Quarterly Performance Outlook | Huada Jiutian: EDA Tool Demand Growth, Q1 Operating Revenue Forecasted at 320 Million Yuan, YoY Change of 36.6%

MaticHoleFiller · 2026-03-16T11:37:56+00:00

Goldman Sachs views Huada Jiutian as a leading domestic EDA tool provider that benefits from China's localization trends, which have driven tool adoption. Although comprehensive expansion still requires time, digital/foundry EDA revenues are expected to grow significantly, with Huada Jiutian's revenue still projected to grow 42%/40% in 2026/27.

MaticHoleFiller

2026-03-16 11:37:56

Abstract generation in progress

Goldman Sachs believes that Huada Jiutian, as a leading domestic EDA (Electronic Design Automation) tool provider in China, is benefiting from the localization trend and capacity expansion of EDA tools in the Chinese market, driving the increasing popularity of its tools. The company has already covered analog and memory EDA solutions, but a full expansion into digital EDA and foundry EDA tools to achieve scale growth still takes time. Huada Jiutian continues to develop point tools (such as placement and routing tools), and it is expected that comprehensive coverage of EDA tools will promote large-scale customer adoption. The revenue contribution from digital/foundry EDA tools is projected to grow from 27%/34% in 2024/25 to 39%/43% in 2027/28. Due to lower revenue from digital/foundry EDA and high R&D expenses, we have lowered our forecasts for 2025-28 by 17% to 20%. Nonetheless, we still expect Huada Jiutian’s revenue to grow by 42%/40% in 2026/27 respectively.

By business segment:

Full-process digital EDA tools: Huada Jiutian is developing some point tools for digital customers, such as DFT (Design for Testability), placement, and routing tools. It is expected that comprehensive coverage of digital EDA will drive increased user adoption. As domestic GPU/ASIC vendors (such as Hygon, MetaX, etc.) continue to release new-generation platforms, demand for EDA tools is rising, and the company is expected to accumulate experience to better meet customer needs.

(Note: This content is generated based on Chaoyang Yongxu AI technology, and all related profit forecast data in the article are from the Chaoyang Yongxu profit forecast database.)

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