Suzhou Centec (SH:688702) Soochow Securities·2025-08-29 02:04Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company has shown significant improvement in Q2 performance, with revenue reaching 280 million yuan, a year-on-year increase of 2.5% and a quarter-on-quarter increase of 27.8%. The net profit attributable to the parent company was a loss of 10 million yuan, which represents a year-on-year reduction in loss of 83.3% and a quarter-on-quarter reduction in loss of 44.1% [7] - The gross margin for the first half of 2025 increased by 9.2 percentage points to 46.7%, with Q2 gross margin reaching 48.8%, up 4.7 percentage points quarter-on-quarter, primarily due to supply chain and product structure optimization [7] - The company is successfully introducing high-end chip clients, enhancing its competitiveness. Its product line covers mid to high-end products, including switching capacities from 100Gbps to 25.6Tbps and port speeds from 100M to 800G, catering to various application fields [7] - The company is increasing its R&D investment, which reached 240 million yuan in the first half of 2025, a year-on-year increase of 6.8%, with an R&D expense ratio of 47.1% [7] - The company is expected to benefit significantly from the domestic computing power wave, with long-term growth potential as its high R&D investment is likely to convert into orders and market share [7] Financial Forecasts - The company's total revenue is projected to reach 1,245 million yuan in 2025, with a year-on-year growth of 15.04% [8] - The net profit attributable to the parent company is expected to improve from a loss of 170 million yuan in 2025 to a profit of 138.36 million yuan in 2027 [8] - The earnings per share (EPS) is forecasted to be -0.04 yuan in 2025, turning positive at 0.08 yuan in 2026 and 0.34 yuan in 2027 [8]