Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by over 5% compared to the benchmark index in the next 3-6 months [68]. Core Insights - The global space design software market is projected to grow from 192 billion yuan in 2024 to 317 billion yuan by 2029, with a CAGR of 10.5%. The domestic market is expected to increase from 33 billion yuan to 66 billion yuan during the same period, corresponding to a CAGR of 14.9% [12][19]. - The Chinese space design software market is highly concentrated, with the top three companies holding a market share of 56.2%. Group Core Technology (群核科技) is the market leader with a share of 23.2% [22][23]. - Group Core Technology is a leading provider of cloud-native space design software in China, with applications across residential, commercial, and industrial projects. Its products, including Cool Home (酷家乐) and its overseas version Coohom, serve over 200 countries and regions, making it the largest space design platform globally [25][26]. Industry Overview Industry Scale - The demand for digital design solutions is driving a new growth cycle in the space design software market, with the global market expected to reach 901.4 billion yuan by 2029, growing from 419.9 billion yuan in 2024, reflecting a CAGR of 16.5%. The Chinese market is anticipated to grow from 75 billion yuan to 173 billion yuan, with a CAGR of 18.2% [8][12]. Industry Structure - The space design software market in China is characterized by high concentration, with core competitiveness relying on model capabilities and material library reserves. The market is evolving rapidly, and market share is expected to consolidate around leading companies [22][19]. Company Insights - Group Core Technology has established a business flywheel around space intelligence technology, integrating space editing tools, space data, and large models. The company is positioned to benefit from the ongoing digital transformation across various industries [25][26]. - The company's revenue is projected to reach 820 million yuan in 2025, reflecting an 8.6% year-on-year growth. The company is also expected to achieve a positive adjusted net profit of 60 million yuan in the same year [27][30].

Investment Rating - The report maintains a "Recommendation" rating for the light industry and textile sector, indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [68]. Core Insights - The global space design software market is projected to grow from 192 billion yuan in 2024 to 317 billion yuan by 2029, with a CAGR of 10.5%. The domestic market is expected to increase from 33 billion yuan to 66 billion yuan during the same period, corresponding to a CAGR of 14.9% [12][8]. - The Chinese space design software market is highly concentrated, with the top three companies holding a market share of 56.2%. Qunhe Technology is the market leader with a share of 23.2% [22][25]. - Qunhe Technology is recognized as a leading provider of cloud-native space design software in China, with applications across residential, commercial, and industrial projects. Its products, including CoolJia and its overseas version Coohom, serve over 200 countries and regions, making it the largest space design platform globally [25][26]. Industry Overview Industry Scale - The demand for digital design solutions is driving a new growth cycle in the space design software market, with the global market expected to reach 901.4 billion yuan by 2029, growing from 419.9 billion yuan in 2024, reflecting a CAGR of 16.5%. The Chinese market is anticipated to grow from 75 billion yuan to 173 billion yuan, with a CAGR of 18.2% [8][12]. Industry Structure - The space design software market in China is characterized by high concentration, with significant competitive advantages stemming from model capabilities and resource libraries. The market is evolving rapidly, with a tendency for market share to consolidate among leading firms [22][19]. Company Performance - Qunhe Technology's revenue is projected to reach 820 million yuan in 2025, reflecting an 8.6% year-on-year increase. The company is expected to achieve a positive adjusted net profit of 60 million yuan in 2025, benefiting from the expansion of its subscription model [26][30]. - The gross margin is steadily increasing, with projections of 76.8%, 80.9%, and 82.2% for the years 2023, 2024, and 2025, respectively, due to effective cost control and technological upgrades [30][31].

Core Viewpoint - Company is preparing for an IPO on the Hong Kong Stock Exchange, with J.P. Morgan and CCB International as joint sponsors, aiming to become the first listed company among the "Six Little Dragons of Hangzhou" [3] Group 1: Financial Performance - Company is projected to achieve revenue of 820 million yuan in 2025, with a gross margin of 82.2% and an adjusted net profit of 57.1 million yuan, marking a turnaround from previous losses [1] - The company's net losses according to accounting standards are expected to be 646 million yuan in 2023, 513 million yuan in 2024, and 428 million yuan in 2025, with an adjusted net profit of 57.1 million yuan [1] Group 2: Market Position and Growth - As of 2024, the company is a leading provider of spatial design software in China, holding a market share of 23.2%, with business expansion into international markets including South Korea, Southeast Asia, the United States, and India [3] - The Chinese spatial design software market is anticipated to grow from 3.3 billion yuan in 2024 to 6.6 billion yuan by 2029, with a compound annual growth rate (CAGR) of 18.9% for cloud software, significantly outpacing traditional on-premise software [3] Group 3: Company Background and Products - Company was co-founded by Huang Xiaohuang, Chen Hang, and Zhu Hao, who are university classmates with prior experience at renowned companies such as NVIDIA, Microsoft, Amazon, and the National Center for Supercomputing Applications [3] - The company offers a core cloud-native platform "CoolJiaLe," a localized solution for international markets "Coohom," and professional services providing 3D composite datasets "SpatialVerse," utilizing cloud-native architecture and AI-driven technology [3] Group 4: Investment and Shareholding - Company has received investments from multiple institutions including IDG Capital, GGV Capital, and Hillhouse Capital among others [4] - Pre-IPO shareholding includes Huang Xiaohuang with 15.46%, Chen Hang with 11.04%, Zhu Hao with 4.22%, and Wide Future Group Limited with 3.67% [4] - "CoolJiaLe" has established strategic partnerships with several well-known home furnishing companies, including Kuka Home and Sophia [4]