Suzhou Centec (688702) Soochow Securities·2024-09-02 12:10Investment Rating - The investment rating for the company is maintained at "Add" [1] Core Views - The company reported a revenue of 530 million yuan in the first half of 2024, a year-on-year decrease of 17%, with a net profit attributable to shareholders of -60 million yuan [2] - Revenue in Q2 2024 was 280 million yuan, down 20% year-on-year, but showed a sequential growth of 9.3% from Q1 2024 [2] - The gross margin improved to 37.5%, up 6.0 percentage points year-on-year, with Ethernet switch chips accounting for 80.6% of total revenue [2] - The company increased its R&D investment to 220 million yuan in the first half of 2024, a 73.9% increase year-on-year, with an R&D expense ratio of 42.1% [2] - The company is focusing on high-end chip development, with flagship chips achieving maximum port speeds of 800G and capacities of 12.8T and 25.6T [2] - Revenue forecasts for 2024-2026 have been adjusted to 1.17 billion, 1.5 billion, and 2.12 billion yuan respectively, with net profit forecasts adjusted to -60 million, 20 million, and 110 million yuan [2] Financial Summary - Total revenue for 2022 was 767.5 million yuan, with a year-on-year growth of 67.36% [1] - The company expects total revenue for 2023 to be 1.04 billion yuan, with a year-on-year growth of 35.17% [1] - The projected net profit for 2024 is -64.51 million yuan, reflecting a significant decline compared to previous years [1] - The latest diluted EPS for 2024 is projected at -0.16 yuan per share, with a P/S ratio of 12.4 for 2024 [1][4]