Core Insights - Company reported a slight miss in Q3 2025 earnings expectations, with revenue of 4.03 billion yuan and a net profit of 228 million yuan, reflecting a year-on-year revenue growth of 20.93% but a net profit decline of 11.49% [1] - The company is experiencing a positive trend in internet switch revenue, driven by the delivery of data center products and innovative offerings such as 400G and 800G LPO optical modules [2] - The company has adjusted its profit forecasts for 2025 and 2026 downwards by 5.3% and 8.6% respectively, while maintaining an outperform rating and adjusting the target price down by 13.4% to 97 yuan [3] Financial Performance - For the first three quarters of 2025, the company achieved revenue of 10.68 billion yuan, a year-on-year increase of 27.50%, and a net profit of 680 million yuan, up 65.26% [1] - In Q3 2025, the company’s revenue was 4.03 billion yuan, showing a year-on-year growth of 20.93% but a quarter-on-quarter decline of 2.00% [1] - The gross margin for Q3 2025 improved to approximately 35.56%, a quarter-on-quarter increase of 5 percentage points, attributed to a recovery in the higher-margin campus network business [1] Business Development - The company is seeing a continuous increase in internet switch revenue, with a positive outlook for data center switch business as major internet firms prepare for new procurement rounds [2] - Innovative products such as the 1.6T silicon photonic LPO and ETH 128 supernode have been showcased, indicating the company's commitment to enhancing performance in low power consumption and reliability [2] - A new stock incentive plan has been proposed to motivate key employees, with performance targets set for net profit growth over the next three years [2] Profit Forecast and Valuation - The company has revised its profit forecasts for 2025 and 2026 downwards to 980 million yuan and 1.4 billion yuan respectively, reflecting cautious considerations regarding future expenses [3] - The current stock price corresponds to a P/E ratio of 44.0 times for 2026, with a target price adjustment based on a revised industry valuation [3]

Core Points - The "2025 Super Node Data Center Industry Summit and High-Density Data Center Developer Forum" will be held from November 26-28 in Hangzhou, Zhejiang, focusing on topics such as super node data center architecture design, interconnection technology, optical module packaging trends, liquid cooling technology, and high thermal conductivity materials [2] - The forum is organized by Cheqian Information and Thermal Design Network, expecting over 40 speakers and 500 industry experts to attend [2] - The event will feature a main conference and two specialized sessions for in-depth discussions [2] Group 1: Main Conference Topics - Core technologies and challenges of super node data centers will be discussed, including new product releases from companies like H3C Group and Intel [3][14] - A key presentation will cover ultra-high-density AI cluster liquid cooling technologies by Sugon Data Infrastructure Innovation Technology [3][14] - Innovations in AI chip interconnection protocols and the evolution of super node optical interconnection will be presented by China Mobile Communication Group Design Institute [4][14] Group 2: Specialized Session 1 - Optical Interconnection and Module Technology - Discussions will include topics from companies like Zhongji Xuchuang and Fenghuo Communication Technology on optical interconnection and module technologies [5][6] - The session will also cover the opportunities and challenges posed by AI computing on optical interconnection by HiSilicon [5][16] - Presentations will address the trends and opportunities in super node optical interconnection technology by H3C Technology and Fudan University [5][16] Group 3: Specialized Session 2 - Chip-Server-Data Center Thermal Management Technology - Key topics will include GPU packaging heat dissipation and interconnection technologies, with insights from Advanced Electronic Materials International Innovation Research Institute [16] - The session will also explore the thermal challenges and countermeasures for high-speed optical modules in the AI era by Harman (China) Investment [6][16] - Liquid cooling solutions and AI energy-saving technologies will be discussed by Fenghuo Communication Technology [21]

Core Viewpoint - Ruijie Networks (301165) announced on October 23 that its supernode technology is designed to meet high bandwidth interconnection needs within cabinets, with mature solutions based on 400G and 800G switching chips, supporting interconnection and large-scale deployment of dozens to hundreds of GPU cards [1] Group 1: Technology and Market Opportunities - The construction of supernodes presents new market opportunities for switch manufacturers, highlighting the increasing importance of network nodes and their closer integration with computing nodes to enhance overall efficiency [1] - The company leverages its expertise in Ethernet interconnection and optical communication (LPO, NPO, CPO) to co-create solutions with clients, indicating a collaborative approach to innovation [1] - There are already practical cases demonstrating the market potential of the supernode technology, suggesting a positive outlook for future developments [1]

Core Viewpoint - Ruijie Networks (301165) announced on October 23 that the operator market has a clear plan for domestic substitution, with a special section for domestic products in the 2024 network equipment procurement focusing on low-speed products (3T/2.4T) [1] Group 1: Domestic Substitution in Operator Market - The operator market is actively promoting domestic substitution with specific plans for 2024 [1] - A special section for domestic products will be set in the 2024 network equipment procurement [1] - The focus will be on low-speed products, specifically 3T and 2.4T [1] Group 2: Internet Market and Domestic Penetration - Currently, there are no mandatory requirements for domestic substitution in the internet market, leading to a low penetration rate [1] - Domestic products are limited by process technology and cannot fully replace foreign counterparts in the same generation [1] - The domestic 12.8T chip has just begun mass production, and there are high-speed product solutions through special packaging processes [1] Group 3: Campus Network and Chip Availability - In the campus network sector, there are no bottlenecks for domestic substitution [1] - There are multiple manufacturers available for chips with specifications of 2.4T/3T and below [1] Group 4: Long-term Outlook for Internet Market - The release of 384 ultra-node computing cabinets by competitors and other domestic manufacturers' ultra-node solutions is expected to enhance domestic penetration in the internet market over the long term [1] - However, short-term penetration in the internet market remains slow [1]

证券日报网讯 锐捷网络（301165）10月23日发布公告，在公司回答调研者提问时表示，三季度收入环 比略有下降与H20被禁无直接关系，主要受开票结算进度影响。直销模式下账期较长（通常三个月以 上），收入确认需平衡交付进度与回款，且部分行业（如教育）受暑假影响验收节奏，但整体波动不 大。 ...

