Investment Rating - The investment rating for the company has been upgraded to "Buy" [9][36]. Core Views - The company is planning to acquire 100% equity of Chip and Semiconductor, which will enhance its capabilities in the EDA (Electronic Design Automation) sector [6][7]. - The acquisition is expected to solidify the company's position as a leader in the domestic EDA market, especially in the context of increasing demand for domestic software and hardware alternatives [7]. - The EDA industry is experiencing high growth, with the global EDA market projected to reach $3.227 billion in Q3 2024, reflecting an 8.0% year-on-year growth [7]. - The company aims to cover the entire EDA process and field to meet the needs of domestic substitution, leveraging the acquisition to fill product gaps and enhance efficiency [7]. - The financial performance of the company is expected to improve significantly post-acquisition, with projected revenues of 1.224 billion yuan in 2024 and 1.791 billion yuan in 2025, representing growth rates of 21.19% and 46.24% respectively [8]. Summary by Sections Market Data - The closing price of the company is 116.30 yuan, with a market capitalization of 30.508 billion yuan [2]. - The company has a price-to-book ratio of 12.87 and a net asset return rate of 1.19% [2]. Financial Projections - Revenue is projected to grow from 1.010 billion yuan in 2023 to 1.791 billion yuan in 2025, with a net profit forecasted to increase from 201 million yuan to 284 million yuan in the same period [8]. - The earnings per share (EPS) are expected to rise from 0.37 yuan in 2023 to 0.52 yuan in 2025 [8]. Industry Context - The EDA industry is witnessing consolidation, with major players like the company and others actively pursuing acquisitions to enhance their market positions [9]. - The acquisition of Chip and Semiconductor is seen as a strategic move to accelerate growth and improve product offerings in a competitive landscape [7][9].

将投中网设为"星标⭐"，第一时间收获最新推送 同时， 一家中国EDA巨头也在升起。 作者丨 陶辉东 来源丨 投中网 在大家期待A股IPO再次加速之际，并购热也仍在持续发力。近日，又一家IPO辅导中的公司，选择放弃独立IPO转向并购。 3月30日晚，华大九天披露了交易预案，拟通过发行股份及支付现金的方式收购芯和半导体100%的股份。 这起并购交易的双方都来头不小。华大九天是大名鼎鼎的"国产EDA一哥"，目前在创业板上市值达600亿元。芯和半导体也是一家国内的EDA明星公 司，创立以来已融资7轮。如果交易成功，这将是国内EDA行业有史以来最大的一笔并购交易。 今年2月份，芯和半导体刚刚在上海证监局完成了IPO辅导备案登记，仅仅一个月后就转而走上了"并购"这条快车道。 在半导体业界，这起并购也备受关注。众所周知，EDA被称为"芯片之母"，与光刻机一样，都是半导体产业链中技术壁垒最高、被海外巨头垄断最为严 重的环节。目前，新思科技（Synopsys）、楷登电子（Cadence）和西门子三大巨头全流程、大比例地垄断全球EDA市场，地位难以撼动。虽然近年 来中国涌现出了百余家EDA企业，国产替代取得了一定进展，但绝大部分 ...

Summary of Huada Jiutian Conference Call Company and Industry Overview - **Company**: Huada Jiutian - **Industry**: Electronic Design Automation (EDA) Key Points and Arguments - **Acquisition of Newhe Semiconductor**: Huada Jiutian acquired 100% of Newhe Semiconductor through a combination of cash and stock issuance, which is expected to enhance its competitive edge in the EDA market, particularly in system-level simulation for chips [3][4] - **Market Positioning**: The acquisition marks the beginning of a large-scale merger and acquisition cycle for Huada Jiutian, aimed at addressing its development gaps as the only EDA platform in China [3][4] - **Technological Trends**: The integrated circuit design is entering a post-Moore's Law era, where advanced packaging is crucial for increasing chip integration. Multi-physical field simulation technology is becoming essential in EDA tools to address challenges posed by chip integration [5][6] - **Challenges in SOC Design**: Huada Jiutian faces significant challenges in SOC design and chip manufacturing, including complex function decomposition, inter-chip connectivity, and advanced packaging issues [9] - **Market Growth Potential**: The domestic EDA market is projected to reach 16 billion RMB by 2030, with Huada Jiutian's localization rate expected to increase to 50%-70%, indicating a potential market capitalization of over 100 billion RMB [3][15] - **IP Business Development**: Huada Jiutian has the potential to develop its IP business, especially after establishing a leading position in the digital EDA market, which could become a new growth driver [3][16] - **Valuation Logic**: The high valuation of Huada Jiutian is supported by its strong market position and growth potential, with a projected PS ratio of 15-20 times based on future market conditions [11][14] - **Future M&A Plans**: The acquisition of Newhe Semiconductor signals the start of a broader M&A strategy, aimed at enhancing key capabilities and achieving a market valuation of 100 billion RMB [17] Additional Important Insights - **Collaboration with International Giants**: Huada Jiutian has partnered with international companies like Xindasi to launch a comprehensive 3D advanced packaging design analysis EDA platform, reinforcing its industry leadership [7][8] - **Technological Achievements**: The company has received national awards for its technological advancements, further solidifying its position in the domestic EDA industry [8] - **Impact of US-China Relations**: The current geopolitical climate is influencing market liquidity and sentiment, which in turn affects Huada Jiutian's revenue growth [12] This summary encapsulates the critical insights from the conference call, highlighting Huada Jiutian's strategic moves, market positioning, and future growth potential within the EDA industry.

