Core Insights - The recent product launch and seminar by Haochen Software showcased its latest offerings, including Haochen CAD 2026 and Haochen BIM 2025, highlighting the company's advancements in product development and strategic planning [1] Company Development - Haochen Software was founded by five classmates from Tsinghua University and has over 20 years of experience in core technology and global market expansion, achieving significant breakthroughs and successfully listing on the A-share market [2] - The company has transformed from CAD application software development to a 2D CAD platform software developer, overcoming initial challenges such as technology blockades and a lack of resources [2] - Since 2016, the company has been profitable, with a gross margin exceeding 90%, and has sold over 1.5 million software licenses globally [2] Market Position - Despite the progress made by domestic manufacturers, the 3D CAD market in China is still dominated by foreign companies, indicating a significant barrier to entry due to the complexity of 3D modeling technology [3] - Haochen Software has recognized the importance of mergers and acquisitions in the industrial software sector and has expanded its 3D business through the acquisition of CadLine, enhancing its capabilities in the BIM field [3] Strategic Collaborations - The company emphasizes the importance of collaboration within the industry and has established a long-term strategic partnership with Shanghai Ziqian Technology, aiming to create a comprehensive digital solution covering the entire product lifecycle [4] - The launch of Haochen-ZIXEL 3D CAD marks a significant step in expanding the company's 3D CAD product line and moving towards intelligent, collaborative, and high-performance industrial software [4] Product Innovation - Haochen Software has developed "Kantuwang," a cloud-based application that has become the most downloaded and active user software globally, with over 100 million users and 15 million monthly active users [5] - The company is set to launch Haochen CAD 365, a cloud design and collaboration platform, which integrates advanced CAD and cloud technologies to enhance flexibility and efficiency in design collaboration [5] Industry Perspective - The journey of domestic industrial software companies, including Haochen Software, reflects a long history of technological breakthroughs and market expansion, with a focus on resilience and continuous innovation [6]

Core Insights - Suzhou Haochen Software Co., Ltd. reported a revenue of 144 million yuan in the first half of 2025, marking a year-on-year growth of 13.47%, with a net profit of 26.557 million yuan, up 20.57% year-on-year [1] Group 1: Product Development - The company adheres to an independent R&D approach, having launched a 2D CAD platform in 2013, which has evolved through continuous technological iterations [2] - Haochen Software has developed various platform software compatible with multiple operating systems, enhancing compatibility and adaptability [2] - The company has expanded its product offerings to include applications for engineering and manufacturing sectors, and launched CAD cloud solutions for both individual and enterprise users [2] Group 2: Marketing Strategy - The company has established a global marketing network, collaborating with over 70 distributors across more than 100 countries, supporting its globalization strategy [3] - Focused on the manufacturing and engineering construction sectors, the company aims to deepen its market penetration and develop vertical industry cloud solutions [3] - The company is enhancing its competitive advantage by targeting key industry clients and optimizing its distribution network in both domestic and international markets [3] Group 3: Business Growth - The CAD cloud business has shown strong growth in the first half of 2025, with increased user engagement and brand strength [4] - The flagship product "Haochen CAD Viewer" continues to lead in the C-end market, expanding its user base and commercial capabilities [4] - The B-end application market is seeing increased penetration of the Haochen CAD 365 cloud platform, providing stable and efficient design solutions for enterprise users [4]

Core Viewpoint - The company's overall performance in 2024 meets market expectations, with a positive long-term growth potential due to continuous product line enhancement and localized service advantages [1] Investment Highlights - The investment recommendation is to maintain a "buy" rating, with the target price raised to 52.42 yuan (+8.99 yuan). The company is expected to enhance product competitiveness and market share through continuous product line improvement and layout in the信创 market, further consolidating and expanding domestic and international markets. EPS forecasts for 2025-2027 are 1.15 (+0.27), 1.36 (+0.21), and 1.58 yuan respectively. A PE of 45.5 times is assigned for 2025, leading to the target price adjustment [2] - In 2024, the company achieved an operating income of 289 million yuan, a year-on-year increase of 3.93%. The CAD software business's domestic market revenue slightly declined due to cyclical fluctuations in downstream industries and a slowdown in demand from small and medium-sized clients. However, the CAD cloud business and internet advertising promotion business saw significant growth, driven by the promotion of the CAD viewing product, becoming the main growth drivers for the company's performance. The net profit attributable to shareholders in 2024 was 62.99 million yuan, a year-on-year increase of 16.37%, mainly due to increased interest income and a decrease in financial expenses by 10.2 million yuan [2] Product Development and Market Strategy - The company is continuously enhancing its product line to solidify its core business competitiveness. In the CAD software sector, the company completed the full acquisition of Hungarian CadLine and released multiple upgraded versions, accelerating localized R&D and building a self-controlled domestic 3DBIM software system. In the CAD cloud business, the company launched the cloud product Haocad CAD 365 for B-end application scenarios, promoting product upgrades to cloud-based cross-terminal solutions and actively exploring the construction of a domestic CAD cloud platform, gradually forming a differentiated competitive advantage [3] - The acceleration of domestic substitution and emphasis on global layout in software exports provide the company with a competitive edge. Recent national policies focus on core technology breakthroughs in software, and under the encouragement of policies for Chinese companies to go global, domestic industrial software is experiencing new development opportunities. The company has actively promoted信创 business, with over 70% of downstream clients being state-owned enterprises across various industries, while also expanding its global presence in the Asia-Europe market, demonstrating resilience against U.S. tariff policies. The company aims to leverage superior product quality, relative price advantages over international competitors, and lightweight product features to gain a more favorable position in global competition [3]