Investment Rating - The report assigns a "Buy" rating to the company, citing its strong position in the ICT sector and its alignment with AI development trends [1][3][4] Core Business and Market Position - The company is a leading domestic ICT manufacturer, focusing on network equipment, network security, and cloud desktop solutions [1][4] - It is one of the few domestic companies with the capability to develop high-end data center switches, having delivered 200G/400G switches to major internet companies [1][4] - The company has over 20,000 channel partners and operates in more than 80 countries and regions [4][16] AI and High-Speed Ethernet Switches - AI development is driving demand for high-speed Ethernet switches, with 400G and 800G switches expected to dominate the market [4][7] - The company is actively developing high-speed Ethernet switches, including 200G/400G data center switches, and has collaborated with leading internet companies on white-box switches [4][7] - The global AI backend network is expected to see increased adoption of 400G+ switches, with 800G switches becoming mainstream by 2025 [4][7] Financial Performance and Projections - The company's revenue is projected to grow from 12.245 billion yuan in 2024 to 16.087 billion yuan in 2026, with a CAGR of 16.41% [4][9] - Net profit is expected to increase from 423 million yuan in 2024 to 637 million yuan in 2026, with a CAGR of 16.41% [4][9] - The company's EPS is forecasted to grow from 0.74 yuan in 2024 to 1.12 yuan in 2026 [4][9] Market Trends and Industry Outlook - The global switch market is projected to grow from 39.506 billion USD in 2023 to 41.644 billion USD in 2024, driven by digital transformation and AI trends [30] - The domestic switch market is expected to grow from 68.5 billion yuan in 2023 to 74.9 billion yuan in 2024, with a CAGR of 9.34% [30] - Cloud computing investments are increasing globally, with the market expected to surpass 1 trillion USD by 2026, driving demand for switches [32][34] Competitive Landscape - The company ranks third in the domestic Ethernet switch market and third in the data center switch market [68] - It has a strong presence in the internet sector, with its market share in Ethernet switches for the internet industry growing from 10.72% in 2018 to 29.45% in 2022 [63] - The company has secured significant contracts with major operators, including China Mobile and China Telecom, for switch procurement [65][66] Technological Innovation - The company has developed AI-Fabric network solutions, supporting up to 32,768 400G ports for large-scale GPU clusters [60] - It has pioneered NPO and CPO switch technologies, reducing power consumption by over 50% compared to traditional pluggable solutions [60][61] - The company is a leader in Ethernet all-optical network solutions, targeting education, healthcare, and industrial applications [61] Customer and Market Strategy - The company employs a hybrid sales model, with 61.39% of revenue from distribution channels and 38.61% from direct sales to large clients like operators and internet giants [62][63] - It has a strong service network, with over 100 domestic service centers and dozens of overseas service points [63] - The company has consistently won bids for switch procurement from major operators, including China Mobile and China Telecom [65][66]
锐捷网络：国产ICT设备创新先锋