Suzhou Centec (SH:688702) Western Securities·2025-09-03 06:50Investment Rating - The investment rating for the company is "Buy" [5][10]. Core Views - The company is focused on high-end switch chip products, targeting large-scale data centers and cloud service demands, with flagship chips achieving a maximum port rate of 800G and switching capacities of 12.8Tbps and 25.6Tbps [2]. - The company has shown a significant improvement in its financial performance, with a narrowed loss in net profit and an increase in gross margin, indicating effective cost management and operational efficiency [1][2]. - The ongoing expansion of AI data centers is expected to create new growth opportunities for the company's network communication products [2]. Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 508 million yuan, a year-over-year decrease of 5%, while the net profit attributable to the parent company was a loss of 24 million yuan, which is a 58% reduction in loss compared to the previous year [1]. - For Q2 2025, the company reported operating revenue of 285 million yuan, a year-over-year increase of 28%, with a net profit loss of 8 million yuan, reflecting an 83% reduction in loss year-over-year [1]. - The gross margin for the first half of 2025 was 46.70%, an increase of 9.24 percentage points year-over-year, while the net margin was -4.66%, a decrease in loss of 6.03 percentage points year-over-year [1]. Revenue and Profit Forecast - The projected operating revenues for 2025 to 2027 are 1.35 billion yuan, 1.78 billion yuan, and 2.20 billion yuan, representing year-over-year growth rates of 25.1%, 31.3%, and 23.6% respectively [2][3]. - The forecasted net profit attributable to the parent company for the same period is expected to improve significantly, with estimates of -24 million yuan in 2025, 60 million yuan in 2026, and 131 million yuan in 2027 [3].