EMPYREAN(301269) 华创证券·2024-05-07 08:32Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][13]. Core Insights - The company experienced rapid business growth, with 2023 revenue reaching 1.01 billion yuan, a year-on-year increase of 26.61%, and a net profit of 201 million yuan, up 8.20% year-on-year. In Q1 2024, revenue was 213 million yuan, growing 33.59% year-on-year, while net profit decreased by 63.75% to 8 million yuan [1][2]. - The EDA software segment showed significant growth, with sales reaching 905 million yuan in 2023, a 33.56% increase year-on-year. However, the technical development services and hardware/software sales segments saw declines [2]. - The company is expanding its product offerings, including new EDA tools for storage and RF circuit design, and is benefiting from the growing domestic demand for integrated circuits [2]. - Increased R&D investment is aimed at enhancing core competencies in integrated circuit design and manufacturing, with R&D expenses rising to 67.77% of total expenses in 2023 [2]. - The company anticipates revenue growth of 30.7%, 29.2%, and 26.7% for 2024, 2025, and 2026, respectively, with adjusted net profit forecasts reflecting a decline in 2024 followed by recovery in subsequent years [2][3]. Financial Summary - In 2023, total revenue was 1,010 million yuan, with a projected increase to 1,321 million yuan in 2024, 1,707 million yuan in 2025, and 2,163 million yuan in 2026 [3]. - The net profit for 2023 was 201 million yuan, with forecasts of 175 million yuan in 2024, 275 million yuan in 2025, and 395 million yuan in 2026 [3]. - The gross margin for 2023 was 93.78%, with a slight increase expected in the following years, while the net margin is projected to decline in 2024 before improving [2][3].