Suzhou Centec (SH:688702) KAIYUAN SECURITIES·2025-09-02 03:19Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is positioned to benefit from the increasing demand for high-speed interconnects driven by AI applications, as it is a leading Ethernet switch chip designer in China [4][5] - The company has joined the OISA ecosystem to support the development of ultra-node computing, enhancing its market presence and technological capabilities [4] - Revenue forecasts for the company are projected to be 1.369 billion, 1.886 billion, and 2.390 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding price-to-sales ratios of 37.7, 27.4, and 21.6 times [4][7] Financial Summary - The company's revenue for 2023 was 1,037 million yuan, with a year-on-year growth of 35.2%. The projected revenues for 2024 and 2025 are 1,082 million and 1,369 million yuan respectively, indicating a growth rate of 4.3% and 26.6% [7][9] - The net profit attributable to the parent company is expected to improve from -77 million yuan in 2025 to 119 million yuan in 2027, reflecting a significant turnaround in profitability [7][9] - The gross margin is projected to stabilize around 40% from 2025 to 2027, indicating a consistent profitability outlook [7][9] Product Development and Market Position - The company has launched high-end chips with switching capacities ranging from 100 Gbps to 25.6 Tbps, which are now in the market promotion and application phase [5] - The company maintains a strong focus on R&D, with R&D expenses reaching 239 million yuan in the first half of 2025, a year-on-year increase of 6.76% [6] - The company is actively participating in industry ecosystem development, being a member of several open virtualization alliances and committees, which positions it well within the industry [6]