Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 40.90, indicating a potential upside of approximately 30% from the current price of RMB 31.45 [3][8]. Core Views - The company has shown strong performance in the first half of 2024, with revenue reaching RMB 5.043 billion, a year-on-year increase of 4.40%, and a net profit attributable to the parent company of RMB 154 million, up 10.08% year-on-year [6]. - The demand for network equipment is recovering, particularly from internet clients, contributing to a revenue increase in this segment [6][7]. - The company is benefiting from the AI computing wave, with significant growth in data center switch sales, which increased by 62% year-on-year in the first half of 2024 [7]. Financial Performance - Revenue projections for 2024 and 2025 are RMB 13.08 billion and RMB 15.59 billion, respectively, reflecting growth rates of 13.3% and 19.2% [5][10]. - The net profit attributable to the parent company is expected to be RMB 510 million in 2024 and RMB 666 million in 2025, with growth rates of 27.1% and 30.5% [5][10]. - The company’s gross margin is projected to stabilize in the second half of 2024, following a decline due to product mix changes and cost-cutting measures from clients [6][7]. Market Position and Trends - The company holds a leading market share in key sectors such as higher education and wholesale industries, and is expanding its international market presence, with overseas revenue growing by 58.1% year-on-year [7]. - The company has successfully launched innovative products tailored to specific customer needs, enhancing its competitive edge in the market [7]. Valuation Metrics - The current price corresponds to a P/E ratio of 35.0 for 2024 and 26.8 for 2025, indicating a favorable valuation compared to industry peers [8][20]. - The report suggests that the company's valuation may be impacted by the overall industry valuation trends, but maintains a positive outlook based on its growth potential [8].
锐捷网络：高速数通交换机收入高增，费用管控成效显著