Summary of the Conference Call on Huada Jiutian Industry Overview - The company is a leading player in the domestic EDA (Electronic Design Automation) market, with a market share of 7% in 2022, maintaining its position as the top local provider [1] - The domestic semiconductor market is expected to grow at a rate of 20% over the next three years, with the EDA market projected to expand from 14 billion to 35.4 billion from 2024 to 2027, resulting in a CAGR of 36% [1][2] Key Points 1. **Market Growth and Projections** - The EDA market is anticipated to grow significantly due to the increase in the semiconductor market and the rise of EDA software usage from 1% to 1.3% of the semiconductor market [1] - The expected CAGR for the EDA industry from 2024 to 2027 is 36% [1] 2. **Company Growth Drivers** - The company is leveraging both self-research and acquisitions to enhance its process coverage, aiming for a comprehensive suite of EDA tools [1] - The digital circuit coverage is expected to exceed 90% by 2026, with other categories achieving full process coverage [2] - AI-driven advancements are helping the company close the gap with global leaders, while also expanding its market share [2] 3. **Global Market Context** - The leading global EDA companies include Cadence Design Systems (valued at approximately 500 billion), Synopsys (around 480 billion), and Siemens EDA (about 250 billion), collectively holding a 76% market share and a total market capitalization of 1.2433 trillion [2] - Huada Jiutian is projected to capture about 22% of the global market share in the long term, indicating significant growth potential from its current market capitalization of 60.5 billion [2] Financial Forecast - Revenue is expected to grow at a compound annual growth rate (CAGR) of 43% from 2024 to 2026 [2] - The projected net profit for the parent company is forecasted to be 129 million, 230 million, and 392 million for the years 2024, 2025, and 2026, respectively, with year-on-year changes of -35.64%, +77.68%, and +70.83%, leading to a 3-year CAGR of 74% [2] - The price-to-sales (PS) ratio is lower than comparable domestic companies, leading to a "buy" rating for the stock [2]