Investment Rating - The report initiates coverage with a rating of "Buy" for the company [6]. Core Viewpoints - The company is positioned to benefit significantly from the development of AI, with projected revenues increasing from 139.65 billion to 182.69 billion CNY from 2025 to 2027, and net profits expected to rise from 7.78 billion to 11.79 billion CNY during the same period [4][6]. Summary by Sections 1. Industry Leading Network Solutions Provider - The company focuses on three main product lines: network equipment, network security, and cloud desktop solutions, with network equipment contributing over 70% of revenue [15][21]. - The company emphasizes independent research and development, with over 50% of its workforce dedicated to R&D, and has established eight R&D centers globally [27][28]. - Revenue has shown consistent growth, with a compound annual growth rate (CAGR) of 17.48% from 2017 to 2024, and overseas revenue has significantly increased [36][45]. 2. New Development Opportunities in the Switch Market - The global and Chinese switch markets are steadily growing, with the Chinese market expected to reach 749 billion CNY by 2024 [50][52]. - The rise of white box switches, which offer cost advantages and operational flexibility, is notable, as they allow users to purchase hardware and install software independently [57][58]. - AI is driving the upgrade of data center switches, with significant growth in demand for high-speed ports, particularly 200G and 400G devices [64][67]. 3. Significant Competitive Advantages and Growth Value - The company targets large clients, successfully penetrating the high-end market for operators, and has won significant contracts with major telecom companies [98][100]. - The company maintains a strong focus on product development, achieving a leading market share in several sectors [105]. - The establishment of self-owned production lines ensures delivery capabilities, and the company has built a robust technical service system for rapid response [3][104]. 4. Financial Forecast and Investment Recommendations - The company is projected to achieve revenues of 139.65 billion, 160.84 billion, and 182.69 billion CNY from 2025 to 2027, with net profits of 7.78 billion, 9.70 billion, and 11.79 billion CNY respectively [4][5]. - The report suggests that the company has substantial growth potential due to its deep engagement in the switch product market and active overseas expansion [4].