Suzhou Centec (SH:688702) SINOLINK SECURITIES·2024-05-09 08:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [21][22]. Core Insights - In 2023, the company achieved revenue of 1.037 billion RMB, a year-on-year increase of 35.17%, while narrowing its net loss to 20 million RMB from 29 million RMB in the previous year [21][22]. - The revenue distribution showed a trend of higher earnings in the first half of the year, followed by a decline in the second half, attributed to increased purchasing by downstream customers due to supply uncertainties [21]. - The company is in a high R&D investment phase, with R&D expenses reaching 314 million RMB in 2023, accounting for 30.28% of revenue, aimed at product iteration and upgrades [21]. Summary by Sections Financial Performance - 2023 revenue was 1.037 billion RMB, with a growth rate of 35.17% compared to 2022 [7]. - The net profit for 2023 was -20 million RMB, a reduction in loss of 33.62% from the previous year [7]. - Q4 2023 revenue was 160 million RMB, down 25.45% year-on-year and 31.55% quarter-on-quarter, with a net loss of 63 million RMB [21]. Revenue Forecast - Expected revenues for 2024, 2025, and 2026 are projected at 1.372 billion RMB, 1.779 billion RMB, and 2.288 billion RMB respectively [21]. - The company anticipates a gradual improvement in profitability, with net profits forecasted at 4 million RMB in 2024, 27 million RMB in 2025, and 56 million RMB in 2026 [21]. R&D and Product Development - The company continues to focus on high R&D investments, with plans to deliver new products for large-scale data centers and cloud services by the end of 2023 [21]. - The new products are expected to support a maximum port speed of 800G, indicating a commitment to enhancing product capabilities [21].