Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The report highlights a significant recovery in performance with a year-on-year revenue increase of 4.40% to 5.043 billion yuan in H1 2024, and a net profit increase of 10.08% to 154 million yuan [5] - The demand for high-speed data center switches is driving both volume and price increases, with expected annual revenue approaching 2.3 billion yuan [5] - The company maintains a strong market position in the internet sector, ranking second in market share for data center switches in China as of Q1 2024 [5] Financial Performance Summary - H1 2024 revenue was 5.043 billion yuan, with a net profit of 154 million yuan, and a significant Q2 performance showing a revenue of 2.897 billion yuan, up 34.95% quarter-on-quarter [5] - The revenue from network equipment reached 3.984 billion yuan, with a gross margin of 37.29%, while high-speed data center switch products generated 1.685 billion yuan, a 62% increase year-on-year [5] - The company expects revenues of 13.150 billion yuan, 15.876 billion yuan, and 18.901 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 521 million yuan, 657 million yuan, and 812 million yuan [6][10] Market Position and Competitive Landscape - The company has a strong presence in the internet and telecommunications sectors, with significant growth in demand driven by AI [5] - The company ranks second in the Chinese internet industry for data center switch market share and third in both Ethernet and data center switch markets [5] - The report indicates that the company is well-positioned to capitalize on the growing demand for intelligent computing center network solutions [5] Valuation and Investment Recommendation - The report suggests a price-to-earnings (PE) ratio of 35-45 for 2024, with a corresponding fair value range of 32.09 yuan to 41.25 yuan [6] - The investment recommendation remains "Outperform the Market" based on the expected performance relative to the benchmark index [6]
锐捷网络：公司半年报点评：数据中心需求高增，盈利迎显著拐点