Optical fiber product demand gross margin is expected to increase

" This year as long as the production of optical fiber has the market, " Hengtong photoelectric senior yesterday told the reporter, " from the three quarter of last year is in short supply situation. " China several major operators of pushing the " fiber to the home " strategy to the photoelectric effect to get instant results, from the three major operators in order to continue to grow, preform production rate and stable increase of profit in 2012, the company is very optimistic about the prospects.

In 2010 due to excessive production capacity expansion, optical fiber and cable manufacturing industry experienced the 2010 and the first half of 2011, the price glides and entire industry to pile up in excess of requirement. While the overall market sentiment than photoelectric management expectations. Company 90% orders from home to three major carriers headed for telecommunication enterprises, 10% from the overseas orders, while the market at home and abroad at the same time has shown demand, production sales decision situation. " China Mobile Optical Jicai quantity first, telecommunication and Unicom relative times of the year, but Unicom purchase capacity is expected to double from 1 to 2 times. " The company officials told reporters. At the same time fiber price is in experienced since 2010 63 yuan -71 yuan / core kilometers fluctuations, at present basically stable at 68 yuan / core kilometers, prices remain strong.

In an optical fiber cable manufacturing industry chain, profit most embodied in the upstream of the preform preform links, links with the middle reaches of the fiber drawing and downstream cable manufacturing profit distribution ratio of approximately 7:2:1. Manufacture of optical fiber preform is base material, its manufacturing technology content is high, the equipment is complex, the larger the scale of investment, the market has long been overseas several big company monopoly. Only a few manufacturers have preform independent production capacity, nearly two years of preform import ratio is maintained at about 60%. While the photoelectric with R & D and production of preform, 2010 3 at the end of the official mass production with an annual output of 200 tons preform projects become an important competitive advantage. Although the company has an annual output of 300 tons of preform expansion project has not yet been formally implemented, but the company management layer expresses, preform production rate continues to increase, the first half of the year from 2011 to 50% to 60%-70%. After the CITIC Securities in a research report that, 50% of the preform production rate will save the company 40000000 of the cost. With the preform production rate of improvement, the company's overall gross margin has potential to improve.

In addition, the company in the submarine cable project is also a breakthrough. " We in Fujian Xiamen area already had several successful submarine cable project, 2012 is pilot production stage, estimated sales of only 300000000 to 400000000, the true scale of production should be in 2013. " The submarine cable ( especially deep submarine cable ) with high technology, gross profit is high, the amount of single orders is large, once obtained the technology and productivity breakthrough will provide a breakthrough for the company's performance. After the company has published a prospectus mass production of special photoelectric composite submarine cable and special cable plan. " In short, the management of the company on this and the short-term future performance is very optimistic, believe to be able to grasp the market opportunity. " Executives said the company.