Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company reported a revenue of 805 million yuan for the first three quarters of 2025, representing a year-on-year growth of 8.2%, while the net profit attributable to the parent company was 9.06 million yuan, down 84.5% year-on-year [1][2] - The revenue growth has slowed down in Q3 2025, with a single-quarter revenue of 303 million yuan, up only 1.2% year-on-year, compared to the previous two quarters [1] - The company continues to enhance its product matrix, having launched seven core EDA tools in the first half of the year, covering nearly 80% of the main tools for digital circuit design [1][2] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 805 million yuan, with a net profit of 9.06 million yuan, and a non-recurring net profit of -22.16 million yuan, which is a reduction in losses by 11.41 million yuan year-on-year [1][2] - The company maintained high R&D investment, with R&D expenses reaching 557 million yuan, accounting for 69.2% of revenue [2] Strategic Developments - The company announced the termination of the acquisition of Chip and Semiconductor, which was intended to enhance its EDA solution capabilities from chip-level to system-level [2] - Despite the acquisition's termination, the company aims to continue its strategy of integrating self-developed, cooperatively developed, and acquired solutions to enhance its EDA toolchain [2] Future Projections - Revenue projections for 2025-2027 are estimated at 1.423 billion yuan, 1.777 billion yuan, and 2.214 billion yuan respectively, with net profits expected to be 144 million yuan, 250 million yuan, and 356 million yuan [3][4] - The company is expected to maintain its position as a leading EDA enterprise in China, benefiting from high industry barriers and its deep accumulation of technology, products, and customer resources [3]

Core Viewpoint - The company reported its Q3 2025 performance, showing a slight year-on-year revenue increase but a significant decline in net profit, indicating challenges in profitability despite revenue growth [1]. Financial Performance - In Q3 2025, the company achieved revenue of 303 million yuan, representing a year-on-year increase of 1.2% and a quarter-on-quarter increase of 13.5% [1]. - The gross margin was 92.8%, up 0.3 percentage points year-on-year and 5.7 percentage points quarter-on-quarter [1]. - The net profit attributable to shareholders was 6 million yuan, down 71.0% year-on-year and down 190.1% quarter-on-quarter; the non-recurring net profit was -4 million yuan [1]. - For the first three quarters, the company reported revenue of 805 million yuan, a year-on-year increase of 8.23%, with a net profit of 9 million yuan and a significant increase in operating cash flow by 545.5% to 185 million yuan [1]. Development Trends - The digital circuit board segment is expanding its product matrix to strengthen customer development. The company has introduced four core EDA products for digital chip simulation and verification, covering nearly 80% of the main tools in digital circuit design [1]. - The company anticipates accelerated revenue growth in 2025 due to the enriched product matrix in the digital field and the gradual confirmation of deferred orders from major clients, alongside an accelerated overseas expansion [1]. M&A Opportunities - The company is actively seeking merger and acquisition opportunities to enhance its EDA product matrix through a combination of independent research, collaborative development, and M&A [2]. - The focus is on providing complete end-to-end solutions for clients, with expectations of more market opportunities arising from M&A activities [2]. Profit Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been revised down by 8.4% and 9.1% to 1.43 billion yuan and 1.95 billion yuan, respectively, due to the time required to refine the product matrix [3]. - Net profit forecasts for 2025 and 2026 have been reduced by 20.8% and 8.9% to 180 million yuan and 300 million yuan, respectively, reflecting ongoing investments in research and development [3]. - Despite the adjustments, the company maintains an outperform rating and a target price of 125 yuan, indicating a potential upside of 2.5% from the current stock price [3].

Core Viewpoint - The company reported a revenue growth in 2024 but faced a significant decline in net profit, while the first quarter of 2025 showed positive trends in both revenue and net profit [1][2]. Financial Performance - In 2024, the company achieved a revenue of 1.22 billion, representing a year-on-year increase of 20.98%, while the net profit attributable to shareholders was 109 million, a decrease of 45.46% [1]. - For the first quarter of 2025, the company reported a revenue of 234 million, an increase of 9.77% year-on-year, and a net profit of 10 million, which is a year-on-year growth of 26.72% [2]. Industry Position and Growth - The company maintained a strong growth in software sales and technical services, solidifying its leading position in the domestic EDA (Electronic Design Automation) market. In 2024, EDA software sales reached 1.09 billion, up 20.71%, and technical service revenue was 115 million, up 40.01% [3]. - As one of the earliest companies engaged in EDA research and development in China, the company has become the largest and most comprehensive EDA enterprise domestically, holding the top market share among local EDA companies in 2024 [3]. Research and Development - The company emphasizes continuous R&D innovation, with R&D expenses amounting to 868.12 million in 2024, accounting for 71.02% of its revenue. It has achieved full-process tool coverage in various circuit design fields and is enhancing its coverage in other EDA areas [3]. - On March 31, 2025, the company announced a plan to acquire 100% of Chip and Semiconductor, aiming to build a comprehensive EDA solution from chip to system level, thereby enhancing the domestic EDA ecosystem [3]. Product and Customer Base - The company's EDA tool software and services cover multiple fields, including various circuit designs and wafer manufacturing. It has nearly 700 global customers, establishing a strong reputation in the industry [4]. - In 2024, the company achieved over 50% coverage in domestic process nodes for PDK (Process Design Kit), with plans for full coverage in the next two to three years [4]. Revenue Forecast - The company forecasts total revenues of 1.65 billion, 2.12 billion, and 2.68 billion for 2025, 2026, and 2027, respectively, with growth rates of 35.28%, 28.47%, and 26.04%. The net profit attributable to shareholders is expected to be 220 million, 337 million, and 470 million, reflecting year-on-year growth of 100.84%, 53.37%, and 39.51% [4].