Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 98.13 [2]. Core Views - The report highlights that the demand for data centers is accelerating, leading to an upward revision of the company's performance for the year. The growth in revenue and net profit is primarily driven by the demand from internet AI data centers [6][10]. - The company is positioned as a leading supplier of data center switches in the internet sector, benefiting from increased capital expenditures from clients and improved operational efficiency [6][9]. Financial Performance Summary - For the first half of 2025, the company achieved revenue of RMB 6.649 billion and a net profit of RMB 0.452 billion, representing year-on-year increases of 32% and 194% respectively [6]. - The revenue forecast for the upcoming years is as follows: - 2024: RMB 11.699 billion - 2025E: RMB 15.291 billion (+30.70%) - 2026E: RMB 18.797 billion (+22.93%) - 2027E: RMB 22.121 billion (+17.69%) [5][22]. - The net profit attributable to the parent company is projected to grow significantly: - 2024: RMB 0.574 billion - 2025E: RMB 1.250 billion (+117.82%) - 2026E: RMB 1.815 billion (+45.18%) - 2027E: RMB 2.367 billion (+30.37%) [5][21]. Segment Performance - In the first half of 2025, the company's network equipment products generated revenue of RMB 5.841 billion, a year-on-year increase of 46.6%, with data center switches contributing RMB 3.539 billion, up 110% [7]. - The company has expanded its overseas market presence, achieving revenue of RMB 1.145 billion from international markets, a year-on-year increase of 48.5% [7]. Margin and Cost Efficiency - The overall gross margin for the first half of 2025 was 33.19%, a decrease of 2.79 percentage points year-on-year, primarily due to increased competition and customer cost-cutting demands [8]. - The company has improved its expense ratios significantly, with sales, management, and R&D expense ratios at 10.23%, 4.65%, and 11.53% respectively, all showing year-on-year reductions [8]. Market Position and Outlook - The company is expected to benefit from a new round of bidding from internet companies, with major players like ByteDance and Alibaba projected to increase their capital expenditures significantly in 2025 [9]. - The company holds a 19.2% market share in the domestic data center switch market, ranking third, and leads in the 200G and 400G segments with a 38.1% market share [9]. Profit Forecast and Valuation - The profit forecast for the company has been revised upwards, with net profit estimates for 2025-2027 adjusted to RMB 12.50 billion, RMB 18.15 billion, and RMB 23.67 billion respectively, reflecting substantial growth [10][21]. - The target price of RMB 98.13 corresponds to a PE ratio of 43x for 2026, indicating a favorable valuation compared to peers [10][23].
锐捷网络（301165）：数据中心需求加速释放，上调全年业绩