20 Mar

Fire Communication (600498): Actively preparing for 5G pending release of optical communication demand will welcome new opportunities

Fire Communication (600498): Actively preparing for 5G pending release of optical communication demand will welcome new opportunities

Event: The company announced that its operating income for the first three quarters of 2019 was 177.

75 ppm, a ten-year increase2.

32%; net profit attributable to shareholders of listed companies6.

19 ppm, a decrease of 1 per year.


  The performance is basically in line with expectations. It is expected that 5G construction will release optical communication equipment demand. The company’s revenue growth in the first three quarters of 2019.

32%, quarterly growth in revenue in Q1 2019 is 14%.

9%, 2 in the second quarter.

28%, down 6 in the third quarter.

28%, the company ‘s revenue growth forecast is expected to be mainly 杭州桑拿网 affected by the optical fiber and cable business. In 2019, the operator ‘s optical fiber cable collection and procurement prices will change, which is expected to weigh on revenue and profit growth.

In addition, as the 5G construction this year is dominated by NSA networking, the demand for 5G bearer network equipment can be fully released.

In the future, the scale construction of SA network through 5G will drive the demand for optical transmission equipment and fiber optic cable business. The company’s optical communication business is expected to fully benefit and is worth looking forward to.

  The company’s net profit for the first three quarters of 20196.

19 ppm, a decrease of 1 per year.

86%, but Q3 net profit in the single quarter was 1.

92 ppm, an increase of 16 in ten years.

88%, distorting the trend of Q2 transition.

  Gross profit margin decreased, expense ratio decreased, operating efficiency improved The company’s gross profit margin for the first three quarters of 2019 was 21.

93%, down by 1 every year.

The 32 averages are expected to be caused by the decline in the collection and purchase prices of fiber optic cables, but the gross profit margin of Q3 is 24.

78%, an increase of 1 per year.

6 averages, a significant increase of 7 from the previous quarter.

06 profit, reflecting the improvement of the company’s Q3 profitability.

  Three expenses in the first three quarters of 20198.

34%, down by 1 every year.

3 units, of which: sales expense ratio 6.

38%, about 1 unit per year, and the management expense rate drops by 0 per year.

For 2 units, the company’s cost reduction and efficiency improvement effects have appeared; R & D costs have been reset by 10.

93%, a year to raise 0.

There are 83 single 5G and ICT core technologies that reflect the company’s increased research and development efforts, and the company’s product competitiveness will continue to increase in the future.

  ICT veteran powerhouse, “cloud-network integration” strategic transition is actively preparing for 5G beacon deployment in optical communications, strategic transformation of “cloud-network integration”, focusing on resources, transforming the value chain of 5G, cloud computing, big data, rod fiber and cableFocusing on breakthroughs in 5G bearers, telecommunication cloud platforms, optical rods and special optical fibers, marine networks, and high-end switches such as industry-level big data processing and analysis platforms, the company continues to cultivate and innovate in the network field.The Internet of Things and other fields have developed steadily.

  Fiberhome has started research on 5G bearer network technology earlier, and has obtained a series of results, including the release of FitHaul’s 5G bearer network solution and the self-developed 1.

5G solutions such as 2T single-slot equipment cover key areas such as SPN, WDM-PON, OTN, SDN, and network operation and maintenance.

  Investment suggestion: The continued high growth of traffic and the construction of 5G will drive the prosperity of the optical network. The company will continue to increase its market share through technological innovation and rapid overseas expansion.

At the same time, the Group’s restructuring and restructuring of China ICT Company is also expected to make up for the shortcomings of the beacon on the wireless side, and its comprehensive strength will be further improved.

Considering that the fiber optic cable car business is affected by the decline in prices, we have revised the company’s 2019-2021 profit forecast from the original 10.

1 billion, 13.

300 million and 17.1 ‰ is adjusted downward to 9.

4 billion, 12.

600 million and 16.

6 ppm, corresponding to a 19-year PE of 33x, and maintains a “Buy” rating.

  Risk warning: 5G advances less than expected, and increased competition leads to lower product prices and other risks.