Core Insights - The report highlights a selection of stocks for May, including companies like SF Holding and Guizhou Moutai, indicating potential investment opportunities in various sectors [1] Industry Overview - The pharmaceutical industry faced challenges in 2024 and Q1 2025, with a slight decrease in revenue and net profit. However, R&D expenses continue to rise, and the impact of centralized procurement and anti-corruption measures is gradually weakening, suggesting a potential recovery in revenue and profit as innovative products are launched [2][7][8] - In 2024, the pharmaceutical sector's total revenue was CNY 2.47 trillion, down 1.53% year-on-year, with a net profit of CNY 122.83 billion, down 8.07%. In Q1 2025, revenue was CNY 603.70 billion, down 6.14%, and net profit was CNY 42.82 billion, down 15.66% [8][9] Company Performance - Anji Technology reported a revenue of CNY 1.835 billion in 2024, a year-on-year increase of 48.24%, with a net profit of CNY 534 million, up 32.51%. In Q4 2024, revenue reached CNY 523 million, up 53.90% year-on-year [3][12] - Foxit Software achieved a revenue of CNY 711 million in 2024, a 16.44% increase, and turned a profit with a net income of CNY 27 million. The company’s subscription business showed strong growth, with an annual recurring revenue (ARR) of CNY 411 million, up 64.42% [17][18] Market Trends - The semiconductor CMP polishing materials market is projected to grow, with Anji Technology increasing its global market share from approximately 7% to 11% over three years. The global market size for CMP polishing materials is expected to reach USD 4.4 billion by 2028, with a CAGR of 5.6% from 2024 to 2028 [14] - The functional wet electronic chemicals segment saw a revenue increase of 78.91% in 2024, indicating strong demand and market expansion [15] R&D and Innovation - The pharmaceutical sector's R&D expenditure reached CNY 138.33 billion in 2024, a 1.25% increase from 2023, with significant investments in chemical pharmaceuticals and medical consumables [10] - Foxit Software's dual transformation strategy focusing on subscription and channel prioritization has shown positive results, with a notable increase in subscription revenue contributing to overall growth [17][19]

Investment Rating - The report maintains a "Recommended" investment rating for the company [3][12]. Core Insights - The company has shown strong subscription metrics that support its main business growth, with a dual transformation strategy aiding in expanding its domestic market presence [3][7]. - In 2024, the company achieved a revenue of 711 million yuan, a year-on-year increase of 16.44%, and a net profit of 26.96 million yuan, marking a turnaround from losses [3][8]. - The first quarter of 2025 saw a revenue of 202 million yuan, reflecting a year-on-year growth of 19.78%, although it reported a net loss of 5.83 million yuan, which is a 45.02% reduction in losses compared to the previous year [3][8]. Summary by Sections Financial Performance - The company’s revenue is projected to grow from 711 million yuan in 2024 to 1.26 billion yuan by 2027, with annual growth rates of 16.4%, 19.7%, 21.0%, and 22.5% respectively [6][10]. - The net profit is expected to increase significantly from 27 million yuan in 2024 to 162 million yuan by 2027, with a year-on-year growth of 129.6% in 2025 [6][10]. - The gross margin is projected to remain high, around 92% over the forecast period, while the net margin is expected to improve from 3.8% in 2024 to 12.9% in 2027 [10]. Subscription and Channel Transformation - The company has successfully transitioned to a subscription model, with subscription revenue reaching 1.06 billion yuan in Q4 2024, a year-on-year increase of 54.89% [7]. - The Annual Recurring Revenue (ARR) from subscription services was 411 million yuan in 2024, growing by 64.42% year-on-year, and is expected to reach 452 million yuan by Q1 2025 [7]. Strategic Initiatives - The company is focusing on a dual strategy of "Fuxin International" and "Fuxin China," aiming to enhance its PDF editing solutions and expand into high-value sectors such as government and healthcare [8]. - The acquisition of Fuxin Kunpeng and other strategic moves are expected to deepen the company's market penetration and drive future growth [8]. Market Position - The company holds a strong position in the PDF electronic document solutions market, with proprietary technology and competitive products [8]. - The report highlights the company's efforts to explore opportunities in emerging markets, particularly in the Asia-Pacific region, which has shown significant revenue growth [7].