Fiberhome Communications (600498) Interim Review: Communication system needs to release fiber optic cables

Fiberhome Communications (600498) Interim Review: Communication system needs to release fiber optic cables

Event: Beacon Communications released its semi-annual report on August 28, 2019: The company achieved operating income of 119 in the first half of the year.

85 ppm, a ten-year increase of 7.

07%; net profit attributable to mother 4.

28 ppm, a reduction of 8 per year.


The company’s performance was in line with expectations.

Revenue increased slightly, gross margin slightly increased: the company’s revenue increased slightly7.

07% to 119.

8.5 billion yuan.

The company’s gross profit margin decreased by 2 compared with the same period last year.

73pct, resulting in a reduction of eight to net profit.


We believe that the decline in the optical fiber and cable industry’s prosperity and the substantial price of centralized mining are the primary reason for the company’s weakening profitability.

Report intelligence.

The company’s expense ratio remained stable during the period.

Among them, the sales expense ratio and financial expense ratio have improved, respectively, compared with the same period of last year.

36 points and 0.

95 points.

At the same time, the initial stage of 5G construction brought a certain amount of research and development pressure, and the company’s research and development expense ratio was 9 from the same period last year.

43% increased to 9.


The demand for communication systems is released, and fiber optic cables are exhausted: communication systems and fiber optic cables are the company’s two core businesses.

In terms of communication systems, transmission network investment is expected to enter the rising channel in the second half of the year, and the company’s communication system business will gradually increase its 上海夜网论坛 volume.

Report short term, the company 10G rated G.

Metro’s fronthaul equipment passed the acceptance check of Unicom, and the new OLT and ONU product functions continued to be optimized to meet the operator’s network reconstruction needs.

In terms of fiber optic cables, the price of mobile common fiber optic cables in March this year was cut, which brought tremendous pressure to fiber optic cable manufacturers.

Leading companies such as Fire can compress costs through self-produced light rods, and the relative length affected by the distortion.

In the second half of the year, the industry will gradually return to rationality.

In August, China Telecom’s aerial optical cable collection and procurement, the successful bid price of Beacon was about 77 yuan / core km (including tax), about March China Mobile’s bid price has increased by about 14%.

Improved performance of Fire Star Sky and expected growth of data network business: A wholly-owned subsidiary, Fire Star Sky has telecommunications-grade information extraction capabilities and massive PB-level big data analysis and processing capabilities, and has about half of the market share in the network monitoring field.

Since the second half of last year, the demand for network security and big data products has picked up. The company’s penetration rate in downstream areas such as public security, military, government, railways, and power has gradually increased.

According to the report baseline, the net profit realized by the Beacon Star was 1.

92 ppm, a sharp increase of 251 previously.

47%, long-term growth of data network business is expected.

Convertible bond financing supports the company’s future development: the company issues convertible bonds and raises funds33.

The US $ 6.4 billion carries five major areas of network system equipment, optical chips, fiber expansion rods, broadband access equipment, and information security monitoring and early warning systems.

Among them, optical chips and optical rods are important raw materials for communication equipment and optical cables. The company can reduce costs by producing raw materials.

The bearer network equipment, access equipment and information security system are the main sources of profit for the company. After the project is completed, it is estimated that the new sales revenue will be 21 respectively.800 million, 22.

400 million, 9.

5.7 billion.

In terms of bearer networks, the company will complete research on 5G network bearer equipment such as enhanced OTN technology, SPN technology, IP RAN, SDN technology, etc., to accumulate power for 5G; in access network, the company will deploy 25G, 2 * 25G high-speedBroadband access equipment; in terms of information security, the company will improve the comprehensive analysis of massive network data and the ability to analyze and discover network events.

Investment suggestion: The company’s performance is basically flat compared with the same period last year.

With the heavy demand for communication equipment and the exhaustion of fiber optic cables, the company’s second-half results promoted recovery.

We expect the company’s net profit for the year 19-21 to be 9.



160,000 yuan, EPS is 0.



38 yuan, corresponding to PE is 36X / 26X / 21X times, maintaining the “strongly recommended” level.

Risk reminder: The prosperity of fiber optic cables is sluggish, and the gross margin is extended; 5G progress is less than expected.