SDGI(SZ:000070)2022-12-06 09:54Group 1: Company Strategy and Market Position - The company is in a booming industry with significant domestic and international market demand growth for network and bandwidth services [1] - Since 2013, the company has established a new strategic development direction, focusing on maintaining its industry position and enhancing product competitiveness in the cable business [1] - The broadband access network is a clear trend, with the market not yet fully competitive; preparations in optical integration and modules began in 2013 and 2014 [2] Group 2: Current Business Situation - The cable market is expanding, with increased bidding scale; the optical splitter market is rapidly growing, and the company is expected to benefit from the rising demand for fiber-to-the-home equipment [2] - The company has a production capacity of 20 million core kilometers for optical cables and 10 million core kilometers for optical fibers, but faces supply shortages for self-produced optical fibers [2] - The company’s shortcoming is the lack of preform production, which affects overall operational efficiency [2] Group 3: Financial Performance and Market Predictions - The profit margin for Shenzhen Dongzhi in the first half of the year was lower than the previous year due to financial constraints before the acquisition, which limited order selection to higher-margin, timely payment orders [3] - After the acquisition, financial issues were alleviated, allowing for expanded production scale and broader order acceptance, albeit with some decline in profit margins [3] - The fiber market is expected to remain prosperous until the preform supply issue is resolved, with market demand projected to remain strong at around 200 million [3]