Fujian Star-Net Communication Co. Ltd.

[Barefoot]

At the Apple thread, discussion is going on about IoT application in smart home. This company has its prototype framework and products for its concept of a smart home. The work is done under their subsidiary called 星网天合智能科技有限公司 and the brand of their framework is called LONworks. Currently, I do not see any analysis discussing its strengths and weaknesses. However, they have company like Baidu working at the AI aspect. Lonworks is the smart home system chosen by Dubai Tower, currently the world tallest building.

The link is the subsidiary website.
http://www.qianjia.com/special/smarthomecn/sh-2014025/

[Barefoot]

hi barefoot,
In accounting terms, we don't really use the word "income". Rather, we use "revenue", "net profit" and "cash flow" etc...."Revenue" is what is recognized as per accounting principles when there is an exchange of goods (invoicing done). "Net Profit" is the profit on paper after accounting for all expenses/depreciation/taxes. "Cash flow" (not free cash flow) is the cash flow after working capital changes (but before accounting for investing activities like CAPEX or financing activities like loan payments/new loans).

I don't have a good study on this company, so i just take a look at the screenshot u provided. For the last 3 years, it seems revenue, EBITBA and net profit is increasing. But "cash flow per share" ("mei gu xian jin liu") has decreased from 1.71 in 2015 to 0.48 in 2017. This seems to correlate to what OPMI means - that is, although the company is selling more (revenue) and earning more (EBITDA/net profit) is increasing, but cash flow per share is decreasing and the easiest guess for this reason is that most of these are nested in trade receivables (ie. money invoiced but not collected yet).

I went back to the 2017 annual report and found their explanation for the decrease of cash flow per share in 2017. They provide the reason: 1)Remuneration for employees increase this year. Tax is increased compare with previous year. 3) It also uses cash to buy shares from minority holders from two of its subsidiaries.

It is not due to impaired or delayed trade receivables. I know it buy back shares from its subsidiaries in 2017 and this should be the main reason.

Original explanation in chinese:
1、经营活动产生的现金流量净额较上年减少，主要系本期支付的职工薪酬费用和税金较上年增加所 致；2、投资活动产生的现金流量净额较上年增加，主要系本期收回的理财产品款较上年多，且本期收到 了处置子公司股权的部分对价款；3、筹资活动产生的现金流量净额较上年减少，系本期支付了购买子公 司少数股东股权的现金对价款，而上期无此类业务。

[Barefoot]

Company just announced it won the bidding for China Post cloud data centre project. The chinese language announcement is already on their website, the English version should be out soon. The link is
http://www.ruijie.com.cn/fa/xw-jr/83141/

Note that this company does not announce all winning bids, only selectively. Judging from the bids it has won in recent months, we think its market share in the ethernet switches should have already significantly increased placing it probably just behind Huawei and H3C in China.

[Barefoot]

In English.
https://www.ruijienetworks.com/about/news/75157

[Barefoot]

I read from their website that they have made major breakthrough in December 2018 winning major government projects from South Korea in postal service, military and traffic.

[Barefoot]

Any technical analysis expert around?  I really know nothing about TA but read that this counter is about to breakout. Foreign institution has increased the holding from around 1% to over 5% in a span of last three months, adding gradually almost everyday. They bought their shares thru UBS (HK).

[weijian]

hi Barefoot,
As the name of this forum suggests, we don't talk about TA over here. Do take note.

Moderator

[dreamybear]

The company name is 星网锐捷. As far as I know, this is the only discussion of this company in English. You can find chinese companies stats in sina finance just like you can find american stocks info in yahoo finance. Here is one such location.

http://finance.sina.com.cn/realstock/com...6/nc.shtml

I found an Eng website(somewhat similar to aastocks format) : http://www.cninfo.com.cn/cninfo-new/snap...ode=002396

Hope it helps those of us who are more familiar to Eng. However, the detailed breakdown of its assets and liabilities are unavailable....

Hopefully one day chinese companies can publish pdf type of AR for investors ....

[Barefoot]

The company name is 星网锐捷. As far as I know, this is the only discussion of this company in English. You can find chinese companies stats in sina finance just like you can find american stocks info in yahoo finance. Here is one such location.

http://finance.sina.com.cn/realstock/com...6/nc.shtml

I found an Eng website(somewhat similar to aastocks format) : http://www.cninfo.com.cn/cninfo-new/snap...ode=002396

Hope it helps those of us who are more familiar to Eng. However, the detailed breakdown of its assets and liabilities are unavailable....

Hopefully one day chinese companies can publish pdf type of AR for investors ....

I think the EPS is not adjusted in this site. This company has never have a declining year. I have pdf research for this company but it is in chinese if you are keen. NEC Singapore is their representative for wi-fi solutions or virtual PC in Singapore. They have a full subsidiary in Malaysia. University of malaysia uses their campus wi-fi solution.

[Barefoot]

2018 financial report will only be out in March. Internally, they have already announced and celebrated the milestone of reaching revenue of 10 billions. Net profit is expected to grow around 50% over 2017. Company is setting 50 billions revenue as the next target. This is a company that do not over-promise but under deliver and is usually very conservative about what they say.

The link are photos for their annual event
http://weixin.star-net.cn/dy/2018nh/live/index.php