Starnet Ruijie (002396) Covers for the First Time: Enterprise Network Business Performance Bright White Box Switch Leader Looking Ahead

Starnet Ruijie (002396) Covers for the First Time: Enterprise Network Business Performance Bright White Box Switch Leader Looking Ahead

Starnet Ruijie was established in November 1996. In June 2010, the company first listed 44 million shares on the A-share market through the Shenzhen Stock Exchange. It is one of the leading enterprises in Fujian’s state-owned mixed capital reform.

The company provides ICT application solutions for mainstream downstream customers and information solutions for enterprise customers. It is a leading optical network equipment provider in the domestic industry.

Thanks to the demand for optical equipment during the gradual landing of domestic 5G construction, the company’s first half of 2019 performance forecast has achieved profit1.

53-1.

64 ppm, an increase of 30-40% per year.

Key points of investment: stable operation, continuous increase in revenue and profits since listing: Looking at the company’s operating conditions since listing, the revenue has been 19 in 2010.

97 million increased to 91 in 2018.

32 million, CAGR reached 20.

93%; net profit attributable to mother from 1.

3.9 billion to 5.

8.1 billion, with a CAGR of 19.

58%.

The above data comprehensively reflects the company’s good business development and operation management, but also reflects the company’s continued financial stability and profitability.

Forging the domestic white-box switch leader: Cloud computing focuses on software rather than hardware. Server white-branding can quickly reduce costs without reducing performance. Therefore, cloud computing and new data centers bring demand and applications for server white-branding.Possibility.

With the application of SDN (Software-Defined Network), SD-WAN (Wide Area Software-Defined Network) and other technologies in data centers, white box switches have gradually entered the vision of cloud computing giants, and the industry pattern will have the possibility of disruption.

Taking advantage of the “5G” wind, sharing optical communications + edge computing feasts with industry customers: Traffic surges, 5G gradually brings explosive growth in traffic, and higher 深圳桑拿网 and simpler network solutions are imperative.

Ruijie Networks has been deeply involved in the Internet industry for several years. Currently, it has served more than 300 companies and companies in depth business scenarios. It has launched solutions and implemented large-scale applications for Internet data centers, office networks, commercial Wi-Fi, cloud office, and new retail to win customers.Recognition and trust have precipitated a large number of quality customers.

Profit forecast and investment suggestions: It is estimated that the company will achieve net profit in 2019, 2020 and 2021 respectively.

26 billion, 9.

44 billion, 12.

2.7 billion, the corresponding EPS is 1.

24 yuan, 1.

62 yuan, 2.

10 yuan; corresponding to the current expected PE is 20 times, 15 times, 12 times; for the first time to 杭州桑拿 give the “overweight” rating.

Risk factors: 5G construction fails to meet expectations, and Sino-US trade frictions intensify.

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