ZWSOFT(SH:688083) Huachuang Securities·2024-05-07 23:32Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation that the industry index will outperform the benchmark index by more than 5% in the next 3-6 months [12]. Core Insights - The company reported a revenue of 828 million yuan for 2023, representing a year-on-year growth of 37.71%, and a net profit attributable to shareholders of 61 million yuan, which is a significant increase of 922.84% year-on-year [1]. - In Q1 2024, the company achieved a revenue of 120 million yuan, showing a modest growth of 3.84% year-on-year, but reported a net loss of 26 million yuan, a decline of 44.94% compared to the previous year [1]. - The company's main revenue source is general software, which accounted for approximately 84.92% of total revenue in 2023, generating 699 million yuan, a year-on-year increase of 22.98% [12]. - The company has successfully expanded its overseas operations, with international revenue reaching 157 million yuan in 2023, a growth of 71.14% year-on-year, attributed to its localization strategy and enhanced sales support capabilities [12]. - The report highlights a strategic shift towards a dual distribution model, combining direct sales and distribution, to broaden the adoption of domestic CAx solutions [12]. Financial Summary - The projected revenues for 2024, 2025, and 2026 are 1,018 million yuan, 1,242 million yuan, and 1,497 million yuan, respectively, with corresponding growth rates of 23.0%, 22.0%, and 20.5% [22]. - The net profit attributable to shareholders is expected to be 85 million yuan, 112 million yuan, and 142 million yuan for the years 2024, 2025, and 2026, with growth rates of 37.9%, 32.0%, and 26.6% respectively [22]. - The company’s earnings per share (EPS) are projected to be 0.70 yuan, 0.92 yuan, and 1.17 yuan for the years 2024, 2025, and 2026 [22].