Fire Communication (600498): The performance is improving and the leading edge of R & D is maintained
Key Investment Events: In 2018, Fiberhome Communications achieved operating income of 242.
3.5 billion, the previous growth rate was 15.
10%, net profit attributable to mother is 8.
44 megabytes, with a growth rate of 2 a year.
29%, achieving a basic profit of 0.
Operating income has grown steadily, and net profit attributable to mothers has made steady progress: communications system equipment and cable products accounted for 61 of total revenue, respectively.
77% and 26.
65%, including sales of communications system equipment sales of 149.
70 ppm, an increase of 13 in ten years.
45%; optical fiber and cable sales revenue 64.
580,000 yuan, an increase of 18 in ten years.
35%; data network products achieve sales revenue of 25.
32 ppm, an increase of 19 years.
The net profit of returning to mothers has maintained a stable and progressive trend.
The speed of R & D expenditure continues to increase, and the core competitive advantage continues: R & D expenditure in 2018 was 2深圳丝袜会所5.
40 ppm, an increase of 18 over the same period last year.
76%, Fiberhome Communications spends 10% of its annual revenue on research and development of unique core technology of the enterprise, with more than 35% of product and solution research and development personnel, and the conversion rate of scientific research results remains above 90%. Fiberhome Communications continues to maintain high-end core technologies.In terms of research and development efforts, we continue to optimize the layout of products and technologies, promote the initial integration of the industrial chain, and ensure that the competitiveness of our products continues to increase.
5G is gradually approaching, and application scenarios are landing to stimulate more demand: 5G new application scenarios put forward new requirements on transmission network bandwidth, delay, reliability and other technical indicators. Therefore, the 5G era requires bearer networks, optical communication equipment, and fiberNew requirements are created by network infrastructure such as fiber optic cables.
The forward-looking research of Fiberhome Communication Technology enables the core competitiveness to be maintained and the solution leading. At present, Fiberhome’s 5G solutions have covered key areas such as SPN, WDM-PON, OTN, SDN, and network operation and maintenance.
Earnings forecast and investment grade: We continue to be optimistic about the Fiberhome communications business, and we estimate that the operating income for 2019-2021 will be 299.
23 ppm, 372.
1.7 billion and 467.
00 ppm, the net profit attributable to mothers is 10.
4 billion, 13.
32 trillion and 17.
1.5 billion, EPS is 0.
89 yuan, 1.
14 yuan and 1.
47 yuan, the corresponding evaluation is 34/27 / 21X, we give a “buy” rating.
Risk warning: 5G deployment progress is less than expected; network construction progress is less than expected; product development progress is less than expected.