Foxit Software(688095) 平安证券·2024-11-20 08:42Investment Rating - The report initiates coverage with a "Buy" recommendation for the company [2]. Core Views - The company is positioned as a leading provider of PDF electronic document solutions, with a dual transformation strategy driving growth. The revenue for the first three quarters of 2024 reached 509 million yuan, reflecting a year-on-year growth of 15.1% [4][52]. - The company has a strong competitive position in the global PDF market, ranking among the top tier, and has successfully increased its subscription revenue significantly [5][10]. - The company is actively expanding its business opportunities in the OFD (Office Document Format) sector and industry-specific applications, which are expected to contribute to future growth [9][10]. Summary by Sections Company Overview - The company has been deeply engaged in PDF electronic document solutions for over 20 years and has actively participated in the formulation of industry standards [28]. - It has established a global presence with users in over 200 countries and regions, and its main revenue sources are from PDF editors and readers, accounting for 77% of total revenue in the first half of 2024 [4][58]. Financial Performance - The company reported a net profit of 38.67 million yuan in the first three quarters of 2024, turning a profit primarily due to investment gains from the acquisition of Foxit Kunpeng [4][52]. - Revenue growth is expected to continue, with projections of 728 million yuan in 2024, representing a year-on-year growth of 19.2% [10]. Competitive Position - The company ranks among the top tier in the global PDF market, with significant improvements in subscription revenue, which accounted for 48% of total revenue in the first three quarters of 2024 [5][10]. - The company has established partnerships with major technology firms and has been recognized for its PDF technology capabilities [28][29]. Strategic Initiatives - The dual transformation strategy focusing on subscription and channel sales has shown positive results, with a notable increase in subscription revenue from 216 million yuan in 2023 to 245 million yuan in the first three quarters of 2024 [5][10]. - The company has acquired a controlling stake in Foxit Kunpeng to enhance its capabilities in the OFD sector, which is expected to drive future revenue growth [9][10]. Future Outlook - The company is expected to continue its growth trajectory, with revenue projections of 881 million yuan in 2025 and 1.078 billion yuan in 2026, alongside a significant increase in net profit [10].