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Recently, Broadex Technologies Co.Ltd(300548) released the performance report for 2021. The operating revenue was 1.154 billion yuan, a year-on-year increase of 48.59%; The net profit attributable to the parent company was 162 million yuan, a year-on-year increase of 83.6%.
The company makes simultaneous efforts in the telecom market and digital communication market, and the telecom market accounts for a relatively high proportion. Benefiting from the vigorous construction and upgrading of access networks by telecom operators, it increased by 56.38% year-on-year in the telecom market, accounting for 96.24% of the total sales revenue.
The company continues to increase research and development and launch new products to maintain technology leadership. In 2021, the company’s R & D expenditure was 62.24 million yuan, a year-on-year increase of 15.42%, accounting for 5.39% of the company’s operating revenue.
Benefiting from Chinese operators vigorously promoting the construction of Gigabit broadband network, the company’s performance has increased significantly.
10gpon port has entered the rapid construction period. By the end of 2021, the number of Gigabit and above broadband users in China has reached 34.56 million, a net increase of 28.16 million year-on-year.
Chengdu Rongbo, a subsidiary of the company, continues to increase the research and development of new 10gpon and next-generation PON optical modules, and continues to expand the production scale. At present, the shipment volume of 10gponolt optical modules is in the lead in China.
The company actively invests in the research and development of silicon photonic technology, focusing on the internal interconnection and wireless prequel of the data center.
Silicon photonic technology is an important development direction of optical device industry. According to the prediction of lightcounting, the market scale of optical devices based on silicon light will reach 30 billion US dollars from 2021 to 2026.
The company focuses on the development of transceiver modules based on silicon photon technology, which are applied to the internal interconnection of data center and the field of wireless pre transmission. The wireless pre transmission 25g silicon optical module and data communication 400gdr4 silicon optical module realize mass production.
The market demand for wavelength division transmission is stable, and it is expected to be upgraded in the future to open up market space.
With the application of 200g and higher rate OTN in transmission network, DWDM devices are undergoing upgrading process. DWDM devices with larger number of channels and smaller wavelength spacing are becoming the mainstream in the industry.
According to Dell’Oro’s prediction, the global optical transmission equipment market will increase to US $18 billion by 2026, with a compound annual growth rate of 3%. The company’s DWDM devices occupy the forefront of market share among Chinese communication equipment manufacturers.
Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) becoming the controlling shareholder and actual controller of the company will benefit the long-term development of the company. The company’s existing main business and development strategy will remain unchanged, and the internal core team will remain stable. We believe that the company’s introduction of Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) is conducive to the integration of resources between the two sides, give play to the collaborative advantages of the industrial chain, and look forward to the long-term development of the company.
Market review:
This week (202204.06202204.08), the Shanghai Composite Index, Shenzhen Component Index and gem index increased by – 0.94%, – 2.20%, – 3.64% respectively, and the Shenwan communication index increased by – 3.36%, ranking 22nd among Shenwan’s 28 primary industries.
Performance of individual stocks in the communication sector this week:
The top five stock price increases are: Chutian Dragon Co.Ltd(003040) , Broadex Technologies Co.Ltd(300548) , Boomsense Technology Co.Ltd(300312) , Kaile Science And Technology Co.Ltd.Hubei(600260) , Hubei Sanxia New Building Materials Co.Ltd(600293)
The top five stock price declines are: Hengxin Shambala Culture Co.Ltd(300081) , Hangzhou Freely Communication Co.Ltd(603602) , Jilin Jlu Communication Design Institute Co.Ltd(300597) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Wenzhou Yihua Connector Co.Ltd(002897)
Investment strategy: (1) 5g network coverage continues to improve, the number of 5g base stations exceeds 1.4 million, and the leading 5g equipment manufacturer is continuously recommended: Zte Corporation(000063) ; (2) The increase in the penetration rate of 5g package users drives the Arup value of operators. Operators give up the price war and improve user stickiness by providing more high-quality and differentiated services. It is suggested to pay attention to: China Mobile; (3) The development of the Internet of things industry has entered the fast lane, focusing on the investment opportunities of vehicle communication modules. It is suggested to pay attention to Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) ; (4) In the context of double carbon, green energy conservation has become the main theme, and precision temperature control faucets are recommended: Shenzhen Envicool Technology Co.Ltd(002837) .
Risk tip: the development of 5g is not as expected, the trade friction between China and the United States has further escalated, and the epidemic has further spread.
