\u3000\u3 Shengda Resources Co.Ltd(000603) 881 Shanghai Athub Co.Ltd(603881) )
Event: the company released its annual report for 2021 on March 17. In 2021, the company realized an operating revenue of 1.206 billion yuan, a year-on-year increase of 32.55%; The profit before interest, tax, depreciation and amortization (EBITDA) was about 816 million yuan, with a year-on-year increase of 50.83%; The net profit attributable to the parent company was about 111 million yuan, a year-on-year decrease of 18.59%, mainly due to the company’s new large-scale data center, resulting in a large short-term increase in fixed assets and their depreciation.
Revenue growth accelerated and business quality continued to improve. Relying on its excellent construction and delivery ability, operation and maintenance management ability and rapid response ability, the company actively cooperates with the rapid subordinates of large-scale customer business. With the gradual improvement of the business demand of end customers, the data center cabinet that has been put into operation in the early stage of the company is gradually powered on, thus realizing the rapid growth of revenue. In 2021, the company achieved an operating revenue of 1.206 billion yuan, with a year-on-year increase of 32.55%, mainly due to the year-on-year increase of 37.31% in the revenue of IDC service industry, whose business accounts for 99.79%. With the company’s performance and subsequent delivery of the data center, it can be delivered steadily in the future.
The growth rate of EBITDA reached about 50%, and the EBITDA margin and gross profit margin continued to improve. The company’s operation mode is asset oriented, and its EBITDA has maintained rapid growth for many years. In 2021, the company achieved EBITDA of 816 million yuan, a year-on-year increase of 50.83%; The corresponding EBITDA margin was 67.66%, with a year-on-year increase of 8.20pcts. We believe that the rapid growth of EBITDA is due to the improvement of the shelf rate of the cabinet on the one hand and the electricity pricing mode of separation of rent and electricity on the other hand. The company’s gross profit margin is expected to be 33.09% as IDC’s gross profit margin and IDC’s gross profit margin for the management of the cabinet industry continue to rise to 33.08% in 2021, of which IDC’s gross profit margin is expected to increase steadily, and IDC’s gross profit margin for the management of the cabinet industry is expected to be 56.08%.
The order delivery volume reached a record high and the operation scale expanded rapidly. Since 2018, the company has successively undertaken the construction and operation demand orders of mass customization data center projects such as hb33 and jn13. Since 2019, the delivery volume of the company’s main business data center projects has increased year by year, and all the delivery projects have been highly appreciated by customers. In 2021, the company added 8 self built data centers with operation conditions, and the new it load was about 102.42 MW; By the end of 2021, the company had built and operated 33 data centers, with a total it load of about 352.72 megawatts (MW), an increase of 418% compared with 68.1 megawatts (MW) at the end of 2018, which was converted into about 705445kW (kw) standard cabinets, further establishing the company’s leading position in the IDC industry.
Layout high-quality project resources and rich project reserves. With the rapid expansion of the company’s main business scale, the company has gradually realized the strategic layout in East China, North China and South China in recent years. On this basis, the company makes full use of its core competitive advantages, closely follows the national data center layout planning guidance of “counting from east to West”, actively explores market acquisition and other ways to achieve epitaxial development, and continues to expand and accumulate data center resources in core cities. In 2021, the company completed the 100% equity acquisition of Jingyun technology and its subsidiaries, and obtained the land use right of about 50 mu in the emerging industry demonstration zone of anci District, Langfang City, Hebei Province, in preparation for data center business expansion in this region. This is also another important strategic layout of the company in the capital economic circle after Beijing Fangshan and Hebei Huailai data center projects, which helps to accelerate the realization of the company’s strategic resource reserve in China’s first-line core areas and provide digital assistance for the coordinated development of the three urban belts of the Yangtze River Delta, Beijing Tianjin Hebei and Dawan district. At present, the company reserves large-scale projects such as Shanghai Minhang hybrid cloud Park project, Hebei Huailai China United Network Communications Limited(600050) project and Hebei Langfang acquisition project. The above projects are continuously promoted according to the original plan and will bring continuous revenue to the company in the future.
Investment suggestion: as the industry leader of wholesale IDC operators, the company continues to layout IDC resources in China’s first-line core areas, with rich project reserves and high-quality core assets. Its performance is expected to continue to improve in the future. We expect that the company’s revenue from 2022 to 2024 will be 1.388/16.67/2.084 billion yuan, net profit will be 2.17/2.77/403 billion yuan and corresponding EPS will be 0.66/0.84/1.22 yuan respectively, with outstanding growth. Give 53 times PE in 2022, corresponding to the 12-month target price of 44.52 yuan, and maintain the investment rating of overweight-a.
Risk warning: the risk of high customer concentration, the risk of intensified industry competition, the risk of industrial policy change, the risk of project construction and delivery falling short of expectations, and the risk of epidemic affecting project progress