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]

Core Viewpoint - The company, Shanghai Gai Lun Electronics Co., Ltd., is planning to acquire a controlling stake in Chengdu Ruicheng Chip Micro Technology Co., Ltd. through a combination of share issuance and cash payment, while also raising supporting funds for this transaction [1]. Group 1: Transaction Details - The transaction is expected to constitute a major asset restructuring as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies" and is anticipated to involve related party transactions [1]. - The company’s stock will be suspended from trading starting March 28, 2025, for a period not exceeding five trading days to ensure fair information disclosure and protect investor interests [1]. Group 2: Company Background - Founded in 2010, the company has evolved its guiding principles from "Yield-Driven Design" (DFY) to "Design-Technology Co-Optimization" (DTCO) over the years, focusing on enhancing the competitiveness of integrated circuit design and manufacturing [3][4]. - As the first EDA listed company in China, the company emphasizes EDA software licensing as a primary business direction, leveraging international leading technologies and continuous external cooperation to drive application-oriented EDA solutions [4]. Group 3: Strategic Development - The company’s overall strategy involves optimizing technology and product layouts around process and design collaboration, targeting advanced process nodes in the integrated circuit industry [4][5]. - The company aims to establish comprehensive EDA solutions for manufacturing processes and enhance its offerings in analog circuit design, digital circuit design, and data-driven EDA solutions [5]. Group 4: Acquisition Target Overview - Chengdu Ruicheng Chip Micro Technology Co., Ltd., established in 2011, specializes in integrated circuit IP product design and customization services, holding over 150 domestic and international patents [5]. - The target company has established partnerships with over 30 global wafer foundries and has promoted more than 1,000 IPs, serving hundreds of integrated circuit design companies across various applications including automotive electronics and artificial intelligence [5].

Core Viewpoint - The article discusses the strategic acquisition of Chip and Semiconductor Technology (Shanghai) Co., Ltd. by Huada Jiutian, a leading EDA company in China, aiming to enhance its product offerings and market reach in the semiconductor industry [2][3]. Group 1: Acquisition Details - Huada Jiutian is planning to acquire a controlling stake in Chip and Semiconductor through a combination of share issuance and cash payment [2]. - The acquisition is expected to complement Huada Jiutian's existing product line and strengthen its position as a comprehensive EDA provider [2][3]. - The integration of both companies' products will allow for the development of complete EDA solutions across various domains, including RF, storage, power, and advanced packaging [3]. Group 2: Market Context - The semiconductor industry is shifting towards design and manufacturing co-optimization (DTCO) and system and manufacturing co-optimization (STCO) [2]. - Major international EDA companies are accelerating their transition to system-level optimization through strategic acquisitions, reshaping the EDA industry landscape [2]. - The acquisition aligns with national strategies and the implementation of the "six acquisition strategies" to foster new productive forces [3]. Group 3: Future Prospects - If the acquisition is successful, it will enable rapid integration of resources and technology, facilitating the establishment of a complete tool system from chip to system level [3]. - The deal is expected to significantly expand Huada Jiutian's market size and customer base, promoting sustainable business growth [3]. - A preliminary agreement has been signed, and a detailed transaction plan is expected to be disclosed within ten trading days during the suspension period [3].