Optical network investment growth in 2016: good for equipment suppliers such as FiberHome
The industry predicts that domestic operators' optical network investment will increase by more than 30% year-on-year in 2016, and FiberHome Communications, as the leader in optical communications, will fully benefit.
Competition among operators in 4G and fixed-line broadband is becoming increasingly fierce. In 2016, investment in wireless networks and access networks will exceed expectations, and investment in optical communications will exceed 30% year-on-year.
FTTH deployment will continue to maintain a high growth rate in the next two years. It is expected that the proportion of FTTH users in fixed-line broadband users will increase from 55.94% to 82.47% by the end of 2017.
Based on its late-mover advantage, China Mobile is expected to invest much more in FTTH in 2016 than in the past.
China Unicom recently issued a bidding announcement for the third phase of LTEFDD acquisition, with a procurement scale of 469,000 base stations, pushing operators' 4G competition to a higher climax.
The higher-than-expected investment in 4G in 2016 will also drive the construction of transmission networks, which will continue to benefit network equipment suppliers including the company.
Overseas business has entered the fast lane, and the company's overseas market will continue to maintain a growth rate of more than 40% in the future.
Overseas revenue is expected to exceed 3 billion yuan in 2015, accounting for more than 27% of total sales revenue.
The construction of 100G trunk lines and wireless networks in Latin America and Southeast Asian countries, the company’s main overseas battlefield, still maintains high prosperity, and the growth rate of overseas markets will exceed that of the domestic market.
At the beginning of 2016, the company successfully won the bid for India’s largest 100GOTN trunk line project and had a good start.
It is estimated that overseas revenue in 2016 is likely to reach 5 billion yuan, and overseas sales will account for 40% of total sales revenue in the future.
With the "One Belt, One Road" initiative, the company's overseas reserve projects will continue to increase, and its overseas business will maintain a high growth rate.
Entering the civilian market will bring huge room for growth for Fengfeng Xingkong. The value of the company's big data business has been seriously underestimated.
The new valuation of the American company Palantir has reached 20 billion US dollars, mainly due to the rapid growth of its commercial customers and the imagination of entering the field of data services in the future.
Palantir’s commercial customer revenue growth rate has been above 82%, and commercial customer revenue accounted for 70%. The revenue scale and growth rate are much higher than government customers.
Compared with Palantir, Fengfeng Xingkong will have huge room for development in the future to expand the civilian market, and its revenue scale and profits will also grow rapidly.
Compared with Palantir, FiberHome’s short-term valuation is more than 10.5 billion.
