EMPYREAN(SZ:301269)2024-05-07 01:32Investment Rating - The report maintains an "Outperform" rating for the company [6]. Core Insights - The company reported a revenue of 1.01 billion yuan for 2023, representing a year-on-year growth of 26.6%, and a net profit attributable to shareholders of 201 million yuan, up 8.2% year-on-year [6][8]. - In Q1 2024, the company achieved a revenue of 213 million yuan, a significant increase of 33.6% year-on-year, although the net profit dropped to 7.67 million yuan, a decline of 63.8% year-on-year due to stock incentive expenses [6][8]. - The EDA software sales revenue reached 905 million yuan in 2023, growing by 33.6%, with strong performance in digital circuit design and wafer manufacturing EDA tools [6][8]. Summary by Sections Market Data - Closing price: 80.61 yuan - Market capitalization: 21,146 million yuan - Price-to-book ratio: 9.0 [3]. Financial Data - As of March 31, 2024, the company's net asset per share was 8.92 yuan, and the debt-to-asset ratio was 10.96% [4]. Revenue and Profit Forecast - Projected total revenue for 2024 is 1.37 billion yuan, with a year-on-year growth rate of 35.9% [8]. - Expected net profit for 2024 is 120 million yuan, reflecting a decrease of 40.2% year-on-year [8]. - The company anticipates continued growth in revenue and profit through 2026, with net profit projected to reach 490 million yuan by then [8]. Investment Analysis - The company is expected to incur stock incentive expenses of 203 million yuan, 145 million yuan, and 68 million yuan in 2024, 2025, and 2026 respectively, which will impact short-term profit but is seen as a long-term value driver [6]. - The estimated target market value is approximately 50.5 billion yuan based on the FCFF model [6].