Hengtong Optoelectronics (600487) semi-annual report: Fiber optics need to pick up, marine business acquisition + strong expansion of investment vertical and horizontal

Hengtong Optoelectronics (600487) semi-annual report: Fiber optics need to pick up, marine business acquisition + strong expansion of investment vertical and horizontal

Event: The company released its semi-annual report for 2019 and achieved revenue of 154.

12 ppm, an increase of 0 in ten years.

92%, net profit attributable to mother 7.

31 ppm, a decrease of 37 per year.

65%, net profit after deduction 6

3.7 billion, a decrease of 41 every year.


Power and marine businesses 合肥夜网 are generating strength, and pressure-bearing optical fiber and cable prices have fallen.

In the first half of 2019, the company actively deployed strategic emerging businesses in the marine and power markets to cope with the sharp decline in the price of optical fiber centralized mining in the market, helping the overall revenue growth rate to be zero.


In terms of business, the optical network and system integration business in the first half of 2019 achieved revenue of 35.

29 ppm, a decrease of 28 per year.

32%, gross profit margin fell to 33 at the same time.

09% (end of 18 was 37.

88%), income from power transmission and system integration business50.

RMB 440,000 (35 years in ten years).

21%), the income from offshore power communication and system integration business10.

310,000 yuan (10 years growth of 205.


The company’s overall gross profit margin is 17.

12% (year -3.

45PCT), sales expense ratio 3.

30% (decade +0.

11PCT), overhead cost ratio 3.

04% (decade +0.

09PCT), financial expense ratio 2.

46% (decade +0.


Having won a large order, it plans to acquire Huawei Ocean and establish an entire industrial chain of ocean business.

In the first half of 2019, the company successively won the bids for the purchase of submarine cables and related accessories for offshore wind farm projects, laying projects and offshore wind power turnkey projects, converted the bid amount of about US $ 2.6 billion, and further enhanced its system integration solution capabilities.

In June 2019, the company issued an announcement that it plans to acquire 51% of Huawei’s subsidiary, Huawei Ocean, by issuing shares and cash payment. Huawei Ocean is a submarine cable communication network construction solution provider.The amount of orders for cable construction projects to be delivered exceeds US $ 500 million. We believe that the construction of the global submarine cable communication network injected by Huawei Ocean will help the company build the entire industrial chain of the ocean business and significantly increase profitability.

R & D keeps growing, investment accumulates momentum, and strengthens confidence in long-term development.

Under the background of the company’s business pressure, the company continued to expand R & D investment in the first half of 2019, and R & D expenses continued to increase13.


In addition, the company intends to raise no more than 52 trillion by issuing stocks27.

US $ 300 million investment in the PEACE transoceanic submarine cable communication system operation project. Equipment integration and offshore operations will be carried out in early 2020. At present, Huawei Offshore has been identified as the total shutdown;

200 million investment in 100G / 400G silicon optical module project.

We believe that the continuous advancement of operational projects and silicon optical module projects will effectively promote the company’s long-term development. profit prediction.

Affected by the decline in fiber optic cable prices in 2019, we expect the company’s profits to improve in 2019, and with the subsequent increase in domestic 5G and overseas fiber optic cable demand, the overall industry will gradually recover.

We expect company 19?
The net profit attributable to shareholders of listed companies in the 21 years was 19 respectively.

6.4 billion, 23.

01 billion, 27.

8 billion, EPS is 1.

03 yuan, 1.

21 yuan, 1.

46 yuan.

With reference to a comparable company’s assessment, the company’s 2019 dynamic PE is 19-23 times, corresponding to a reasonable value range of 19.


69 yuan, “Neutral” rating.

risk warning.

Offshore business development fell short of expectations; fiber optic cable prices exceeded expectations.