Zhongtian Technology: Network reform speed up hundreds of millions of yuan market to be divided

Triple-NET integration, infrastructure first.　　With the start of the three-network integration pilot work, the relevant equipment suppliers will be expected to benefit from the promotion of the triple-net integration. Zhongtian Technology (600522. SH) is one such equipment company. "The Triple-net fusion was discussed a long time ago, and now the pilot program is finally released, and we look forward to the opportunities it brings to the industry."　　"Zhongtian Science and Technology Securities office staff said."　　Citic Securities analyst Zhang Bing that the triple-net convergence era, broadband upgrade is more urgent, optical communications industry will benefit significantly, bullish on the technology of optical fiber cable and broadband technology. It is understood that Zhongtian technology is one of the mainstream fiber optic cable equipment manufacturers, accounting for nearly 30% of the country's market share.　　2009 Annual report shows that the operating income of optical fiber and cable is 1.579 billion yuan, an increase of 24.03%, the main income accounted for 42.39%; the operating income of power cable is 1.738 billion yuan, the year-on-year growth is 25.04%, and the income is 46.66%.　　In fact, for equipment makers including Zhongtian technology, big cakes from radio and television and telecoms may already be in front of them. "From the network layout, radio and television and telecommunications still exist a certain gap, so the future of radio and television will be pursued in this respect." "Radio and television industry expert Wu Chunyong said.　　It is understood that the current backbone of the network only 40,000 skin long kilometers (note: the length of the skin is a long kilometer of optical fiber cable measurement of one of the ways), more than the telecommunications 830,000 skin long kilometer is too weak. Analysts believe that from now on, the state to give radio and television protection period may only two, in this time, radio and television systems must establish a network, after this period of protection, radio and television will be with telecommunications, mobile they direct competition. This bodes well for a huge investment in the broadcasting system in just three years.　　According to expert estimates, the network transformation of radio and television system means more than 600 billion business opportunities. "The biggest investment in radio and television will be the transformation of access network, but the specific situation also depends on radio and television equipment investment plans."　　"Galaxy Securities analyst Xu Yaowen that.　　In addition to radio and television, the telecommunications industry's demand for optical fiber and cable is still strong, on the one hand, 3G continuous expansion will still increase the demand for fiber transmission between the base station, on the other hand, "triple network integration", telecom operators will also speed up broadband construction, in the metropolitan Area transmission network and access In the face of radio and television hundreds of millions of investment, telecommunications also throw billions of investments.　　April 9, the Ministry of Industry, the National Development and Reform Commission, Science and Technology Department, Ministry of Finance, Ministry of Land and Resources, housing construction department, the State Administration of taxation jointly issued the "on the promotion of optical fiber broadband network construction," The opinion that "3 years of broadband network construction investment over 150 billion yuan."　　Thus, to achieve the three-network integration, whether it is telecommunications, radio and television operators will increase the bandwidth, and this will bring greater market demand for Zhongtian technology. Kangzhiyi, an analyst with the East China Sea Securities Communications and Media Group, said that this year's fiber-mining prices have started to fall, and the company's performance will gradually lower,But with the triple-net integration, the national fiber-optic broadband construction needs increasingly clear, the second half of the industry is expected to reproduce the growth momentum.　　He estimated that the company's 2010 earnings per share was 1.21 yuan, with significant valuation advantages. In fact, the triple-Net fusion Equipment class plate has also been favored by the Chinese department of funds. In the first quarter of this year, the Chinese industry selected to hold the Beacon Communications (600498.　　SH) 3.9901 million shares, accounting for 2% of the circulating shares, China's Advantage Growth Fund holds the Zhongtian technology 4.5423 million shares, accounting for 1.42%. Risk tip: Fiber price declines may exceed expectations, new product development poses risks, and stock market systemic risk.