Main points of investment
1. Science and Information Technology: accessories manufacturer of Communication Network Infrastructure
Kexin Technology is a high-tech enterprise specializing in R & D, production and sales of communication network equipment and providing application solutions and technical services, and has gradually expanded to engineering construction, operation and maintenance and other technical services. The annual income is expected to exceed 700 million, and the net profit is expected to reach 70 million.
two。 The fierce competition in the industry is highly related to the capital expenditure of the three major operators and iron tower companies.
The competition in the communication network infrastructure market is fierce, and it is usually purchased through bidding by operators and iron tower companies. product price, quality and follow-up service are the core elements of the competition. In the industry, the company is faced with price competition from companies such as Rihai Telecom and Xinhaiyi, which requires the company to carry out continuous research and development, launch new products and improve the company's competitiveness.
3. Investment advice:
In the past few years, with the expansion of optical fiber broadband (FTTX) network and wireless network construction (4G), the company's revenue and profits have maintained a rapid growth. In the future, with the slowdown of investment and construction by operators, we expect the industry as a whole to maintain a stable level and need to pay more attention to the development and development of the company's new business. The company raised a net capital of 314 million yuan, and plans to implement four projects: technical transformation of communication network physical connection equipment, construction of R & D center, construction of marketing service system and replenishment of working capital. We forecast that the company's EPS in 2016, 2017 and 2018 will be 0.39,0.42 and 0.5 respectively, and the corresponding PE will be 73x, 62x and 51x, covering for the first time and giving a recommended rating.
4. Risk Tips:
(1) the substitution of new product technology; (2) the fierce competition in the industry will continue to worsen in the future.
