Star-net(SZ:002396) Zheng Quan Zhi Xing·2025-05-01 07:01Core Viewpoint - StarNet Ruijie (002396) reported significant growth in Q1 2025, with a net profit increase of 264.63% year-on-year, driven by strong demand in data center switches and improved operational efficiency [2][4]. Financial Performance - For Q1 2025, the company achieved operating revenue of 3.485 billion yuan, a year-on-year increase of 11.02% - The net profit attributable to shareholders was 42 million yuan, reflecting a year-on-year growth of 264.63% - The net profit excluding non-recurring items reached 30 million yuan, with an astonishing year-on-year increase of 8,829.05% - The gross profit margin for Q1 was 66.51%, up by 1.27% year-on-year, while the expense ratios for sales, management, and R&D were 11.97%, 5.99%, and 14.41%, showing changes of -3.6 percentage points, +0.02 percentage points, and -2.45 percentage points respectively [2][3]. Business Strategy and Development - The company is enhancing its ICT and AI layout, actively expanding into sectors such as trusted computing, visual networking, and vehicle networking - The subsidiary, Ascend Information, is innovating products through "trusted computing + AI" to capture market share in key industries like finance, with successful bids for clients such as China Construction Bank - StarNet Vision, another subsidiary, is focusing on building AI capabilities and researching cutting-edge technologies in the metaverse space - In the optical communication sector, the company has developed low-power 400G/800G LPO optical modules to meet supercomputing center demands - The vehicle networking segment is advancing with both ODM and EMS businesses, strengthening its presence in North America while expanding into over 20 countries across Europe, Africa, Asia, and South America [3][4]. Investment Outlook - As a leader in ICT infrastructure, the company is well-positioned in the data center network and optical communication sectors, with AI application solutions providing growth opportunities - The company is expected to benefit from the ongoing construction of AI computing power, the expansion of trusted computing, and breakthroughs in international markets - Forecasted net profits for 2025, 2026, and 2027 are 500 million yuan, 580 million yuan, and 630 million yuan respectively, with corresponding price-to-earnings ratios of 23, 19, and 18 times [4].