Star Network Ruijie: Benefit Information cloud computing future sustainable growth can be

Information technology is listed as a national strategic emerging industry, the future will be strongly supported by policies, information, things networking, cloud computing future has a broad space for development, which provides a good market environment for the development of enterprise-class network equipment. We expect the enterprise-level network equipment market to grow by nearly 30% per cent in the next 3 years.

Thin clients have low-cost, security, reliability, good management advantages, has been widely accepted by industry customers and recognized, in the process of information centralization contains huge market opportunities, in the banking, insurance and other fields have been more popular in the securities, telecommunications, government and large enterprises and other areas of the field of application prospects, Future cloud computing will boost demand for thin client markets.

The company is one of the earliest manufacturers engaged in thin client development, in the industry leading position, is the largest thin client manufacturers, market share of more than 30%, is Microsoft, INTEL, AMD and other international giants strategic partners, the company's market competitive position is increasingly strong, the future market share is still rising trend.

The company actively cultivates new growth points, raising investment projects EPOS, DMB have better prospects for development, in China Mobile IMS bidding more than 10 packages in four package to get the share first. In the future, with the promotion of triple network integration and the popularization of optical fiber access, the home gateway market will also be triggered.

The company in the next 3-5 years in a steady and rapid growth period, 10-12 EPS is expected to be 0.85, 1.23, 1.73 yuan, dynamic PE is 43.4X, 29.9X, 21.3X, the next three years the company's compound growth rate of about 40%. With 12 years 30-35xpe, the corresponding valuation 51.81-60.45 yuan. In view of the good growth of the company, the company has long-term investment value. Give a "buy" rating.