Ruijie Networks (301165 CH): Buy: Raise earnings estimates amid AI network demand boom

Research evidence excerpt

Ruijie Networks (301165 CH): Buy: Raise earnings estimates amid AI network demand boom

we see Ruijie well positioned

to benefit from these structural switch volume and pricing tailwinds, and we expect 52-WEEK PRICE (CNY)

robust earnings growth to drive further valuation re-rating. Notably, our 2026-28 net

profit estimates are 8-10% higher than Wind consensus. 140.00

85.50

Remain a key beneficiary of robust AI network demand. We continue to believe 31.00

Ruijie is well positioned to benefit from robust AI network demand and rising capex of 07/25 01/26 07/26

Target price: 129.00 High: 102.00 Low: 42.29 Current: 94.51

Internet companies (see Initiate at Buy, 23 June 2026). The proliferation of LLMs

should exponentially increase AI compute demand, necessitating larger GPU clusters Source: LSEG IBES, HSBC Qianhai Securities estimates

and more complex network topology, accelerating demand for scale-out switches. In

addition, port speed migration will significantly enhance switch ASP. The ASP of Yiran Liu* (Reg. No. S1700520040001)

Head of A-share IT Software Research

800G and 1.6T switch are 1.7-2x and 4-5x of 400G’s, respectively. Moreover, scale- HSBC Qianhai Securities Limited

up switches is critical for intra-cabinet GPU communication, delivering magnitude yiran1.liu@hsbcqh.com.cn

+86 10 5795 2349

latency improvements. With increasing SuperPOD solutions adoption, we expect this

Heng Zhang* (Reg. No. S1700524050001)

segment to generate substantial incremental revenue for Ruijie. Analyst, A-share IT Software Research

HSBC Qianhai Securities Limited

Estimate revisions. We raise our 2026-28 revenue estimates by 11-17%, to factor in heng.zhang@hsbcqh.com.cn

the preliminary 2Q26 result beat and stronger switch industry tailwinds. Given higher +86 10 5795 2384