\u3000\u3 China Vanke Co.Ltd(000002) 602 Zhejiang Century Huatong Group Co.Ltd(002602) )
Event:
On March 11, Zhejiang Century Huatong Group Co.Ltd(002602) “Yifeng technology Guangming 5g big data center project” (hereinafter referred to as Shenzhen data center) officially started. The project plans to deploy 12000 cabinets, and Zhejiang Century Huatong Group Co.Ltd(002602) holds 50.1% of the equity of the project.
Comments:
The supply and demand gap of IDC in first tier cities has existed for a long time, which will become the focus of the layout of third-party IDC enterprises. The supply and demand of IDC in the first tier cities are upside down. The main customers on the demand side, cloud computing enterprises, Internet companies and financial enterprises, are mostly concentrated in the first tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen. However, due to the constraints of policies, land, electricity, network and other conditions on the supply side, the growth of IDC supply in the first tier cities is limited. This upside down of supply and demand, on the one hand, increases the scarcity of data center projects in first tier cities, thus increasing the rental price and project profit margin. On the other hand, it puts forward higher requirements for the government enterprise relationship, capital strength, construction standards (such as PUE) and operation and maintenance capacity of third-party IDC enterprises. Therefore, we believe that the layout density of data center projects in first tier cities will become an important indicator to consider the comprehensive strength and growth potential of third-party IDC enterprises. Zhejiang Century Huatong Group Co.Ltd(002602) has two children in Shanghai and Shenzhen. The Yangtze River Delta data center project in 2020 plans to operate 40000 cabinets. The Shenzhen data center project plans to build 12000 cabinets, and the data center projects in two first tier cities plan to build 52000 cabinets in total. Judging from the project scale (52000 cabinets) and layout area (first tier cities Shanghai and Shenzhen), with the continuous promotion of the data center project, Zhejiang Century Huatong Group Co.Ltd(002602) IDC data center is expected to rank among the first echelon of China’s third-party IDC industry.
The Shenzhen data center project has a large scale and high construction standards. After completion, it will become an important computing hub for Zhejiang Century Huatong Group Co.Ltd(002602) serving Dawan district. Shenzhen data center plans to deploy 12000 cabinets, which will be constructed according to the requirements of international standards uptime / Tier – Ⅳ, tier – Ⅲ and national standard gb50174 / class a machine room; In response to the call of the national “double carbon” policy, a large number of energy-saving equipment, cascade utilization of natural cold sources, recovery and self use of waste heat in the machine room, and dynamically adjust the control strategy to ensure that the average annual pue is less than 1.25. Shenzhen data center is committed to building a new generation of Advanced Computing Center, which is expected to become an important computing hub serving Dawan district.
Investment suggestion: maintain the “Buy-A” rating. The strength of the company’s cloud data division is further enhanced, and it is optimistic that IDC business will become the second growth curve. It is estimated that the operating revenue of the company from 2021 to 2023 will be 137.8/209.5/25.56 billion, the net profit attributable to the parent company will be 31.1/40.2/5.13 billion, and the corresponding EPS will be 0.42/0.54/0.69 yuan. Considering the valuation premium of the company’s A-share game leader, the corresponding 202218xpe valuation is given, corresponding to the 6-month target price of 9.72 yuan.
Risk warning: IDC construction cycle exceeds expectations; Risk of policy tightening in first tier cities; Customer change risk
