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Accelink: optical communications industry grow hand in hand with the customer

Published:2010/12/24 10:28:19 |

Optical communication industry with downstream customers dual-core drivers: First, benefit from fiber to the home, bandwidth upgrades, 3G construction, core network expansion requirements, etc., etc., and optoelectronic devices to enhance the value of accounting for the next three years compound annual growth rate of optoelectronics market will more than 25%; the second is an important customer benefit (Huawei, ZTE and flames and other revenues accounted for approximately 40% share) and market expansion, the company needs to grow rapidly.

    After capacity expansion, performance and market share growth can be fast

    The company raised investment project is completed in 2011, almost double the production capacity to complete the expansion, with the optical components industry, increasing market concentration, the company may be through increased R & D or acquisitions in order to maintain a higher gross margin, expected performance and market share achieved rapid growth, revenue growth in 2011 about 30% to 40%.

    Growth is expected to reflect the management equity incentive

    Equity incentive incentive system is expected to significantly improve the management confidence in strong future growth, motivate the exercise requirements of the company's growth requirements in 2011 net profit of about 30% or more.

    2010Q3 certain margin increased steady increase revenues and profits

    January-September 2010 the company achieved operating income of 699 million yuan, an increase of 20.27%, net profit of 105 million, an increase of 24.03%, EPS of 0.66 yuan, unchanged from a year earlier. Demand-driven, steady growth in revenues and profits; Although management expense ratio has increased, but still maintain a high gross margin.

    Earnings forecasts and investment ratings

    We expect 2010-2012 EPS was 0.78 yuan, 1.12 yuan, 1.33 yuan, respectively, for the 58,40,34 times corresponding to PE, the current stock valuation is reasonable, considering the development prospects of the optical communications industry, giving the company "hold a "rating.

    Risk Warning

    May delay the completion of capacity expansion, telecommunications, broadcasting and other institutions such as optical communication into lower than expected risk.