This report is read as follows:
The performance was in line with expectations, revenue and profit grew steadily, and Q3 profit improved compared with the previous month. As the leading ICT application provider in China, Ruijie network spin-off and listing is expected to bring value revaluation.
Main points of investment:
Downgrade earnings forecast, maintain target price and increase rating. Taking into account the impact of the epidemic on the downstream demand and bidding of the company, the estimated net profit of homing in 2022-2024 is reduced to 6.94x61max 10.74 million (the previous value is 7.59x1031x1253), corresponding to EPS of 1.19Compare 1.48x1.84. Considering the gradual improvement of the company's cloud network full-link product system, Ruijie network spin-off and listing is imminent, with reference to the comparable company valuation in the same industry. Maintain the target price of 25.88 yuan and increase the rating.
The performance was in line with expectations, revenue and profit grew steadily, and Q3 profit improved compared with the previous month. In the first three quarters, the company achieved revenue of 10.819 billion yuan, year-on-year + 17.71%, net profit of 551 million yuan, year-on-year net profit of 551 million yuan, third quarter income of 4.124 billion yuan, year-on-year + 5.61%, month-on-month + 10.12%, net profit of 239 million yuan, year-on-year + 5.07%, month-on-month + 23.20%, gross profit margin increased 2.27pct, month-on-month increased 2.06pct.
As the leading ICT application provider in China, Ruijie network spin-off and listing is expected to bring value revaluation. Strive to overcome the impact of the epidemic, strengthen the market expansion of the industry and the launch of new products, the company's hard core technical strength and product innovation in the field of independent innovation continue to improve. The product strategy revolves around the application scenarios of various smart solutions, and is based on "rooted in the industry and making innovation in the scene" in the fields of smart network, smart cloud, smart finance, smart communication, smart IoT, smart entertainment, smart community and so on. to provide customers with solutions.
Catalyst: operators and cloud manufacturers have strong demand for white boxes, and Ruijie network has been spun off and listed.
Risk tips: increased competition leads to a decline in gross profit margin, fluctuations in the supply of upstream core components, and lower-than-expected capital spending by cloud manufacturers or operators.