Sino-Singapore (002912) coverage report for the first time: 5G continued growth can be expected
Sino-Singapore: Network visualization leader from “front-end” to “local”.
As one of the leading providers of network visualization infrastructure products in China, the company has focused on network visualization infrastructure products and their applications in the field of information security since its inception.
The main business is network visualization infrastructure products, big 杭州桑拿网 data operation products and network content security products.
Shenzhen Venture Capital is a major shareholder and Shenzhen SASAC has actual control.
Benefiting from 5G technology innovation and traffic explosion, network visualization ushers in major opportunities.
The Internet penetration rate is close to 60%, traffic consumption is growing rapidly, and 4G users continue to grow, bringing a lot of demand to the network visualization product market. According to statistics from CCID Consulting, it is estimated that the scale will reach 199 in 2018.
The future trends of the network visualization industry are: 1.
Information security threats and impacts strengthened, and content and traffic regulation became the norm; 2.
Internet traffic has increased sharply, and telecom operators’ “smart pipeline” operation has become inevitable; 3.
To tap the potential value of network traffic, “Big Data Management of Traffic” has become an innovative trend.
5G industrialization has achieved initial results, and the government and enterprise have joined forces to promote the steady development of the industry.
According to ITU speculation, 5G may be officially commercialized in 2020.
New technologies such as 5G NFV, SDN, network slicing, and cloud deployment will also bring new development potential for the information security industry and the upstream network visualization market in the information security industry.
The most complete product line, sales model and R & D advantages create high profitability.
From the perspective of products, the company has the most complete network visualization product line in terms of data source breadth and business application richness, and the integrity of the closed-loop architecture of the overall solution.
The cooperation of broadband network + mobile network products with big data operation platforms and network content security products ensures that the company is always in the leading position in the industry.
From the perspective of sales, the government is the company’s main customer, and the price is relatively insensitive, which is conducive to maintaining the company’s high gross profit.
The company adopts a sales model based on direct sales and supplemented by distribution to directly meet customer needs and provide customized solutions.
From the perspective of research and development, the company’s research and development helps maintain a high level, and 5G and other new product pre-research technologies are leading.
The above results in the company’s high profitability, the company’s gross profit margin and net profit are higher than their peers.
At the same time, the company realized advance payment in 20185.
5.6 billion, an increase of 117% over the same period, owning inventory 2.
2.8 billion, flat in 2017, and the continued growth of inventories and advance receipts indicates a high growth in the company’s orders.
With a target market value of 14.1 billion, it is given a “Buy” rating.
We predict that the company will achieve revenue in 2019-2021.
90 trillion, with a growth rate of 39.
6%, realized profit 2.
51 ppm, with a growth rate of 38.
6%.Considering the company’s high growth, the industry’s leading level and the network visualization traffic demand explosion and technological innovation brought by the 5G post-cycle, with reference to the valuation of comparable companies, the company is given 50 times PE in 2019, corresponding to a market size of USD 14.1 billion.
Risk warning: 5G business progress is less than expected; government and operator network visualization investment is less than expected; key assumptions may risk error.