected to grow from 989 million yuan in 2024 to 1.454 billion yuan in 2026, with a year-on-year growth rate of 19.5% in 2024 and 22.5% in 2026 [19] - The gross margin is projected to remain stable, with estimates of 93.9% in 2024 and 94.9% in 2026 [19] - The net profit margin is expected to improve from 8.1% in 2024 to 9.0% in 2026 [19] Market Position and Strategy - The company is focusing on strengthening its direct sales advantages while expanding its channel distribution network across the country [3] - The revenue growth of the distribution team exceeded that of the direct sales team in 2023, with a growth rate of over 35% in Q1 2024 [3] - The company is enhancing its brand marketing efforts overseas, which is contributing to its revenue growth [3]