Investment Rating - The report upgrades the investment rating of the company to "Strong Buy" [2][12]. Core Viewpoints - The company is positioned as a leader in the domestic CAD software market, focusing on an All-in-One CAx strategy to enhance its product offerings and market share [7][17]. - The CAD market in China is experiencing rapid growth, driven by the digital transformation of the manufacturing industry and strong policy support for domestic alternatives [8][13]. - The company has a robust competitive advantage due to its proprietary technology and comprehensive product matrix, which includes 2D CAD, 3D CAD, CAE, and CAM solutions [11][12]. Financial Summary - Projected total revenue for 2024A is 888 million, with a year-on-year growth rate of 7.3% [3]. - Expected net profit attributable to shareholders for 2024A is 64 million, reflecting a growth rate of 4.2% [3]. - The company anticipates revenue growth of 15.6%, 16.7%, and 17.3% for the years 2025E, 2026E, and 2027E, respectively [12]. Business Overview - The company has a complete product line in CAD/CAE/CAM and has successfully penetrated international markets, selling products in over 90 countries [17]. - The 2D CAD segment accounted for 47% of revenue in 2024, while 3D CAD contributed 24% [7][12]. - The company is actively investing in educational products to cultivate user habits and expand its market reach [23][24]. Market Dynamics - The CAD market in China grew from 1.3 billion in 2016 to 5.48 billion in 2023, with a CAGR of 22.82% [13]. - The market is still dominated by three major international players, but domestic companies are gaining ground due to national policies promoting self-sufficiency [13][49]. - The company holds a market share of 9.6% in the overall CAD market and 4.4% in the 3D CAD segment, ranking fourth among competitors [7][13]. Strategic Initiatives - The company is focusing on enhancing its product capabilities and expanding its global distribution network to drive future growth [12][29]. - The All-in-One CAx strategy aims to integrate design, simulation, and manufacturing processes, creating a cohesive platform that increases customer loyalty [11][12]. - The company plans to continue its overseas localization strategy to optimize its global marketing efforts [12][29].

Core Insights - The company reported a revenue of 888 million yuan for 2024, a year-on-year increase of 7.31%, and a net profit attributable to shareholders of 63.96 million yuan, up 4.17% year-on-year [1] - In Q1 2025, the company achieved a revenue of 126 million yuan, a year-on-year growth of 4.56%, but reported a net loss attributable to shareholders of 47.7 million yuan, indicating an expanded loss compared to the previous year [1] - The domestic commercial market showed steady growth, while the overseas market experienced significant expansion, with overseas revenue reaching 202 million yuan in 2024, a year-on-year increase of 28.77% [2] Domestic Market Performance - The domestic commercial market generated revenue of 561 million yuan in 2024, reflecting a year-on-year growth of 12.13% despite macroeconomic pressures [1] - The domestic education market faced challenges, resulting in a revenue decline of over 25% year-on-year due to budget constraints and policy changes [1] Product Performance - The 2D CAD product line generated revenue of 482 million yuan in 2024, with a modest growth of 2.12% [2] - The 3D CAD product line, benefiting from previous investments, achieved revenue of 242 million yuan in 2024, marking a significant year-on-year growth of 29.21% [2] Organizational and Operational Improvements - The company has made structural adjustments to enhance service quality for key accounts (KA) and small to medium enterprises, integrating business and R&D teams [3] - The sales expenses decreased by 4.87% year-on-year in 2024, with further reductions in Q1 2025, indicating improved cost control [4] Future Outlook - Revenue projections for 2025-2027 are adjusted to 1.011 billion yuan, 1.168 billion yuan, and 1.352 billion yuan respectively, with net profits expected to be 94 million yuan, 129 million yuan, and 175 million yuan [5] - The company maintains a "buy" rating due to competitive advantages in 3D products, rapid growth in overseas markets, and ongoing improvements in management and operational efficiency [5]

Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the analysis suggests a positive outlook based on growth and market position [8]. Core Viewpoints - The company has demonstrated significant revenue growth in its 3D CAD segment, achieving a revenue of 242 million yuan in 2024, which represents a year-on-year increase of 29.21% [1]. - The company has made breakthroughs in three key technical dimensions: core stability, parametric stability, and large assembly design support capabilities [1]. - The company has successfully expanded its key account (KA) customer base and deepened channel cooperation with major clients in various sectors [1]. - The company has achieved notable success in overseas markets, with a main business revenue growth rate of 28.77% [1]. - The global industrial software market is projected to be approximately 520 billion USD in 2024, indicating substantial growth potential for the company [1]. Financial Summary - In 2024, the company reported total revenue of 888 million yuan, a year-on-year growth of 7.31%, and a net profit attributable to the parent company of 64 million yuan, reflecting a growth of 4.17% [2]. - The company's gross margin improved to 94.4% in 2024, while the sales expense ratio decreased by 5.96% [1]. - The earnings per share (EPS) for 2025 is projected to be 0.63 yuan, with corresponding price-to-earnings (P/E) ratios of 140.38, 121.21, and 105.44 for 2025, 2026, and 2027 respectively [2][3].