Suzhou Centec (SH:688702) Great Wall Securities·2024-04-30 11:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [2][8][22]. Core Views - The company achieved a revenue of 1.037 billion yuan in 2023, representing a year-on-year growth of 35.17%. The net profit attributable to the parent company was -19.53 million yuan, an improvement of 33.62% year-on-year [2][3]. - In Q1 2024, the company reported a revenue of 254 million yuan, a decline of 13.61% year-on-year, with a net profit of -6.07 million yuan, down 138.73% year-on-year [2][3]. - The company continues to invest heavily in research and development, with R&D expenses reaching 314 million yuan in 2023, a 19% increase year-on-year, supporting its growth in the cloud computing sector [3][4]. Financial Summary - The company's revenue is projected to grow from 1.407 billion yuan in 2024E to 2.121 billion yuan in 2026E, with corresponding growth rates of 35.6%, 23.8%, and 21.7% respectively [2][12]. - The net profit attributable to the parent company is expected to turn positive in 2024E at 6 million yuan, increasing to 76 million yuan by 2026E [2][12]. - The company's return on equity (ROE) is forecasted to improve from 0.3% in 2024E to 3.1% in 2026E [2][12]. Industry Position - The company is positioned as a leading player in the domestic switch chip market, with a focus on high-end Ethernet switch chips that cater to various applications including cloud computing and SDN [3][4]. - The product matrix includes Ethernet switch chips with capacities ranging from 100Gbps to 2.4Tbps, targeting enterprises, operators, and data centers [4].