Company profile:
The company is a leading provider of communication access equipment and solutions in China, continuously focusing on the research, development, manufacturing and sales of communication network access products, and focusing on enterprise integrated access equipment based on communication operators. at the same time, actively expand the business in industrial communications and other fields. At present, the company's products cover six categories: integrated access terminal products, centralized office-end products, industrial network products, private wireless network products, software products and auxiliary access products, with more than 3000 model categories. The products are used in communication operators, smart grid, intelligent transportation and other fields.
Current situation and prospect of the industry
Globally, e-commerce, industry informatization, the Internet of things, smart cities, cloud computing and big data are booming. These new business type and new technologies all rely on high-speed and stable signal transmission, which puts forward extremely high requirements for the network, and is an important driving force for the development of broadband network.
Broadband network has a strong pulling effect on the development of productive forces. According to the World Bank, other things being equal, for every 10% increase in broadband penetration, GDP in high-income countries and low-and middle-income countries can increase by 1.21% and 1.38%, respectively. Broadband network plays a more obvious role in promoting developing economies, is the scientific and technological basis and core driving force of economic and social transformation, and has been upgraded to national strategic infrastructure.
Globally, the Asia-Pacific region has the largest cable broadband market. By the end of 2015, the number of users in the Asia-Pacific region reached 365 million, accounting for 46.09% of the global users, mainly due to the rapid development of the number of cable broadband users in China. By the end of 2015, the total number of Internet broadband access users of basic telecommunications in China has reached 213 million, accounting for more than one of the global users, ranking first in the world. From 2006 to 2015, the average annual growth rate of cable broadband access users in China is about 17%. China has a vast territory, broadband development also shows the characteristics of imbalance, users are mainly concentrated in the east; at the same time, there are great differences in the level of broadband construction between urban and rural areas. Due to the low level of basic network facilities in the central and western regions and rural areas, a large number of wiring is needed in the initial stage of network construction, and the cycle of construction and upgrading is longer, so the current level of network construction is low, but there is great potential for future growth.
Highlights of the company:
The company is a high-tech enterprise and Beijing municipal enterprise technology center, perennially ranked among the top 10 most competitive enterprises in China's optical transmission and network access equipment, and ranked 14th in 2016 as one of the top 50 communication equipment technology suppliers in China's communications industry. in recent years, through independent research and development, the company has owned a number of patented technology and software copyright, and undertaken a number of national, provincial and ministerial-level projects. Based on years of accumulation and precipitation in the field of communication network access, the company was invited to participate in the formulation of communication technology standards of China Communications Standardization Association (CCSA), a number of operators and the power industry, and led the formulation of a number of professional standards in the field of access.
Fund-raising project
1. The industrialization project of intelligent packet network products.
2. Converged communication value-added operation solutions and product industrialization projects 3. Internet of things and industrial cloud solutions and product industrialization projects
(I) Technical risks
The technology of the communication access equipment industry is updated rapidly, which not only provides rare opportunities for the development of enterprises in the industry, but also brings greater challenges. With the continuous progress of technology and the further improvement of customer requirements, we do not rule out the possibility that the company can not follow up the customer's technical requirements in time due to insufficient investment and other factors, which will adversely affect the competitiveness of the company. In addition, there are many branches of communication access technology, if the technology direction chosen by enterprises is not consistent with the mainstream technology direction, it may also reduce the market recognition of our products, resulting in a decline in product market share.
(2) demand risk in the product market:
The company's products are mainly access equipment, and the downstream customers are mainly communication operators. In recent years, the policy environment and market environment faced by operators are constantly changing, they have a strong motivation for business transformation, and the business philosophy is constantly adjusted. These changes may lead to changes in the market demand for our products and affect the product cycle. If the company's products can not follow up the changes in customer demand in time, it may also make the market competition environment of the company's products more severe, resulting in operational risks.
Valuation
The issuer, which works in the computer, communications and other electronic equipment manufacturing industry, posted an average static price-to-earnings ratio of 58.47 times for the latest month as of April 6, 2017. It is estimated that the company's earnings per share in 2017 and 2018 are 0.63 yuan and 0.66 yuan respectively, combined with the current market conditions, the initial pressure is expected to be 40 yuan-46 yuan.