2020 Mar 26 By admin 0 comment

Pei Communication (603220): Pei Communication strives to set a new benchmark for 5G project construction-steadily welcome 5G
This report reads: The company in the 4G era relies on solid engineering and construction quality to gain high trust from customers. The winning bids are in the forefront. 5G commercial construction is ahead of schedule. The company is expected to take off again and its performance is expected to exceed expectations. Investment Highlights: Cover for the first time and give an “overweight” rating.We expect the company’s revenue to be 20 in 2019-2021.1.3 billion, 24.1.6 billion and 31.41 trillion, net profit attributable to mother is 2.310,000 yuan, 2.81 ppm and 4.2 trillion, the corresponding EPS is 0.68 yuan, 0.83 yuan and 1.24 yuan. Considering the acceleration of 5G construction, the demand for the company’s communication network construction business will continue to increase. With reference to PE and APV two estimation methods, combined with comparable company forecast levels, the company will be given 45 in 2019.5x PE estimate with a target price of 30.94 yuan, covering for the first time, give “overweight” rating. The winning bids in the collection are at the forefront, and the performance in the 5G era is expected to exceed expectations.The beneficiary company is in the leading position in the number of bids for China Mobile projects, and the company’s performance has grown rapidly. Among them, the company achieved revenue and net profit in 2018.51 ‰ (+ 28.75%) and 1.4.6 billion (+23.73%), the company’s revenue and net profit in Q1 2019 exceeded expectations by 212.25% and 150.09%.Good customer reputation is promoting the continuous and stable development of performance, and the virtuous circle of 5G era is expected to continue. The construction of 5G commercial speed-up takes precedence, and the company benefits first and brings marginal improvement in performance.5G commercial speeds up, major operators’ investment in communication networks will continue to increase, and 5G base stations and transmission network construction will be prioritized.Ninety percent of the company’s business comes from engineering construction. Large-scale construction through 5G has been carried out successively. It is expected that the company’s future performance marginal improvement will be obvious.The company has accumulated a good reputation in the industry and is down-to-earth. In the 5G era, it continues to strive 天津夜网 for success and set new benchmarks. Catalysts: 5G commercial speed-up, 5G trial commercial breakthroughs, and 5G related license distribution. Risk reminder: the intensified industry competition in the future will bring the risk of the company’s market share decline; the operator’s investment is less than expected; the trade war brings uncertainty to the development of the industry.