证券日报网讯锐捷网络（301165）10月23日发布公告，在公司回答调研者提问时表示，字节近期框采规 模和公司中标份额均较去年同期有所增加，产品构成有所变化，包括TH5TH6TD4等不同规格产品；去 年以400G为主，今年800G数量会增加；结合LPO方案，形成LPO+400/800G交换机的产品组合，以适应 SCALEUP超节点以及大型智算网络对整体功耗及散热管理的需求。预计明年公司整体数据中心交换机 出货中400G产品仍占据最大比例，同时，800G产品占比将进一步提升。 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [5][20]. Core Views - The company is expected to benefit continuously from the development of AI and data centers, with a significant increase in revenue and profit forecasted for 2025-2027 [3][20]. - The company has launched an equity incentive plan, reflecting confidence in future growth, with specific performance targets set for net profit growth [2][20]. Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 10.68 billion yuan, a year-on-year increase of 27.5%, and a net profit of 680 million yuan, up 65.26% year-on-year [1][8]. - The gross profit margin for the first three quarters of 2025 was 34.08%, down 4.54 percentage points from 2024, while the gross margin for Q3 2025 was 35.56%, showing a year-on-year increase of 0.78 percentage points [10][1]. - The company’s operating cash flow for the first three quarters of 2025 was 277 million yuan, reflecting a year-on-year improvement [13]. Revenue and Profit Forecast - The revenue forecast for 2025-2027 is as follows: 2025E revenue of 14.67 billion yuan, 2026E revenue of 18.23 billion yuan, and 2027E revenue of 22.53 billion yuan, with growth rates of 25.4%, 24.3%, and 23.5% respectively [4][18]. - The net profit forecast for 2025-2027 is projected to be 1.09 billion yuan, 1.44 billion yuan, and 1.84 billion yuan respectively, with growth rates of 89.8%, 31.7%, and 28.3% [4][20]. Valuation Metrics - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 56.6, 43.0, and 33.5 respectively [21][20]. - The company’s return on equity (ROE) is expected to increase from 20.8% in 2025 to 25.6% in 2027 [4][22].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][20]. Core Views - The company is expected to continuously benefit from the development of AI and data centers, with a significant increase in revenue and profit forecasted for 2025-2027 [3][20]. - The company has launched an equity incentive plan, demonstrating confidence in its future development, with specific performance targets set for net profit growth [2][20]. Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 10.68 billion yuan, a year-on-year increase of 27.5%, and a net profit of 680 million yuan, up 65.26% year-on-year [1][8]. - The gross profit margin for the first three quarters of 2025 was 34.08%, down 4.54 percentage points from 2024, while the gross margin for Q3 2025 was 35.56%, showing a year-on-year increase of 0.78 percentage points [10][1]. - The company’s operating cash flow for the first three quarters of 2025 was 277 million yuan, reflecting a year-on-year improvement [13]. Revenue and Profit Forecast - The revenue forecast for 2025-2027 is as follows: 2025E revenue of 14.67 billion yuan, 2026E revenue of 18.23 billion yuan, and 2027E revenue of 22.53 billion yuan, with growth rates of 25.4%, 24.3%, and 23.5% respectively [4][18]. - The projected net profit for 2025-2027 is 1.09 billion yuan, 1.44 billion yuan, and 1.84 billion yuan, with growth rates of 89.8%, 31.7%, and 28.3% respectively [4][20]. Valuation Metrics - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 56.6, 43.0, and 33.5 respectively [21][20]. - The company’s return on equity (ROE) is expected to increase from 20.8% in 2025 to 25.6% in 2027 [4][22].

Group 1 - Ruijie Networks (SZ 301165) announced that on October 21, 2025, it will accept investor research from Baoying Fund Management Co., Ltd. and others, with the company’s board secretary, Yao Bin, addressing investor questions [1] - For the year 2024, Ruijie Networks' revenue composition is 100.0% from the ICT industry [1]

Group 1 - The CPO concept stocks in the A-share market experienced a decline, with several companies seeing significant drops in their stock prices [1] - Companies such as Huilv Ecology, Tianfu Communication, Changfei Fiber, and Shijia Photon fell over 7% [1] - Other companies like Cambridge Technology and Xinyisheng dropped more than 5%, while Huaten Technology, Huagong Technology, Changxin Bochuang, Liante Technology, and Fenghuo Communication fell over 4% [1] Group 2 - Additional companies including Guangxun Technology, Jingwang Electronics, Ruijie Network, Zhongji Xuchuang, and Taicheng Light saw declines of over 3% [1]