FiberHome(SH:600498) Haitong Securities·2024-03-09 16:00Investment Rating - The report maintains an "Outperform" rating for the company [1]. Core Views - The company is positioned to benefit significantly from the ongoing upgrade to 400G in the optical communication sector, with a strong market share in fixed network equipment [4][63]. - The network visualization industry is expected to grow, with AI opening long-term growth opportunities for the company [4]. - The company has a solid historical performance, with a compound annual growth rate (CAGR) of 17.82% in revenue from 1998 to 2022 [58]. Summary by Sections Company Overview - The company is a leading domestic optical communication equipment provider and a core platform under China Information Communication Technology Group [7][22]. - It has a global presence with multiple production bases and R&D centers, enhancing its international exploration [33]. Optical Communication - The company is a key beneficiary of the 400G upgrade in the backbone transmission network, with leading technology and market share in fixed network equipment [4][63]. - The three major telecom operators are advancing the transition from 100G to 400G, with the company actively participating in various 400G projects [79][82]. ICT and AI - The network visualization market in China was approximately 30.51 billion yuan in 2022, with a projected CAGR of 23.77% from 2022 to 2027 [4]. - The company’s subsidiary is a core participant in the national computing power team, benefiting from increased capital expenditure by operators towards computing power [4]. Profit Forecast and Investment Recommendations - The company’s net profit attributable to shareholders is projected to be 508 million yuan, 678 million yuan, and 818 million yuan for 2023, 2024, and 2025, respectively, with an EPS of 0.69 yuan [4]. - Based on historical valuations and peer comparisons, a dynamic PE range of 35-40X is suggested for 2024, corresponding to a fair value range of 22.88 yuan [4].