Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 81.85 RMB per share, reflecting a 5% decrease from previous estimates [4][7]. Core Insights - The company is a leader in domestic CAD software, steadily advancing its 3D product development and deepening its global presence by recruiting top talent [4][14]. - Revenue projections for 2025-2027 are estimated at 0.938 billion, 1.068 billion, and 1.235 billion RMB, respectively, with net profits expected to be 0.061 billion, 0.084 billion, and 0.100 billion RMB [4][14]. - The company achieved a revenue growth of 5% year-on-year in the first three quarters of 2025, with a notable improvement in Q3 net profit, which increased by 141% year-on-year [4][14]. Financial Summary - Total revenue for 2023A was 828 million RMB, with projections of 888 million RMB for 2024A, 938 million RMB for 2025E, 1.068 billion RMB for 2026E, and 1.235 billion RMB for 2027E, reflecting growth rates of 37.7%, 7.3%, 5.6%, 13.9%, and 15.6% respectively [3]. - Net profit attributable to the parent company for 2023A was 61 million RMB, with projections of 64 million RMB for 2024A, 61 million RMB for 2025E, 84 million RMB for 2026E, and 100 million RMB for 2027E, showing significant growth in 2023A at 922.8% [3]. - Earnings per share (EPS) are projected to be 0.36 RMB for 2025E, 0.50 RMB for 2026E, and 0.59 RMB for 2027E [3][4]. Business Segmentation Forecast - The company anticipates a revenue growth of 5% for self-developed software in 2025, with an increase to 13% in 2026 and 15% in 2027 [11][12]. - The entrusted development segment is expected to see a revenue growth of 10% in 2025, rebounding to 20% in 2026 and 2027 as market demand increases [11][12]. - Revenue from purchased products and other businesses is projected to maintain steady growth at 5% for 2025-2027 [11][12].

Core Viewpoint - The company is a leading domestic CAD software provider, steadily advancing 3D product development and deepening its global presence [1][2]. Financial Performance - The company expects revenues of 938 million, 1.068 billion, and 1.235 billion yuan for 2025-2027, with net profits of 61 million, 84 million, and 100 million yuan respectively [2]. - For the first three quarters of 2025, the company achieved revenues of 538 million yuan, a 5% year-on-year increase, while the net profit attributable to shareholders was -41 million yuan [2]. - In Q3 alone, the company reported revenues of 204 million yuan, a slight increase of 0.08% year-on-year, and a net profit of 12 million yuan, marking a 141% year-on-year improvement [2]. Product Development - The company has entered a new phase in 3D product development, aiming to achieve the highest market share in the domestic design and R&D industrial software 3D sector by 2024 [3]. - The company is introducing high-end talent and adopting new R&D models to address significant technical challenges faced during the promotion of its ZW3D software across various industries [3]. Market Position - According to IDC's 2024 report, the company holds a 9.1% market share in the domestic CAD market, ranking first among local providers, and a 5% share in the 3D CAD software segment, also leading domestically [3]. Global Expansion - The company has developed over 800 channel partners across regions including Germany, France, Poland, Turkey, South Korea, Vietnam, the Middle East, and Japan, and has established localized subsidiaries in the US, Japan, Vietnam, Malaysia, and the UAE [3]. - The company serves over 1.4 million industrial users in more than 90 countries and regions, including major global enterprises such as Turkey Telecom, Saint-Gobain, and Honeywell, enhancing its international recognition [3].

