Sino-Singapore (002912) in-depth report: focus on network visualization before the industrial chain, the synergy effect is prominent
The company is a domestic network visualization leader with a complete product line and strong competitiveness.
Since its establishment, the company has continued to focus on the field of network visualization, forming an integrated industrial chain from front-end traffic collection to content security and big data analysis, which has maintained a continuous influence in the government and operator markets.
In 2018, the company’s total operating income reached 6.
910,000 yuan, an increase of 38 in ten years.
85%, the compound annual growth rate of total operating income from 2015 to 2018 reached 27.
The growth rate of net profit attributable to mothers has been accelerating since 2015, reaching a growth rate of 54 in 2018.
The front-end business will maintain high growth, network expansion and stricter supervision are the main driving forces.
Front-end business is the company’s core business.
Revenue in 2018 reached 5.
9.6 billion, accounting for 86% of the company’s main business income.
Front-end products are mainly used for traffic collection, including broadband and mobile network products.
At present, broadband network products are in line with the trend of backbone network upgrades, and have realized a comprehensive upgrade from 10G equipment to 100G equipment, and revenue has shown a volatile upward trend.
From 2014 to 2018, the average income growth rate reached 24.
The driving force for the future growth of broadband network products lies in the expansion of the backbone network and a more stringent regulatory environment, with high demand certainty.
Mobile network acquisition and analysis equipment will also face new opportunities. In the future, the completion of 5G network construction will be gradually realized, and the growth rate of related product revenues is expected to return to high growth.
Although the initial content security and big data business scale is small, it is growing rapidly.
The company’s content security products are deployed overseas, mainly in Southeast Asia and Africa.
In 2018, the company’s content security revenue reached zero.
540,000 yuan, an increase of 133 in ten years.
20%, of which own channels have become the main sales channel.
The company’s big data operation products mainly provide basic platform construction, data model establishment and business application services.
In 2018, the scale of this business income reached 17.4 million yuan, an annual increase of 243.
Although the big data business is not large, it can benefit from the rapid development of the entire big data industry in the future, and it can also gain more market space in collaboration with front-end business.
We expect that in 2019, the two target business segments will still show growth momentum, and the revenue scale is expected to double.
Investment suggestion: The company is a leading domestic network visualization enterprise. Its broadband network products will achieve rapid growth in the context of backbone network expansion and gradual supervision. Mobile network products will gradually restore demand growth through 5G networks in the future.The degree of integration with the front end is also rapidly increasing, and synergies have begun to stand out.
According to the company’s 2018 annual report and 2019 interim newsletter data, we adjusted the company’s profit 苏州夜网论坛 forecast, and the company’s EPS is expected to be 2 in 2019-2021.
59 yuan (was 2).
47 yuan), 3.
48 yuan (was 3).
45 yuan), 4.
59 yuan, corresponding to the closing price on August 6 price-earnings ratio of 40.
8 times, 30.
4 times, 23.1x, maintaining the “recommended” level.
Risk reminders: (1) Risk of intensified market competition.
Absolutely, industry players are increasing and competition may increase.
In addition to traditional communication equipment companies may enter this market, in addition, some companies such as DP, Hengwei, etc. are developing rapidly at the same time, and competition pressure between enterprises may increase.
(2) Risks of front-end business growth falling short of expectations.
The main customers of the company’s front-end products are governments and operators.
Affected 北京桑拿洗浴保健 by factors such as the macroeconomic downturn, government spending and operator procurement may be delayed, or the payment cycle may be lengthened, which may bring changes to the company’s front-end business income and the growth is less than expected.
(3) Risks of content security and big data business growth falling short of expectations.
The country’s content security business has high country risks, high uncertainties about whether orders can achieve stable growth, and revenue recognition may also fluctuate. Big data business is currently in its infancy, and market competition is fierce.The development of other vertical industries is uncertain.