Special information (000070): Temporary growth in revenue for the time being, temporary growth of 5G construction wave optical communications is ready
Investment Highlights Event: Reported scale, the company achieved operating income of 57.
0.6 million yuan, an increase of 2 every year.
33 ppm, a ten-year increase4.
26%; total profit 3.
53 ppm, an increase of 0 per year.
14 ppm, a ten-year increase4.
12%; net profit achieved 3.
13 ppm, an increase of 0 per year.
16 ppm, an increase of 5 in ten years.
25%; net profit attributable to mother 2.
76 trillion, an increase of 0 over the same period last year.
100,000 yuan, an increase of 3.
78%; budget benefit 0.
Affected by the complex environment of upstream and downstream, the revenue growth in 2018 was temporarily interrupted: the company’s revenue growth in 2018 was vertical. First, there were three factors: first, the growth rate of fiber demand, and second, 5G has not yet started large-scale construction, orders fell, and competition in the industry increased.
Thirdly, due to the ZTE incident, the growth rate of Dongzhizhi, a subsidiary of Dongzhi, slowed down.
After the incident is resolved, we expect the company’s growth rate to be back on track.
Optical communication equipment has become the main growth momentum: the company’s technological advantages mainly involve two major directions: civilian and military industries: the civilian sector is divided into the optical fiber and cable industry and the intelligent access industry, and the military sector is mainly military information technology business.
In terms of revenue structure, optical transmission equipment has become the main driving force for growth, and the proportion of revenue has continued to increase.
The 5G construction tide is coming, and core business is poised for growth: Capital expansion is picking up in 2019, centralized mining is being started, network construction is about to start, market orders are expected to continue to grow, and the communications industry will usher in the next wave of breakthrough development; meanwhile benefitingThe needs of the national army’s informatization construction, the accelerated replacement of military equipment, the implementation of military reforms, and other factors, the market demand for 武汉夜网论坛 military information products has gradually increased, and the military industry has maintained a certain degree of prosperity, providing opportunities for the development of the military information industry.
Profit forecast and investment grade: We continue to be optimistic about the future development of Special Information, and we expect revenue from 2019-2021 to be 60.
3.6 billion, 65.
3 billion, 73.
50,000 yuan, a five-year growth rate of 5.
9%; net profit attributable to mother is 2.
8.7 billion, 3.
1.8 billion, 3.
68 ppm, a four-year growth rate of 4.
7%; corresponding EPS is 0.
46 yuan, 0.
51 yuan, 0.
The current corresponding PEs are 32/28 / 25X respectively; they are given a “Buy” rating.
Risk warning: Sino-U.S. Trade frictions are alleviated 武汉夜生活网 and expected, military reform is lower than expected, industry competition is intensified, and capital expenditure of operators is less than expected