Suzhou Centec (SH:688702) Huachuang Securities·2026-03-03 07:20Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][7]. Core Insights - The company is expected to benefit significantly from the development of domestic computing power, with accelerated progress in switching chips. The projected revenue for 2025 is CNY 1.151 billion, representing a year-on-year increase of 6.35% [1][7]. - The net profit attributable to the parent company is forecasted to be a loss of CNY 150 million, which is an increase in loss of CNY 82 million compared to the previous year [1][7]. - The company is positioned as a leading player in the domestic commercial switching chip market, with its Arctic series performance comparable to overseas products. It is expected to grow rapidly due to increased demand from data centers driven by the AI wave and the trend of domestic production [7]. Financial Summary - The total revenue for 2025 is estimated at CNY 1,151 million, with a year-on-year growth rate of 6.4% projected for 2026 and 26.3% for 2027 [3][8]. - The net profit attributable to the parent company is expected to improve to CNY 530 million in 2026 and CNY 2.02 billion in 2027, following a loss of CNY 150 million in 2025 [3][8]. - The company's earnings per share (EPS) is projected to be CNY -0.37 in 2025, turning positive at CNY 0.13 in 2026 and CNY 0.49 in 2027 [3][8]. - The company’s total assets are projected to be CNY 2.738 billion in 2025, with a slight increase to CNY 3.518 billion by 2027 [8].