Depth-Company-Starnet Ruijie (002396): First-quarter results meet expectations and take the lead to benefit from network cloudification

Deepin * Company * Starnet Ruijie (002396): First-quarter results meet expectations and take the lead to benefit from network cloudification

The company released the results for the first quarter of 2019 and reported that the combined company realized operating income12.

8.3 billion, a decrease of one year.

78%; net profit attributable to mothers is expected to be 6.16 million yuan, a decrease of 7 per year.

71%.

The main points of the support level were affected by 杭州桑拿养生会所 industry consolidation in the first quarter, and the company’s performance was in line with expectations.

The company’s net profit attributable to its mother in the first quarter was 6.16 million yuan, which was slightly narrower compared to the same period last year, which was 668 million, which was in line with the expectations of exceeding 5 million to 15 million in the first quarter.

The fundamental reason is mainly affected by the industry, the first quarter is the traditional off-season, coupled with the Spring Festival holiday, production and sales have decreased.

During the reporting period, the company still maintained high R & D investment, and the R & D expenses increased by 22 compared with the same period of the previous year.

97%.

With the continuous expansion of the company’s business in the second half of the year, the overall profitability has continued to grow.

Deeply cultivated the data communication market, and gradually improved the ICT industry solutions.

As domestic Internet companies continue to increase the scale of cloud-based data center construction, the company’s new data center product solutions have broad application prospects. At present, the company’s 25G / 100G data center product solutions have been implemented in large-scale Internet companies such as Ali and Tencent.Promote the continuous inclusion of cloud data centers.

In terms of ICT solutions, the company has continuously strengthened its unique overall solution capabilities in various fields. Its products cover multiple industry application scenarios such as finance, insurance, government, education, healthcare, and enterprises. The downstream market has ample space and is expected to drive the company’s performance to continue to grow.

The company’s SDN technology is leading, and network cloudification is expected to benefit first.

SDN technology has a large and wide range of applications in the context of 5G network cloudification. Operators, Internet companies, etc. are actively promoting the commercialization process of SDN.

The company has been exploring the SDN field since 2011, and has accumulated a deep technical reserve.

The company has formed a series of special service-oriented SDN solutions that can cover campuses, data centers and wide area networks.

With the continuous deepening of the construction of 5G networks, the company will use its own technical advantages to advance the market card position, and take the lead in benefiting from the transformation and construction of network cloudification to provide guarantee for the company’s future performance growth.

It is estimated that we maintain the company’s EPS forecast for 2019-2021 to 1.

21, 1.

47, 1.

72 yuan, the corresponding price-earnings ratio is 22.

9 times, 18.

8 times, 16.

0x, maintain BUY rating.

Main risks facing rating Macroeconomic impact risks, new business expansion did not meet expectations, and technology development did not meet expectations.