Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company plans to acquire 100% of Rui Cheng Microelectronics and 45.64% of NaNeng Microelectronics through a combination of stock issuance and cash payment, aiming to build a dual-engine model of "EDA + IP" [4] - The company has achieved a revenue of 419 million yuan in 2024, representing a year-on-year growth of 27.42%, with a significant contribution from EDA software licensing and semiconductor device testing systems [5] - The company has increased its R&D investment to 289 million yuan in 2024, accounting for 68.90% of its operating revenue, indicating a strong commitment to innovation and domestic substitution [6] Company Overview - The latest closing price of the company's stock is 27.66 yuan, with a total market capitalization of 12 billion yuan [3] - The company has a total share capital of 4.35 billion shares, with 1.78 billion shares in circulation [3] - The company has a debt-to-asset ratio of 20.0% and a negative price-to-earnings ratio of -125.73 [3] Financial Projections - The company is expected to achieve revenues of 525 million yuan, 658 million yuan, and 826 million yuan in 2025, 2026, and 2027 respectively, with corresponding net profits of 10 million yuan, 30 million yuan, and 64 million yuan [8][10] - The projected growth rates for revenue are 25.29%, 25.39%, and 25.46% for the years 2025, 2026, and 2027 respectively [10] - The company anticipates a significant improvement in net profit margins, with a projected net profit margin of 7.7% by 2027 [10]

Investment Rating - The report maintains a "Buy" rating for the company [1][11][12] Core Insights - The company achieved a turnaround in net profit for Q1 2025, with a net profit of 0.02 billion yuan compared to a loss of 0.36 billion yuan in the same period of 2024 [5][6] - The company is actively expanding its market presence through acquisitions, including the planned purchase of Rui Cheng Chip and Na Neng Micro, which will enhance its semiconductor IP business [8][9] - The company has shown a significant increase in R&D investment, with a 21.84% year-on-year increase in 2024, indicating a commitment to enhancing its competitive edge [7] Financial Performance Summary - In 2024, the company reported revenue of 4.19 billion yuan, a year-on-year increase of 27.42%, while the net profit was a loss of 0.96 billion yuan [5][6] - For Q1 2025, the company reported revenue of 0.91 billion yuan, up 11.75% year-on-year, and a net profit of 0.02 billion yuan, marking a significant improvement from the previous year's loss [5][6] - The company’s revenue from EDA software licensing and semiconductor testing showed varied growth, with EDA software licensing revenue increasing by 23.17% for integrated circuit manufacturing EDA [6] Market Position and Growth Potential - The company has a strong customer base and has successfully integrated multiple acquisitions, enhancing its product offerings and technical capabilities in the EDA sector [11] - The forecast for revenue growth is optimistic, with projected revenues of 5.34 billion yuan in 2025, 6.88 billion yuan in 2026, and 8.92 billion yuan in 2027, reflecting a compound annual growth rate of approximately 28% [10][11] - The company’s average revenue contribution per customer increased by 20.8% year-on-year, indicating improved customer engagement and market penetration [6]