Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company achieved a turnaround in net profit, with a significant reduction in losses in the design EDA segment, indicating a strong growth trajectory [6][4] - The company is actively promoting the integration and collaboration of the EDA industry, aiming to establish a dual-engine model of "EDA + IP" to support the development of China's integrated circuit industry [6][4] Financial Summary - Total shares outstanding: 435.18 million [2] - Market price: 36.80 CNY [2] - Market capitalization: 16,014.54 million CNY [2] - Revenue for H1 2025 was 218 million CNY, a year-on-year increase of 11.43% [6] - Net profit for H1 2025 was 46 million CNY, marking a return to profitability [6] - The company forecasts revenues of 502 million CNY, 601 million CNY, and 706 million CNY for 2025, 2026, and 2027 respectively, with corresponding net profits of 3 million CNY, 25 million CNY, and 57 million CNY [4][6] - The company’s domestic market revenue reached 166 million CNY in H1 2025, growing 24.43% year-on-year, accounting for 75.93% of total revenue [6] Business Development - The company is pursuing strategic acquisitions to enhance its market position, including plans to acquire 100% of Rui Cheng Micro and 45.64% of Na Neng Micro [6] - A strategic cooperation framework agreement has been signed with Shanghai Guotou and Shanghai Xinhe Chuang to develop a comprehensive EDA platform [6]