Fiberhome Communications (600498) Company Comment: Scale Growth Improved, Consolidate Advantages, Expand R & D


Fiberhome Communications (600498) Company Comment: Scale Growth Improved, Consolidate Advantages, Expand R & D

Investment Highlights The company released its 2019 Interim Report, which achieved revenue of 119 during the period.

8.5 billion, an increase of 7 previously.

07%; net profit attributable to shareholders of listed companies4.

28 trillion, minus 8.

43%; the scale of revenue is stable, and changes in product structure have led to pressure on performance.

Revenue for the first half of the year 7.

The increase in 07 was mainly due to the investment scale of the domestic operator market and the improvement of traditional equipment procurement.

This directly caused the overall gross profit margin to decrease from the same period last year2.

73 pp, to 20.

55% has a long history.

According to preliminary estimates, the scale of communication equipment is basically flat, and the proportion of transmission categories has decreased significantly. At the same time, the optical fiber and cable were directly suppressed by the direct price reduction of the operator in the first half of the year.factor.

Although there were two sales expenses, administrative expenses and financial expenses, there were 11 on two occasions.

12%, 11.

66% and 70.

With a 69% growth rate, cost control is very effective, but in general, it still affects the return of the net profit of the mother to decline year by year8.


Facing external pressures and consolidating existing strengths.

In the face of external pressure, the company strengthened its layout and consolidated its strengths: it has achieved breakthroughs in the centralized mining market in multiple places, including winning bids for mobile trench cable centralized mining projects, Guangxi Mobile OTN, and Guangxi Telecommunications Province ‘s dry ROADM projects.Optimize product and regional internal customer structure, and break through large multinational operator customers; in terms of informatization, continue to focus on vertical industry, network security, rail transit, political and legal advantages in market segments, rely on customer accumulation, give play to brand advantages, and try to deploy new industriesMarket; beacon star net profit in the first half of the year1.

92 million, network information security business is steadily advancing.

The existing strengths have been consolidated.

Increase investment in research and development and pave the way for follow-up efforts.

The company’s R & D expenses in the first half of the year11.

9.6 billion, an increase of 13 in ten years.

3%, revenue accounted for 10% is the highest in recent years.

The multi-city 5G pilot work has been completed; the industry competition for the three super optical transmissions has been continuously improved; the ultra-large-capacity optical transmission system experiments have been implemented in China; the 5G bearer, 10G rate G.

Metro fronthaul equipment passed the acceptance test of Unicom; the functional performance of new OLTs, ONUs, etc. was continuously optimized to meet the needs of operator network 上海夜网论坛 reconstruction.

U3LA optical fiber successfully passed telecommunications and China Unicom centralized mining test.

The company has made great efforts in the main channel direction of 5G, optical transmission, 5G fronthaul and fixed network access, cloud computing and new rod fiber cables, and many key breakthroughs made will fully pave the way for the 5G market.

As the leading optical communication affiliate of the Xinke Group, it is expected to cooperate with wireless services to achieve leapfrogging in the 5G era.

The Chinese Academy of Posts and the Chinese Academy of Sciences merged to form the Xinke Group, and merged a complete and powerful optical communications industry chain, including wireless system equipment and system integration capabilities, fully complementary in business, and achieved a new leader 深圳spa会所 in domestic main equipment.

The start of 5G brings rare development potential to the wireless market, and the local market will provide significant support.

Based on its strong optical communications capabilities, Fiberhome actively implements the “cloud-network integration” transformation strategy. It has developed steadily in areas such as cloud computing, big data, information security, and the Internet of Things.

As the leader of Xinke Group’s main equipment, it is expected to cooperate with the wireless business and even play a role in the overall plan, helping the group to achieve substantial improvements in scale and industrial advantages in the local 5G market competition.

Profit forecast and estimation: We expect the company to achieve a net profit of 10 from 2019 to 2021.

12 billion, 12.

1.1 billion and 14.

780,000 yuan, corresponding EPS is 0.
87, 1.
04 and 1.

26 yuan.

Based on the company’s leadership and industry development potential, the company will be given a price-earnings ratio of 35 times in 2020, with a target city size of US $ 42.4 billion and a BUY rating.

Risk alert events: risk of poor operator investment, less than expected risk of overseas expansion, and technical and competitive risks of data network related services