YOFC (601869): Leading technology and internationalization results are expected to bottom out

YOFC (601869): Leading technology and internationalization results are expected to bottom out
The company’s leading industry advantages have deepened global business expansion, and future performance is expected to bottom out.  Investment suggestion: Cover for the first time and give a “cautious increase” rating.It is estimated that the company’s net profit attributable to its parent in 2019-2021 will be 8.9.8 billion, 10.4.4 billion, 13.29 trillion, corresponding to EPS 1.18 yuan, 1.38 yuan, 1.75 yuan.Considering the size of the company’s industry leader, referring to the two estimation methods of PE and APV, the company is given 30 times PE estimation level in 2019, and the corresponding target price is 35.4 yuan, covering for the first time, giving a “cautious overweight” rating. The upstream technology continues to innovate, staying at the top of the industry, and improving the concentration of the industry to promote the realization of the stronger.The company is the first company in China that has the production capacity of optical 苏州夜网论坛 fiber rods.In the optical fiber and cable industry chain, the optical fiber advantage rod is located at the core of the upstream replacement, replacing 65% -70% of the cost of optical fiber, and has the highest technology gate performance.As one of the few companies that has mastered multiple mainstream optical fiber cutting-edge rod manufacturing technologies at the same time, the company steadily ranks in the domestic leading position in the industry competition. As a result, the concentration of the industry has increased, and the company is conducive to making full use of the leading dividends. Seize the potential of overseas markets, implement in-depth internationalization strategies, and expect operating results to exceed expectations.The company strengthened the integration of production, supply and marketing of overseas subsidiaries to form a regional localized collective collaborative business model. Based on optical fiber and cable, it comprehensively improved the sales capacity of overseas products and the acquisition and delivery capacity of large and medium-sized projects to become stronger and larger.overseas business.The company’s overseas operating income is expected to continue to grow significantly, and its operating performance is expected to bottom out. Catalysts: 5G commercial expansion at home and abroad, the company’s overseas business orders continue to be released; risk warning: operators’ 5G investment is less than expected; trade war brings risks of industry uncertainty.