Core viewpoint:

The pattern is gradually improving, and the position of Zhongwang is further consolidated. In the field of 3D CAD, domestic manufacturers mainly include ZWSOFT, Xindi Digital and Huatian Software, among which Huatian Software has limited penetration in the mid-to-high-end manufacturing field, and there is still a certain gap with ZWSOFT in terms of scale and revenue. In addition, the geometric modeling engine project OGG developed by Huawei is currently in the maintenance and upgrade stage of the official website, and its subsequent development still needs to be observed. In the environment where capital tends to be cautious, ZW, and other enterprises that truly have core technical capabilities and commercialization strength in the CAD field will usher in new development opportunities.

Technology-driven, geometrical components with high barriers. Geometric modeling engine and constraint solving engine are the two core components in the field of 3D CAD, which have been monopolized by overseas manufacturers for a long time due to high technical barriers and long R&D cycles, and domestic independent and controllable solutions are relatively scarce.

Compared to Dassault, the maturity of 3D CAD is expected to drive higher valuations. ZW's similarity with Dassault, a leading overseas manufacturer, is relatively high, but with the continuous improvement of the performance of 3D products, it is expected to usher in more opportunities in the high-end manufacturing industry. In the next five years, ZW's revenue is expected to maintain a growth center of 20%, which is twice the steady state growth rate of Dassault in the past few years. At the same time, cash flow and profitability will improve significantly. Dassault's high valuation premium stems from its leadership position in the high-tech industry, especially in the integration of 3D CAD and CAT, and the market is generally optimistic about its stable cash flow prospects. With the optimization of the pattern and the continuous breakthrough of ZW's product performance in the field of 3D CAD and downstream customers, its valuation is expected to gradually align with Dassault, especially under the multiple trends of localization + legalization + going overseas, and will enjoy more market recognition and valuation premium.

Profit forecasts and investment recommendations. It is estimated that in 24~26 years, the company's revenue will be 918 million yuan, 1.092 billion yuan and 1.343 billion yuan respectively, considering that Zhongwang is a scarce leading company with domestic independent controllable 3D CAD products, with reference to the valuation of comparable companies, it will be given a valuation multiple of 12X PS in 2025, with a reasonable value of 108.07 yuan per share per share, and maintain a "buy" rating risk warning. The R&D iteration of new products is less than expected; uncertainty of the recovery of the downstream industry; Domestic substitution is less than expected.