CICC: Maintains Industrial Fulian's "outperform" rating, 4Q25 performance expected to exceed market expectations.

The research report from pointed out that Industrial Fulian is expected to have a net profit attributable to the mother of 12.6-13.2 billion yuan in the fourth quarter of 2025, a year-on-year increase of 56-63%; it is expected that the full-year net profit attributable to the mother in 2025 will be 35.1-35.7 billion yuan, a year-on-year increase of 51-54%. The performance forecast exceeded market expectations, basically in line with our previous expectations. The delivery period of GB300 server has entered the intensive phase, with CSP AI server revenue in the fourth quarter of 2025 increasing by more than 5.5 times year-on-year; high-speed switches achieved a leap in growth, and the performance of precision components steadily improved; the next generation Rubin cabinet was released, with the hope of continuing high-speed growth for 26 years. Currently, the stock price corresponds to a P/E ratio of 15.9 times for 26/27 years. The rating of "outperforming the industry" is maintained. Due to the downward shift in industry valuation center, the target price is lowered by 18% to 77.68 yuan.