A summary of the collection

Set is a SD-WAN router provider, mainly responsible for the design, development, promotion and sale of products and services of the market. The products and services of the collection are available to business users and business customers (such as transportation, retail and education, etc.). The market will not produce products, but will outsource the manufacturing process of the products to a contract contractor located in Taiwan. By the end of the 15th, the collection had received four patents granted by the United States Patent and Trademark Bureau. According to the Quocirca report, it was the fifth largest provider of SD-WAN routers in the world in 15 years by revenue value.

We promote and sell our products and services to customers under our own brands "Peplink" and "Pepwave". The revenue of the collection mainly comes from the sale of self-developed SD-WAN routers and the proprietary technology SpeedFusion (that is, a technology specially designed to connect multiple domain networks and build security private networks).

Industry summary

According to Quocirca reports, the global SD-WAN router market is only a small part of the global router market, accounting for 1.9% of the global router market.

According to the Quocirca report, the market cost of SD-WAN routers is expected to grow at a compound annual growth rate of 31.8% from 2015 to about 1.51 billion US dollars in 2020.

Cymbals

The collection is based on a limited number of contract manufacturers to manufacture products. On the other hand, the main raw materials for production are supplied by a limited number of raw material suppliers. In 13, 14 and 15 years, more than 70% of the market's sales to the five major suppliers were made. If there is a significant change in the relationship between the collection and the supplier, or if any supplier encounters a problem of medium or quantity control in the course of the business operation, or it may have a significant adverse effect on the business and business conditions of the collection.

Valuation

According to the IPO document, as of December 31, 2015, based on the calculation of more than 100 shares expected to occur after the completion of the sale of long-term shares, shares should account for an untested tangible assets area of US $1863 to US $2482, equivalent to HK $0.147 to HK $0.194 per share (at an annualised rate of US $0.147 to HK $7.7502).