\u3000\u30 Jinzai Food Group Co.Ltd(003000) 65 Beijing Highlander Digital Technology Co.Ltd(300065) )
Event:
After closing on March 28, 2022, the company issued the announcement on signing service procurement contract for subsea data center.
Comments:
China initiated the submarine data center and signed a service procurement contract with atlas
Seabed Data Center (UDC) is one of the main directions of the company’s current transformation and innovation business. The company has formed UDC’s core technical capability through the acquisition of Ott ocean. Through the analysis and calculation of test data by the laboratory of Tsinghua University, the single cabin pue value of the company’s UDC test prototype is 1.076, which is far lower than the national standard. According to the announcement, the company’s holding subsidiary Shenzhen Hailan Cloud Data Center Technology Co., Ltd. and Singapore company atlastechnologymanagement Ltd. signed the first submarine data center service procurement contract in the overseas market through online electronic signature on March 28, 2022. Atlas purchased the server service of a data warehouse in the submarine data center from Hailan cloud. The service period is 5 years, and the service fee is RMB 29.45 million (excluding the server).
The business will expand to Singapore customers and will expand to more countries and regions in the future
According to the official website of atlas, the company is committed to providing services for the emerging Web3 0 ecology provides sustainable and stable distributed computing power. It has more than 100 employees in offices in 9 countries around the world. The management team comes from blockchain field, traditional finance, large energy groups and high-end manufacturing enterprises. The signing of this service procurement contract indicates the successful construction of the business model of overseas customers of the company’s subsea data center business, which has been expanded to Singapore companies and will expand to more countries and regions in the future. In the future, the company will continue to focus on the subsea data center business, consolidate technical barriers, explore diversified business models, and become the world’s leading comprehensive subsea data center service provider that can provide lower energy consumption and lower failure rate under the guidance of the national policy of “carbon peaking and carbon neutralization”.
Low pue technology leads the transformation of data center and opens the future growth space of the company
China’s IDC market presents a trend of rapid development. According to the data of Zhiyan consulting, in 2019, the market scale of IDC in China has reached 156.25 billion yuan. It is predicted that it will reach 314.53 billion yuan in 2022, and the market scale CAGR will reach 26.26% from 2019 to 2022. In October 2021, the national development and Reform Commission issued several opinions on strict energy efficiency constraints and promoting energy conservation and carbon reduction in key areas, which made it clear that the power utilization efficiency of new large and super large data centers should not exceed 1.3. The high power density, green energy conservation and other technical advantages of the subsea data center are expected to lead the transformation of the data center infrastructure, so that the energy consumption level of the entire IDC industry directly crosses the era of “carbon neutrality”, becoming a new highlight and trend of the industry. In recent years, the company has increased investment in the field of submarine data center and actively promoted the implementation of Hainan demonstration projects, with broad growth space in the future.
Profit forecast and investment suggestions
The company focuses on the field of ocean observation and intelligent navigation. In recent years, it has increased its layout in the field of seabed IDC, which is expected to open a new growth space. It is predicted that the operating revenue of the company from 2021 to 2023 will be RMB 1095, 1546 and 2436 million, the net profit attributable to the parent company will be RMB 75, 161 and 331 million, the EPS will be RMB 0.12, 0.26 and 0.52/share, and the corresponding PE will be 120.37, 56.40 and 27.44 times. In recent years, the company has actively expanded new business, with more investment and low net profit margin. It is more appropriate to adopt PS valuation method. In the past three years, the company’s PSTTM has mainly operated between 4-14 times, maintaining the company’s target PS of 10 times in 2022, with the corresponding target price of 24.55 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The business expansion of seabed IDC is less than expected; Goodwill impairment, etc.
