Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 58.47 CNY, indicating a potential upside in the next six months [4]. Core Insights - The company reported a revenue of 824 million CNY for the first half of 2024, a year-on-year decrease of 17.00%, while the net profit attributable to the parent company was 76.31 million CNY, down 15.69% year-on-year [1][2]. - In Q2 2024, the company achieved a net profit of 42.12 million CNY, marking a year-on-year increase of 19.44% and a quarter-on-quarter increase of 23.19% [3]. - The company is focusing on expanding its high-end data center switch product line, which is expected to drive future growth, particularly with the increasing demand from domestic clients [3]. Financial Performance Summary - For the first half of 2024, the company's switch products generated revenue of 644 million CNY, down 20.33% year-on-year, while router and wireless products saw a revenue increase of 57.16% to 158 million CNY [2]. - The gross margin for Q2 2024 was 18.74%, an increase of 2.58 percentage points year-on-year, with the switch products achieving a gross margin of 17.32% [3]. - The company’s R&D expenses increased by 29.20% year-on-year to 62.89 million CNY, reflecting its commitment to developing high-end network equipment [3]. Earnings Forecast and Valuation - The forecast for net profit attributable to the parent company for 2024-2026 has been adjusted to 150.45 million CNY, 218.24 million CNY, and 287.79 million CNY respectively, with corresponding P/E ratios of 26.95, 18.58, and 14.09 [3][6]. - The company is expected to benefit from the domestic shift towards local manufacturing and the increasing demand for high-quality network equipment [3].
菲菱科思：Q2利润改善，向中高端数据中心交换机持续拓展，大客户放量推动高增可期