Fiberhome Communications (600498): First-quarter results exceeded expectations. Fiberhome ushered in investment inflection point
Highlights of the report Event description On April 30, Fiberhome Communications released the 2019 first quarter report, and the company achieved revenue of 48 in the first quarter.
810,000 yuan, an increase of 14 in ten years.
90%; net profit attributable to mother 1.
67 ppm, an increase of 19 in ten years.
During the comment period of the event, the cost was reduced, the performance was thickened, and the increase in R & D investment underscored the determination to prepare for 5G: the company’s comprehensive gross profit margin in Q1 19 was 24.
68%, Q1 of the earlier 18 years3.
In terms of period expenses, the sales expense ratio is reduced by 2.
20pct, the management expense rate is reduced by 0 every year.
23pct, the R & D expense rate is reduced by 0 every year.
56pct, maximize the financial expense ratio to 0.
56 points, the overall expense ratio decreased by 2.
43pct, and the R & D expenses in the first quarter increased by 9.
73%, highlighting the company’s determination to actively prepare for 5G.
In addition, due to the changes in the performance of Chengdu Datang Cable Co., Ltd. and some non-wholly owned subsidiaries of fiber optic cables, the profit and loss of minority shareholders was changed to 111 in Q1, 18 years earlier.
Performance growth exceeded expectations, and diversified operations hedged the impact of fiber optic cables: Affected by changes in the domestic fiber optic cable collection and procurement prices and changes in the bidding scale of domestic operators, Fiberhome ‘s Q1 revenue and gross profit margin were only reduced to varying degrees from Q1 18,Overall performance increased by 19.
71%, exceeding market expectations.
We believe that the company’s outstanding performance in Q1 was mainly due to the contribution of transmission system equipment, overseas business, and the beacon star.
In overseas markets, the company relies on the general contracting model of system equipment and cable products to tap new potentials and continue to optimize the regional layout structure to achieve continuous growth in effective contracts. Contributions from overseas markets may be partially contributed. Some revenue may be recognized in Q1.
In addition, the impact of changes in customers of downstream institutions is gradually eliminated, and the fiery 19th year is expected to continue high performance growth and increase first-quarter results.
5G commercial transmission comes first, and transmission network bidding is about to start: Affected by the operator group’s decision on 5G transmission and the various influences of the 5G transmission scheme itself, the current market’s attention to 5G transmission construction is lower than the wireless side. We insist that 5GFor commercial use, the construction of the transmission network is bound to advance.
At present, the enthusiasm for 5G construction inside and 夜来香体验网 outside the industry is unprecedentedly high. Many provinces and cities are scrambling to plan for 5G layout. Some cities have started to build 5G on a large scale.
The 5G base stations that have already been built are really commercially available and still need to wait for the 5G transmission equipment to be in place.
The domestic 5G transmission network bidding is about to start. As a domestic optical communication leader, Fiberhome is trying to take the lead.
Investment suggestion: Due to the continuous expansion of domestic optical fiber and cable demand, Beacon has underperformed the market since the early days.
With the full acceleration of 5G construction, the company’s convertible bond solution has been implemented, and the domestic transmission network investment is about to start. Fibonacci is expected to usher in an investment inflection point.
We expect the company to have a net profit of 10-21 in 19-21.
09 billion, 12.
6.1 billion, 16.
3.9 billion, 19-21 year performance growth rate of 20%, 25%, 30%, corresponding to PE is 34 times, 27 times, 21 times, the key recommendation, maintain the “Buy” rating.
Risk Warning: 1.
5G commercial use is less than expected; 2.
The construction of 5G transmission network was less than expected.