Hengtong Optoelectronics Will Have 600-900 Tons Of Preform Capacity in Two Years

12/1/2010, Minsheng Securities, within two years, the total capacity of Hengtong Optoelectronics (600487. SS) optical fiber preform will reach 600-900 tons, ranking among the forefront of the industry. The company is a leading cable manufacturer in China, with a complete industrial chain from optical fiber preform to optical fiber and optical cable. The optical fiber preform project built with raised funds in the early stage was put into operation in March 2010 and formally put into production in June, reaching a capacity of 200 tons/year. It is estimated that 150 tons of output will be achieved this year. We saw in the survey that next to the first phase of the light bar factory, a new light bar factory is under construction, and the structure has been built. After the second phase is completed, it is estimated that the company will achieve an annual production capacity of 600 tons. At present, the company can produce 33000 core kilometers of optical fiber per ton of optical rod, which will eventually meet the production demand of 20 million core kilometers of optical fiber.

Entering the international optical fiber preform market

In June 2010, the company decided to establish a Sino US joint venture with the international well-known enterprise OFSFITEL, LLC to produce optical fiber preforms. Different from the joint venture cooperation with other domestic light rod manufacturers, Hengtong Optoelectronics has its own technology, so there is no harsh cooperation conditions and high equipment import costs, which is a mutually beneficial and equal cooperation. It is estimated that the construction period will be 2 years and the production capacity will be 200-300 tons. This cooperation can not only enable the company to enter the international optical fiber preform market and participate in international competition, but also improve the company's technical level.

The position of optical fiber in the industry has been consolidated. It is increasing its capacity at the rate of more than 20% per year. In 2009, the company's optical fiber capacity was 10 million core kilometers per year, and currently it is 12 million core kilometers per year. It has 12 wire drawing towers. In the optical fiber factory building, we can see that the new wire drawing tower facilities are under construction. If the construction period is 9 months, we expect that the production period should be from May to June in 2011. From the perspective of the production site, it is estimated that the optical fiber production capacity will eventually reach 20 million core kilometers, which will match the production capacity of 600 tons of light rods. It can be seen that light rods can achieve self-sufficiency.

Independent R&D technology has cost advantage

Compared with peers, the input of each tower of wire drawing tower is saved by 60%, and the production capacity is 25% higher. The company attaches great importance to the cultivation of independent innovation ability. The independent research and development of technology and process flow not only improve the production efficiency of the company, but also obtain cost advantages and profit advantages higher than the industry.

From the perspective of wire drawing tower, peer enterprises need more than 30 million yuan per tower for imported wire drawing equipment, and achieve a capacity of more than 800000 core kilometers per year; Through the optimization of independent technology and process flow, Hengtong Optoelectronics can obtain the production capacity of more than 1 million core kilometers per tower per year at a cost of more than 10 million yuan. From the perspective of Guangbang, peer enterprises need to invest more than 200 million yuan for every 100 tons of production capacity; The company only needs 150 million yuan to realize.