Group 1 - The company maintains a strong domestic leadership position in the EDA industry and plans to fully acquire Chip and Semiconductor to complete its EDA product matrix, supported by the change of actual controller to China Electronics Group, which is expected to enhance the company's long-term development momentum [1][4] - The company is projected to achieve revenues of 15.98 billion, 21.37 billion, and 27.55 billion yuan for the years 2025-2027, with EPS of 0.43, 0.57, and 0.72 yuan respectively, reflecting an upward adjustment in target price to 147.19 yuan based on a 50x PS valuation for 2025 [2] - In 2024, the company reported a revenue of 12.22 billion yuan, a year-on-year increase of 20.98%, while net profit attributable to shareholders decreased by 45.46% to 1.09 billion yuan due to increased share-based payment expenses and rising personnel costs [3] Group 2 - The company has nearly 700 global clients, maintaining the top market share among domestic EDA firms, and has achieved comprehensive coverage of the analog circuit design process, supporting advanced processes such as 5nm, 14nm, and 28nm [4] - The actual controller change to China Electronics Group is expected to facilitate breakthroughs in the industry, accelerating the domestic substitution of EDA tools, with new product launches such as the GPU-based Liberal-GT tool and the Vision platform for process diagnosis [3][4]

Core Viewpoint - 华大九天 reported a revenue of 1.222 billion yuan for 2024, representing a year-on-year increase of 20.98%, while the net profit attributable to shareholders was 109 million yuan, down 45.46% year-on-year [1] Group 1: Financial Performance - In Q4 2024, the company achieved a revenue of 479 million yuan, up 29.13% year-on-year, with a net profit attributable to shareholders of 50.93 million yuan, an increase of 73.71% year-on-year [1] - The company's net profit exceeded expectations due to a 44.1% year-on-year increase in investment income from long-term equity investments [1] Group 2: Product Line Expansion - The EDA software sales revenue for 2024 was 1.092 billion yuan, a year-on-year increase of 20.71%, while technical development service revenue was 115 million yuan, up 40.01% year-on-year [2] - New products launched include a GPU-based unit library characterization extraction tool, Liberal-GT, and a parasitic parameter analysis tool, ADA, which are expected to drive revenue growth in 2025 [2] Group 3: Competitive Advantage and Customer Base - The company has nearly 700 global customers, and the full-process product offering is expected to enhance data compatibility, precision consistency, and reduce costs, thereby expanding the customer base [3] Group 4: M&A Activity - The company plans to acquire 100% of Chip and Semiconductor, which specializes in system-level design simulation and supports advanced packaging [4] - The projected revenue and net profit for Chip and Semiconductor in 2024 are 265 million yuan and 48 million yuan, respectively [4] Group 5: Profit Forecast and Valuation - Revenue projections for 2025-2027 are 1.881 billion yuan, 2.469 billion yuan, and 3.142 billion yuan, with net profit estimates of 245 million yuan, 318 million yuan, and 396 million yuan for the same period [5] - The target price has been raised to 129.85 yuan, reflecting an increase in the expected price-to-sales ratio due to enhanced product capabilities and market share growth [5]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant price increase over the next 6-12 months [5]. Core Insights - In 2024, the company achieved a revenue of 1.222 billion RMB, representing a year-on-year growth of 20.98%, while maintaining the leading market share among domestic EDA companies. However, the net profit attributable to the parent company decreased by 45.46% to 109 million RMB [2]. - The company continues to expand its product matrix through self-research and mergers and acquisitions, launching new EDA tools that enhance simulation efficiency significantly [4]. - The company’s revenue projections for 2025 to 2027 are 1.661 billion RMB, 2.138 billion RMB, and 2.708 billion RMB, with expected growth rates of 35.91%, 28.68%, and 26.66% respectively [5]. Summary by Sections Performance Review - In Q4 2024, the company reported a revenue of 479 million RMB, a year-on-year increase of 29.13%, and a net profit of 51 million RMB, up 73.71% [2]. - The EDA software sales revenue for 2024 was 1.092 billion RMB, growing by 20.71%, while the technical services revenue reached 115 million RMB, increasing by 40.01% [3]. Business Analysis - The company’s gross margin for 2024 was 93.31%, a slight decrease of 0.48 percentage points from the previous year. The sales, management, and R&D expense ratios were 16.31%, 12.05%, and 60.79%, respectively, showing a decline compared to the previous year [3]. - The company’s overseas revenue accounted for 4.72% of total revenue, with a year-on-year decline of 13.32% [3]. Future Outlook - The company is expected to enhance its market share through strategic acquisitions, including the planned purchase of a semiconductor control company, which will provide comprehensive EDA solutions [4]. - The projected net profits for 2025, 2026, and 2027 are 158 million RMB, 218 million RMB, and 285 million RMB, respectively, with corresponding price-to-sales ratios of 39.67, 30.83, and 24.34 [5].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5][13]. Core Insights - In 2024, the company achieved a revenue of 1.222 billion RMB, representing a year-on-year growth of 20.98%, while maintaining the leading market share among domestic EDA companies. However, the net profit attributable to the parent company decreased by 45.46% to 109 million RMB, with a non-recurring net profit loss of 57 million RMB [2]. - The company continues to expand its product matrix through self-research and mergers and acquisitions, launching new EDA tools that enhance simulation efficiency significantly. The acquisition of a semiconductor control company is expected to improve the company's market coverage and share [4]. Summary by Sections Performance Review - In Q4 2024, the company reported a revenue of 479 million RMB, a year-on-year increase of 29.13%, and a net profit of 51 million RMB, up 73.71% year-on-year [2]. Operational Analysis - The EDA software sales revenue for 2024 was 1.092 billion RMB, growing by 20.71%, while the technical services revenue reached 115 million RMB, up 40.01%. However, hardware and other income fell by 35.71% to 15 million RMB. The overseas revenue accounted for 4.72% of total revenue, declining by 13.32% [3]. - The gross profit margin for 2024 was 93.31%, a slight decrease of 0.48 percentage points from the previous year. The sales, management, and R&D expense ratios were 16.31%, 12.05%, and 60.79%, respectively, showing a year-on-year decline [3]. Profit Forecast and Valuation - Revenue projections for 2025 to 2027 are 1.661 billion RMB, 2.138 billion RMB, and 2.708 billion RMB, with growth rates of 35.91%, 28.68%, and 26.66%, respectively. The net profit forecasts for the same period are 158 million RMB, 218 million RMB, and 285 million RMB, corresponding to price-to-sales ratios of 39.67, 30.83, and 24.34 [5][10].