Ruijie Networks (301165 CH) Initiate at Buy: Riding on robust demand of AI network

研报英文原文证据摘录

Ruijie Networks (301165 CH) Initiate at Buy: Riding on robust demand of AI network

Equities ● Software

23 June 2026

Investment Summary

◆ Ruijie is well positioned to benefit from rising AI-driven network

demand

◆ We expect Ruijie’s revenue and net profit to grow at a CAGR of 25%

and 58%, respectively

◆ Initiate at Buy with a PE-based TP of RMB89.00

Strong AI network demand drives accelerated growth in the switch

market

The demand for computing power will grow significantly, driven by the development and

adoption of AI LLMs, leading to an increasing scale of GPU clusters. Larger compute clusters

require more layers of network structure, boosting the demand for scale-out switches. Besides,

upgrading switch port speed could boost product content value. We expect the share of 800G

and 1.6T products in the data centre switch market to further increase over the next 3-5 years.

The ASP of 800G switches can be 2-3x that of 400G switches, and the ASP of 1.6T switches

can be 4-5x that of 400G switches. Moreover, as the communication rate between cabinets

cannot meet the demand for AI LLM training and inference currently, domestic and overseas

players have launched SuperPOD solutions. Scale-up switches could improve the

communication rate between GPUs within a cabinet by magnitude levels. Given the rising

penetration of SuperPOD solutions, scale-up switches could witness continuous ramp-up.

Hence, we expect data centre switch TAM to reach RMB118bn in 2030e, implying a 28% CAGR

in 2025-30e. As Ruijie is a leading domestic player and has deep relationships with downstream

Internet clients, we expect Ruijie to continue to gain market share.

Exhibit 1. We expect China data centre Exhibit 2. Ruijie continues to gain market

switch market to grow at a CAGR of 28% in share