Updated : Mar 18, 2020 in awhvqpmqf

Industrial Fulian (601138): Benefiting from 5G, Cloud and Edge Computing Development Starts Industrial Internet Platform

Industrial Fulian (601138): Benefiting from 5G, Cloud and Edge Computing Development Starts Industrial Internet Platform

Event: Industrial Fulian released its 2018 annual report and achieved revenue of 4153.

78 ppm, an increase of 17 in ten years.

2%; net profit attributable to mother 169.

02 ppm, a six-year increase of 6.南宁桑拿

5%; deducted non-attributed net profit 167.

23 ppm, a ten-year increase4.


Comments: 1. The gross profit margin exceeded expectations in the fourth quarter, and the operating net cash flow for 18 years was good.

Industrial Fulian achieved revenue of 4,153 in 18 years.

78 ppm, an increase of 17 in ten years.

2%; net profit attributable to mother 169.

02 ppm, a six-year increase of 6.


The fourth quarter revenue was 1314.

52 ppm, a decrease of 5 per year.

8%, an increase of 5 from the previous month.

2%; net profit attributable to mother 71.

460,000 yuan, an increase of 12 in ten years.

2%, an increase of 67 from the previous month.


At the beginning of 18, the company copied other main businesses, and the revenue of comparable calibers increased by 23.

1%, gross profit was basically flat for ten years.

Overall gross profit margin in the fourth quarter was 9.

7%, a reduction of 0 each year.

An integer of 3, an increase of 1 from the previous quarter.

6 averages, exceeding expectations.

Looking at sales in the fourth quarter quarter-on-quarter, the management expenses decreased on average, and the efficiency improvement was very effective.

The net inflow of operating cash flow in 18 years was US $ 22 billion, exceeding net profit and significantly exceeding the net investment cash flow.

US $ 6.8 billion, the ability to pay dividends can be expected.

2. Communication network equipment and cloud service equipment drive revenue growth.

Communication network equipment product revenue was 25.91 million yuan, a year-on-year increase of 20.

8%, overall ASP increased, global demand for 4G facilities is better driven; cloud service equipment revenue was 153.2 billion, an increase of 27.

3%, the overall ASP increased, the company’s customer base expanded from the field of network communications to telecommunications operators; precision tools and industrial robots revenue5.

1.8 billion, down 46 previously.

3%, currently based on internal empowerment.

3. Intelligent manufacturing giants benefit from 5G, cloud and edge computing development, solutions, technologies, and customer advantages.

The popularity of 4G and the rise of 5G, the rapid development of cloud computing and the emergence of edge computing have driven the network, telecommunications, cloud servers and storage have grown steadily.

The company’s core strength lies in completing the layout of the backup industry chain, complete solutions and core technologies and customer synergies.The company’s market share in various fields is high, and the trend of higher downstream concentration continues to benefit the company’s stable scale. Multi-customer advantages can obtain cloud service equipment orders from communication network equipment customers and exert synergies.

Based on the 4G overweight and 5G investment rhythm, the demand for telecommunications and network equipment is expected to grow in 19 years, and relatively fast in 20 years.

The overall capital expenditure of cloud computing vendors is expected to increase slightly in 19 years, and is expected to accelerate again in 20 years.

Structural components are expected to be affected by the expansion and attenuation of smartphones in 19 years, and a new replacement cycle in 20 and 21 years can be expected.

Precision tools and robots have begun to externally empower in areas such as rail transit.

4. Fog cerebellum, the industrial cloud platform, Micro Cloud and the cornerstones of the lights-out factory, internal empowerment has begun to bear fruit, and the industrial Internet pioneer set sail.

Accenture predicts that the Industrial Internet will bring more than $ 15 trillion in growth to the global economy by 2030.

The company’s core strength lies in its large scale, extensive manufacturing experience and massive data accumulation in the past. At present, many fist products and benchmarks for light-out factories have been formed. From the perspective of efficiency and cost reduction, internal empowerment has seen initial results.

5. For the first time, give a “prudent recommendation-A rating”.

Industrial Fulian is positioned as the Hon Hai Precision Industrial Internet platform, and its manufacturing business conforms to the needs of the 5G + AIoT and Industrial Internet tides. At the same time, it explores the Industrial Internet, empowers internally and then externally, and expands to the pan-industrial field to become intelligent manufacturingAnd technology service integrated solution service provider.

The text combs the financial data in detail, the company’s business logic and segmentation, and attaches the minutes of the Industrial Fulian 18-year investor briefing.

We forecast the net profit attributable to mothers for 19/20/21 to be 177.



44 trillion, corresponding to 0 EPS.



08 yuan, the corresponding PE is 18.



0 times, for the first time give a “careful recommendation-A” rating.

Risk factors: Lower-than-expected downstream capital expenditure, intensified competition, and lower-than-expected external empowerment of the Industrial Internet.