EMPYREAN(SZ:301269) Soochow Securities·2024-05-05 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady revenue growth in EDA software, with a 33.56% year-on-year increase in sales revenue for EDA software in 2023, reaching 905 million yuan [2][3] - The company is actively investing in R&D, with a research expense ratio of 67.77% in 2023, which increased by 6.79 percentage points year-on-year [3] - The company is positioned as a leading domestic EDA provider, benefiting from the trend of EDA localization, with over 600 global customers and strong partnerships in the semiconductor industry [3] Financial Performance - In 2023, the company achieved total revenue of 1.01 billion yuan, a year-on-year increase of 26.61%, and a net profit attributable to the parent company of 200.72 million yuan, up 8.20% year-on-year [2][3] - The company's gross margin improved to 93.78% in 2023, an increase of 3.53 percentage points compared to the previous year, with a gross margin of 96.58% in Q1 2024 [2][3] - The forecast for net profit attributable to the parent company for 2024-2025 has been adjusted downwards to 221 million yuan and 271 million yuan, respectively, with a new forecast for 2026 set at 327 million yuan [3] Market Data - The closing price of the company's stock is 78.20 yuan, with a market capitalization of approximately 42.46 billion yuan [5] - The company has a price-to-earnings (P/E) ratio of 211.53 based on the latest diluted earnings per share [9] R&D and Product Development - The company is focusing on new product development in digital design, with ongoing projects in comprehensive EDA tools for digital design and specific EDA tools for certain types of chip designs [3] - The R&D expense ratio increased to 87.32% in Q1 2024, indicating a strong commitment to innovation and product development [3]