Financial Performance - Company reported total revenue of 334 million yuan for the first half of 2025, an increase of 8.24% year-on-year [1] - Net profit attributable to shareholders was -52.41 million yuan, a significant decline of 976.9% compared to the previous year [1] - Gross margin decreased to 95.13%, down 2.64% year-on-year, while net margin fell to -15.26%, a drop of 634.85% [1] - Total operating expenses accounted for 74.86% of revenue, a slight decrease of 1.12% year-on-year [1] - Earnings per share was -0.31 yuan, a decrease of 875.0% year-on-year [1] Business Model and Market Position - Company relies heavily on R&D and marketing for its performance, indicating a need for thorough analysis of these drivers [2] - Historical data shows a median ROIC of 17.28% since its IPO, with a notable low of -6.12% in 2015 [2] - Company has faced challenges in maintaining strong capital returns, with a recent ROIC of 1.73% [2] Cash Flow and Receivables - Company’s cash flow situation is concerning, with a three-year average of operating cash flow to current liabilities at only 15.65% [2] - Accounts receivable reached 161.64% of net profit, indicating potential liquidity issues [2] Legal and Market Challenges - Company is currently facing a lawsuit from Autodesk, which it plans to address through negotiation and, if necessary, legal proceedings [5][6] - Despite the lawsuit, company believes that its sales will not be affected during the litigation period, as current laws allow for continued operations [6] - Company maintains strong relationships with its customers and partners, which it believes will support its ongoing sales efforts [6] Product Diversification - ZWCD is just one of many products offered by the company, with other products like ZW3D, CM, CE, and PLM gaining importance in revenue generation [7] - The company has been increasing investment in its 3D CAD product lines, which are expected to contribute positively to revenue despite the ongoing legal issues [7] Intellectual Property Management - Company emphasizes its commitment to protecting intellectual property and has implemented measures to avoid infringement [8] - It has received various accolades for its products, indicating a strong focus on compliance and quality in its R&D processes [8]

Investment Rating - The investment rating for the computer industry is "Buy" [2] Core Insights - The computer industry is experiencing a bottoming out of demand in 2024, with significant differences in structural performance across various segments. Companies are enhancing operational efficiency to cope with the challenges [6][14] - The median revenue growth rate for the industry in 2024 is -1.59%, a decrease of 4.88 percentage points from 2023. The median net profit growth rate is -2.24%, down 8.35 percentage points from the previous year [15] - The report highlights that while revenue and profit metrics are declining, the rate of decline is slowing, indicating potential for improvement in Q1 2025 [15][16] Summary by Sections 1. 2024 Annual Report: Bottoming Demand and Efficiency Improvements - The report analyzes the performance of 208 listed companies in the computer industry, revealing that the overall revenue growth is stabilizing, and profit margins are showing signs of recovery [14][15] - Different segments within the industry show varying performance, with IT hardware, trusted computing, and smart vehicle sectors demonstrating positive growth trends [16][28] 2. Demand Stabilization and Financial Indicators - The report notes that contract liabilities are beginning to improve, and accounts receivable growth is declining, indicating a more stable financial environment [23][24] - Cash inflows from sales of goods and services have significantly increased, reflecting a positive trend in operational cash flow [24] 3. Investment Activity and Valuation Levels - The report indicates an increase in net cash outflow from investment activities, suggesting an expansion trend among companies [26] - As of April 30, 2025, the industry’s price-to-earnings (P/E) ratio is 46 times, with software companies showing a higher P/E increase compared to hardware companies [19][20] 4. Key Areas of Investment Value - The report identifies several key areas with strong investment potential, including AI applications, domestic software and hardware replacements, and the smart driving industry [20][21] - The acceleration of domestic orders in trusted computing and the expansion of the Harmony OS ecosystem are expected to enhance the competitive edge of leading companies in the industry [20][21]

