Foxit Software(688095) Xinda Securities·2025-05-12 07:45Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown a recovery in demand in the first quarter, which enhances the annual expectations, and the counter-cyclical adjustment brings new opportunities for domestic software [1] - The company is a global leader in the PDF sector, maintaining a significant market share [2] - The subscription transformation is gradually showing results, with the new subscription plan effectively reducing user decision costs and enhancing the subscription transition process [3] Financial Performance - In Q1 2025, the company achieved revenue of 202 million yuan, a year-on-year increase of 19.78%, and a net profit attributable to the parent company of -6 million yuan, compared to -11 million yuan in the same period last year [1] - For the full year 2024, the company expects total revenue of 711 million yuan, a growth rate of 16.4%, and a net profit attributable to the parent company of 27 million yuan, a significant turnaround from a loss of 91 million yuan in 2023 [5] - The subscription business is projected to generate 411 million yuan in Annual Recurring Revenue (ARR) in 2024, reflecting a 64.42% increase year-on-year [3] Market Performance - The company has seen strong revenue growth across various regions, with the Asia-Pacific market growing by 53.42%, Europe (including the Middle East) by 24.02%, and North America by 9.41% [3] - The North American market accounted for 53% of total revenue, while the Chinese market showed an 18% increase following the acquisition of Foxit Kunpeng [3] Research and Development - The company maintains high R&D investment levels, with a comprehensive AI empowerment strategy being fully implemented in 2024 [3] - New AI features have been added to traditional editing tools, enhancing document processing efficiency [3] Earnings Forecast - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.60 yuan, 1.21 yuan, and 1.45 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 118.97, 58.60, and 48.87 [4]