FiberHome(SH:600498) Haitong Securities International·2025-05-07 05:42Investment Rating - Investment rating is upgraded to Outperform with a target price of RMB 29.72, reflecting a 12% upside from the current price of RMB 21.36 [1][5][9] Core Views - The company reported a revenue of RMB 28.55 billion for 2024, a year-on-year decrease of 8.29%, while net profit attributable to shareholders increased by 39.05% to RMB 703 million [5][9] - The computing power business is experiencing rapid growth, with domestic revenue nearing RMB 6 billion and a compound annual growth rate (CAGR) exceeding 100% over the past two years [5][9] - The company has secured a position as a core supplier for 400G OTN networks, enhancing its competitive edge in the optical communication sector [5][9] Financial Summary - Revenue projections for 2025-2027 are updated to RMB 31.15 billion, RMB 32.97 billion, and RMB 34.57 billion respectively, with corresponding net profits of RMB 1.01 billion, RMB 1.17 billion, and RMB 1.34 billion [3][5][9] - Earnings per share (EPS) estimates for 2025-2027 are RMB 0.85, RMB 0.99, and RMB 1.13 respectively [5][9] - The company’s gross profit margin for communication systems is 19.46%, for fiber and cable is 25.35%, and for data network products is 43.92% [5][9] Product Performance - Revenue from communication systems was RMB 22.31 billion, down 6.19% year-on-year; fiber and cable revenue was RMB 4.70 billion, down 12.77%; and data network products revenue was RMB 1.14 billion, down 27.44% [5][9] - The company has optimized its expense ratios, achieving a total expense ratio decrease of 0.11 percentage points despite a decline in overall revenue [5][9] Global Expansion - The company has initiated trial production at its R&D and manufacturing bases in Thailand and Hungary, which is expected to help mitigate trade risks [5][9]