Investment Rating - The report maintains a "Buy-A" rating for the company [4][7]. Core Insights - The company has shown strong revenue growth, with a 31.90% year-on-year increase in revenue for the first three quarters of 2025, reaching 830 million yuan. The net profit attributable to shareholders increased by 89.11% year-on-year to 330 million yuan [4][5]. - The company's gross margin improved to 96.26%, up 9.93 percentage points from the previous year, driven by a higher proportion of high-margin software product licensing revenue [5]. - The company is benefiting from the acceleration of domestic innovation demand in key sectors such as energy, finance, and transportation, leading to significant revenue growth [5][6]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a net profit margin of 39.33%, an increase of 12.19 percentage points year-on-year [5]. - The company’s earnings per share (EPS) for 2025 is projected to be 4.46 yuan, with expected EPS growth of 6.01 yuan in 2026 and 7.68 yuan in 2027 [7][9]. - The projected revenue for 2025 is 1.338 billion yuan, with a year-on-year growth rate of 28.1% [9][11]. Market Position and Strategy - The company is positioned as a leading domestic database provider, benefiting from government policies promoting self-reliance in technology and increased procurement of innovative products [6]. - The company has successfully completed compatibility testing for its products with a major domestic cloud platform, enhancing its service offerings across various transportation sectors [6].

Group 1 - The core viewpoint emphasizes the trend of domestic software and hardware localization driven by major power technology competition, with domestic computing power and software expected to resonate and jointly promote the construction of a localized ecosystem, achieving high-level technological self-reliance and strength [1] - The domestic computing power ecosystem is continuously improving, with companies like Cambricon adapting to the latest AI models and optimizing computing efficiency, significantly reducing costs in long-sequence scenarios [1] - Government policies are accelerating the development of trusted computing and innovation (信创), with preferential pricing for domestic products in government procurement, driving growth in the basic software market, which is expected to reach 25 billion yuan for operating systems and 51.2 billion yuan for databases by 2025 [1] Group 2 - In the industrial software sector, the market share of domestic CAD manufacturers has increased to 27%, and breakthroughs have been made in the localization of EDA tools for analog/digital circuit design, with the global EDA market expected to reach 20 billion USD by 2025 [1] - The software ETF (515230) tracks the software index (H30202), which selects listed company securities involved in software development and IT services to reflect the overall performance of the software industry, focusing on high-growth and innovative software enterprises [1]

Group 1: Software ETF Performance - The software ETF has a turnover rate of 4.16% and a transaction volume of 238 million yuan, with a total scale of 5.677 billion yuan, ranking first among comparable funds [3] - The software ETF experienced a net outflow of 54.0446 million yuan recently, but over the past 10 trading days, it has attracted a total of 417 million yuan [3] - As of October 24, 2025, the software ETF's net value has increased by 14.66% over the past three years, with the highest monthly return since inception being 39.35% and an average monthly return of 10.06% [3] Group 2: Key Holdings in Software Sector - As of September 30, 2025, the top ten weighted stocks in the CSI Software Service Index (930601) include iFlytek, Tonghuashun, Kingsoft Office, and others, accounting for a total of 62.41% of the index [3] Group 3: Industry Trends and Developments - The domestic operating system market is expected to reach 25 billion yuan by 2025, with significant growth in domestic IDE tools, such as SnapDevelop, which has attracted over 20,000 registered users [4] - The core industrial software market in China is projected to grow from 31.86 billion yuan in 2024 to 76.5 billion yuan by 2029, with a compound annual growth rate of approximately 19.1% [4] - The development of the domestic software industry is accelerating due to the national push for localization in the context of major technological competition [4]