Hengwei Technology (603496): The leader in network visualization, an autonomous and controllable practitioner


Hengwei Technology (603496): The leader in network visualization, an autonomous and controllable practitioner

Report Summary: The excellent team builds a solid foundation and high-growth emerging enterprise.

The founder’s ownership structure is conducive to the formation of a team.

The company 杭州桑拿网 has strong risk control capabilities. In the past five years, the asset-liability ratio has steadily decreased from 36 in 2014.

43% dropped to 17 in 2018.


The company’s operating cash flow is basically positive.

R & D expenditure and operating income have increased simultaneously, the gross profit margin of the network visualization infrastructure has remained at a high level of about 60%, and the gross profit margin of embedded and integrated computing platforms has steadily climbed, from 28 in 2014.

38% rose to 41 in 2018.


The leader of network visualization infrastructure, the expansion of customer scale effectively increases the company’s product demand.

The network visualization industry has benefited from the growth of network traffic, and the regulatory needs of network content and the understanding of information security will grow in the long term.

The industry’s competitive landscape is stable, the market size of participants has expanded, and high R & D investment has led to a high gross profit margin for the entire industry.

The company is positioned as a network visualization infrastructure provider, and its products are mainly oriented towards system integrators, while actively expanding industry customers.

Government-oriented integrators mainly include Fiberhome, Ten Telecom, etc. Operator-oriented integrators mainly include Hengan Jiaxin and Green Network. The expansion of system integrators has effectively increased the company’s product demand.

The benefits of big data applications and autonomous control for embedded and converged computing platforms.

Converged computing platforms benefit from the continued growth of big data applications. The big data industry has exceeded 10 billion pounds in 2015, and will grow to a scale of nearly 60 billion at a high growth rate of 38% in 2020.

Independently controllable to provide thrust for the company’s domestic products.

The company uses domestic independent processors such as Feiteng, Shengke, Godson, etc. as the core platform, and has completely independent intellectual property standards. The independently developed servers and switches have unique security.

As downstream demand for embedded and fusion based on domestic component development grows based on platform demand, this part of the company’s business will usher in huge industry space and significant growth levels.

Earnings Forecast: Expected 2019?
The net profit attributable to mothers will be 1 in 2021.

28, 1.

62, 2.

1.5 billion yuan, EPS is 0.

90, 1.


50 yuan, corresponding to the current total PE is 32.

96, 25.

98, 19.

65 times.

Give “overweight” rating.

Risk reminder: systemic risk; fluctuations in the demand for visualized landing on the network, industry customers’ development is less than expected; and demand for autonomous and controllable products is less than expected.