Core Insights - The company reported a revenue of 888 million yuan for 2024, representing a year-on-year growth of 7.31%, and a net profit attributable to shareholders of 64 million yuan, up 4.17% [1] - In Q1 2025, the company achieved a revenue of 126 million yuan, an increase of 4.56% year-on-year, but reported a net loss of 48 million yuan [2] Revenue Breakdown - The sales of 2D products showed steady growth, while the revenue contribution from 3D CAD products continued to enhance. The revenue from 2D CAD products grew by 2.12% year-on-year, while 3D CAD product revenue reached 242 million yuan, marking a 29.21% increase. CAE product revenue was 9.74 million yuan, up 36.23% [3] - The main product ZWCAD in the 2D CAD segment has matured in technology and application, providing a stable growth base for the company [3] - The company has developed a globally competitive 3D CAD platform software, ZW3D, which has seen significant performance improvements in 2025, enhancing capabilities in design, simulation, and processing integration [3] Ecosystem and Partnerships - The company is focused on building a sustainable and cooperative industrial design software ecosystem, offering integrated CAx solutions to meet diverse customer needs [4] - In 2024, the company achieved a 28.77% growth in overseas main business revenue, contributing positively to overall performance. The company has established partnerships with over 800 global channel partners, serving more than 1.4 million users across over 90 countries and regions [4] Profit Forecast and Investment Outlook - As a leading domestic CAD provider, the company is expected to see revenue growth driven by enhanced 3D CAD capabilities, domestic substitution, and overseas expansion. Projected revenues for 2025, 2026, and 2027 are 1.018 billion, 1.251 billion, and 1.470 billion yuan, with corresponding growth rates of 14.63%, 22.90%, and 17.53% [5] - The net profit attributable to shareholders is forecasted to be 78 million, 105 million, and 125 million yuan for the same years, with year-on-year growth rates of 22.00%, 34.69%, and 18.59% [5]

Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Insights - The company achieved a revenue of 888 million yuan in 2024, representing a year-on-year growth of 7.31%, and a net profit attributable to shareholders of 64 million yuan, up 4.17% [1]. - In Q1 2025, the company reported a revenue of 126 million yuan, with a year-on-year increase of 4.56%, although it recorded a net loss of 48 million yuan [1][3]. - The domestic commercial business generated 561 million yuan in revenue in 2024, growing by 12.13%, driven by the performance of ZWCAD and ZW3D products [2]. - The domestic education business saw a decline in revenue to 123 million yuan, down 25.61%, due to budget constraints and policy changes [2]. - The overseas business experienced significant growth, with revenue reaching 202 million yuan, an increase of 28.77%, supported by partnerships with over 800 global channel partners [2]. - The company is focusing on enhancing its "All-in-One CAx" solutions, with notable growth in the 3D CAD segment, which saw a revenue increase of 29.21% to 242 million yuan in 2024 [3]. Financial Forecasts - Revenue projections for 2025, 2026, and 2027 are estimated at 1,054 million yuan, 1,260 million yuan, and 1,514 million yuan, respectively, with growth rates of 18.7%, 19.5%, and 20.2% [5]. - The net profit attributable to shareholders is forecasted to be 110 million yuan in 2025, 151 million yuan in 2026, and 197 million yuan in 2027, with growth rates of 71.7%, 37.5%, and 30.3% [5]. - Earnings per share (EPS) are projected to be 0.91 yuan in 2025, 1.24 yuan in 2026, and 1.62 yuan in 2027 [5].

Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [4] Core Views - The company achieved a total operating revenue of 888 million yuan in 2024, representing a year-on-year growth of 7.31%, while the net profit attributable to the parent company was 63.96 million yuan, up 4.17% year-on-year [4][6] - In Q1 2025, the company reported an operating revenue of 126 million yuan, a year-on-year increase of 4.56%, but the net profit attributable to the parent company was -47.97 million yuan, showing a decline [4][6] - The company focuses on CAx core technologies, with significant growth in 3D CAD/CAE products, achieving a revenue growth of 29.21% and 36.23% respectively in 2024 [6][7] - The overseas business has been expanding, with a revenue growth of 28.77% in 2024, and a gross margin increase of 0.38% to 99.35% [6][7] - The company plans to distribute a cash dividend of 5 yuan (including tax) for every 10 shares to all shareholders, which accounts for 94.35% of the net profit attributable to the parent company in 2024 [6][7] Financial Performance Summary - The company is projected to achieve net profits of 85 million yuan, 111 million yuan, and 137 million yuan for the years 2025, 2026, and 2027 respectively [7] - The expected EPS for 2025, 2026, and 2027 is 0.70 yuan, 0.91 yuan, and 1.13 yuan respectively [7] - The company’s P/E ratios for 2025, 2026, and 2027 are projected to be 128.5, 98.7, and 80.1 respectively, while the P/S ratios are expected to be 10.7, 9.3, and 8.3 [7][8]