Fiberhome Communications (600498) 2019 Interim Report Review: Revenue Maintains Steady Growth and 5G Products Proactively Advance

Fiberhome Communications (600498) 2019 Interim Report Review: Revenue Maintains Steady Growth and 5G Products Proactively Advance

The revenue in the first half of the year maintained a steady growth, and the profit was slightly lower 佛山桑拿网 than market expectations.

85 ppm, a ten-year increase of 7.

07%, achieving net profit attributable to mother 4.

28 ppm, with a ten-year average of 8.

43%, deducting non-attributed net profit4.

16 ppm, a ten-year average of 8.

67%, the performance is slightly lower than market expectations, it is also the first time since 2014 that a period of transition in net profit has occurred.

The company’s performance is mainly affected by the operating pressure of operators. The scale of investment in traditional markets and the demand for some traditional products have improved.

Actively lay out the 5G market, and traditional products have made breakthroughs in the first half of the year. The company has completed 5G pilot work in multiple cities. In terms of bearing capacity, 10G rate G

Metro fronthaul equipment passed the acceptance check of Unicom.

The functional performance of the new OLT, ONU, etc. is 北京夜网 continuously optimized to meet the restructuring needs of operators, and is oriented towards SDNFV. In terms of centralized mining, the mobile waveguide optical cable is collected with the highest share, breaking through the Guangxi Mobile OTN project, and winning the Guangxi Telecommunications Provincial ROADMproject.

The decrease in gross profit margin and net profit margin shifted slightly, and cost control achieved certain effects.

In the first half of 2019, the company’s gross profit margin was extended by Tier 2.

73pct to 20.

55%, a short net interest rate.

78 points to 3.

69%.

The company strengthened cost control, sales expense ratio and financial expense ratio improved significantly.

Accounts receivable increased slightly with the scale of revenue, and inventory remained at a high level. Telecommunications industry operators’ extended payment cycle is a common attribute of the industry.

In the first half of the year, the company’s accounts receivable and bills were 95.

23 ppm, an increase of 21 in ten years.

2%, accounting for 79 of total revenue.

In terms of inventory, the company’s inventory has remained high in recent years, accounting for more than 40% of its net assets.

Investment suggestion: optimistic about the company’s core area in the main equipment field and maintaining the “overweight” ratingThey are 286/334/386 trillion, and the net profit attributable to mothers is 9 respectively.

75/12.

32/14.

66 ppm, the current sustainable corresponding dynamic PE is 33/26/22 times, maintaining the “overweight” level.

Risk warning: Sino-U.S. Trade relations deteriorate, risks of imposing embargoes on upstream optical chips or imposing tariffs on the company’s exports; due to the impact of the macroeconomic downturn, 5G construction progress exceeds expectations.