Star-net(SZ:002396) Minsheng Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommended" rating for the company [9]. Core Views - The company is experiencing stable revenue but is awaiting a recovery in demand, particularly from the downstream market [2][25]. - The company has increased its investment in management and R&D, with R&D personnel accounting for 50.92% of the workforce [2]. - The company is focusing on the construction of intelligent computing center networks and has launched the AI-FlexiForce solution, which offers various unique advantages [9]. Revenue and Profitability - In 2023, the company achieved a revenue of 15.908 billion yuan, a year-on-year growth of 1.06%, while the net profit attributable to shareholders was 425 million yuan, a decline of 26.36% [7]. - The gross profit margin for the company was 36.26%, a slight decrease of 0.32 percentage points year-on-year [2]. - The company forecasts revenues of 20.521 billion yuan in 2024, with a growth rate of 29.0% [4]. Market Position - The company ranks third in the Chinese switch market and first in the local computing cloud terminal market [3]. - It has maintained its leading position in the switch market and is pushing for the construction of all-optical networks [8]. Financial Projections - The company expects net profits of 646 million yuan in 2024, 986 million yuan in 2025, and 1.186 billion yuan in 2026, with corresponding PE multiples of 15, 10, and 8 [9]. - The report projects a net profit growth rate of 52.0% in 2024 and 52.6% in 2025 [4][19].