Kehua Data Co.Ltd(002335) (002335)
The data center business has excellent customer resources and binds Tencent to further deepen cooperation: according to Kezhi consulting data, under the background of the surge of data traffic and the improvement of the popularity of cloud computing, edge computing and other technologies, the market scale of China’s data center is expected to reach 248.6 billion yuan in 2021. According to the company’s semi annual report, by the end of June 2021, the company has 7 large self built data centers in Beijing, Shanghai, Guangzhou and other places, with about 29000 operating cabinets. The total construction area of the company’s data center exceeds 200000 square meters, and its customers cover three major operators, large Internet enterprises such as Tencent, major financial institutions and government agencies. In the next three years, the company will steadily expand the scale of the data center and plans to add more than 10000 self built cabinets every year. The company has carried out in-depth cooperation with Tencent in terms of product development, EPC Construction, operation and maintenance, cloud service sales, etc. the jointly developed T-block products have been widely used in Tencent’s data center requirements. According to the company’s announcement, in 2020, the company signed a construction agreement of RMB 1.17 billion with Tencent cloud computing company and won the bid for 500 sets of MDC centralized procurement project of Tencent Technology (Shenzhen). The company will enter the performance release period with the construction of Tencent data center.
UPS is the leader in China, with outstanding performance in multiple segments: benefiting from the rapid development of information infrastructure such as China’s data center, according to ccwresearch data, the scale of China’s UPS market is expected to reach 13.22 billion yuan in 2025. According to the company’s annual report, in the field of communication, The company won the bid for China Mobile’s double package centralized procurement project of high-power high-frequency machines and modular UPS products (a total of about 111 million yuan); in the financial field, the company’s customers include six state-owned banks and financial institutions such as securities and insurance. In 2020 Kehua Data Co.Ltd(002335) UPS ranks first in the market share of China’s financial industry; In the industrial field, the company provides smart energy comprehensive management solutions for customers such as SMIC north and Hengdian group; In the field of rail transit, the company’s products are applied to more than 40 cities and more than 110 subway lines in China. In 2020, the company independently developed ultra-high power 1.2MVA modular UPS, and the single-mode group power reached 133kw / 200kW. According to CCW research data, in 2020, the company’s market share was 14.9%, ranking first in China’s UPS market.
The new energy business continues to develop and the revenue growth rate reaches a new high: ihsmarkit predicts that the global photovoltaic inverter market will reach 187gw in 2021, 401gw in 2025 and 21.0% in CArG. According to our calculation, the global energy storage inverter market space will reach 13.5 billion yuan in 2021. According to cnesa and woodmackenzie data, in 2020, the global market share of the company’s photovoltaic inverter is 2%, and the Chinese market share of energy storage business is 5%. In the Chinese market, the company ranks second among the suppliers of energy storage converters; In the overseas market, the company ranks third among the suppliers of energy storage converters. According to the semi annual report of the company, in the first half of 2021, the company launched a new generation of 1500v350kw series inverter solution in the world, which is the series inverter with the largest single unit power in the world. At present, the company’s global installed capacity of energy storage has exceeded 1.1gw, and has been selected as the global top 500 new energy enterprises for six consecutive years. In the first half of 2021, the new energy business achieved an operating revenue of 300 million yuan, a year-on-year increase of + 85.39%. It is expected that the new energy business will continue to be large-scale in the future, injecting new vitality into the development of the company.
Investment suggestion: the company continues to explore new fields, and the three major businesses grow strongly. We estimate that the company’s operating revenue from 2021 to 2023 will be 5.382 billion yuan (+ 29.1%), 6.973 billion yuan (+ 29.6%) and 9.199 billion yuan (+ 31.9%) respectively; The expected net profit attributable to the parent company is 481 million yuan (+ 25.9%), 637 million yuan (+ 32.5%) and 836 million yuan (+ 31.3%) respectively. We estimate that the target market value of the company in 2022 will be 19.726 billion yuan, corresponding to pe30.0 billion yuan in 2022 97 times, corresponding to the target price of 42.73 yuan in 2022. For the first time, it is given a “Buy-A” investment rating.
Risk tips: the construction of data center is less than expected, the market competition is intensified, the accounts receivable is increased, the overseas development of new energy business is less than expected, the holdings of major shareholders are reduced, and the assumptions are less than expected
