Fiber optic cable industry demand remains high

The retreat of light into the copper to ensure that the optical fiber cable industry demand remains high

China's optical fiber and cable industry has risen with the development of national communications. Optical fiber cables have applications in the communications backbone network, metropolitan area network, and access networks. In recent years, the total mileage laid has steadily increased. The average annual increase of 20% . We believe that with the increasing demand for network bandwidth in China, Guangjin Copper Retreat will become a major trend, which will ensure that the growth momentum of the industry can continue in recent years. At present, China's broadband penetration rate is calculated at 3.4 people per household, which has reached 27% . However, China's broadband transmission speed has always had the problem of “ broadband is not wide ” . This is due to the oligopoly in the domestic broadband operation industry, 3G The large investment in capital consumption, the limited IPTV services, and the slower integration of operators have resulted in a slowdown in access network investment and other factors. As a result, the average broadband speed is only 600kbps, 1.7Mbps significantly behind the average level of the world. According to Speedtest's statistics, China's average speed of access to the Internet ranked 81st in the world, ranking equal to the Chinese men's soccer team.

At present, the broadband technologies commonly used in China are xDSL access and Cable coaxial access. Due to the physical limitations of the twisted-pair copper wires, the DSL transmission bandwidth is inversely proportional to the transmission distance. To increase the speed of broadband access, it is necessary to shorten the distance the signal travels in the copper cable. The FTTC , FTTB , FTTH and other methods can be used to achieve different application scenarios. In short, low-loss, high-bandwidth fiber networks need to be as close as possible to users. This will allow the access network to significantly increase the demand for fiber.

At present, the valuation of the optical fiber and cable industry is roughly between 20-30 times. Taking into account the decline in fiber prices in the second half of the year, the gross profit decreased, partially offsetting the increase in sales. Give the industry overall holding rating. It is advisable to pay close attention to companies that have acquired optical fiber preform technology, such as Hengtong Optoelectronics and Zhongtian Technology.