Core Viewpoint - The report highlights that Ruijie Networks is experiencing significant growth in its data center switch segment, driven by the domestic AI development, with a target price set at 94.99 yuan, reflecting a potential upside of 45% [1][2]. Group 1: Financial Performance - In 2024, the company is expected to achieve a revenue of 116.99 billion yuan, a year-on-year increase of 1.36%, with a gross margin of 38.62% [3]. - The net profit attributable to shareholders for 2024 is projected to be 5.74 billion yuan, representing a year-on-year growth of 43.09% [3]. - For Q1 2025, revenue is anticipated to reach 25.36 billion yuan, a year-on-year increase of 18.14%, with a net profit of 1.07 billion yuan, showing a remarkable year-on-year growth of 4543.67% [3]. Group 2: Market Position and Growth Drivers - The data center switch revenue is expected to reach 39.64 billion yuan in 2024, marking a substantial year-on-year growth of 120%, with the company achieving the top market share in the 200G/400G data center switch segment [4]. - The company has successfully expanded its international market presence, with overseas revenue reaching 18.69 billion yuan in 2024, a year-on-year increase of 52.72% [4]. - The company maintains a competitive edge in the domestic internet market for data center switches, holding the largest market share [4]. Group 3: Cost Management - The company has effectively controlled its expense ratios, leading to an upward adjustment in profit forecasts despite a downward revision in revenue expectations for certain business segments [2][3]. - The sales, management, financial, and R&D expense ratios for 2024 are reported as 15.51%, 5.50%, -0.12%, and 16.12%, respectively, with notable changes in comparison to the previous year [3].
海通国际：给予锐捷网络增持评级，目标价94.99元