\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 83 Beijing Sinnet Technology Co.Ltd(300383) )
Events
The company issued the annual report of 21 years and the quarterly report of 22 years. In 2021, the company achieved an operating revenue of 7.7 billion yuan, a year-on-year increase of 2.99%; The net profit attributable to the parent company was 836 million yuan, a year-on-year decrease of 8.41%. In the first quarter of 2022, the company realized an operating revenue of 1.833 billion yuan, a year-on-year decrease of 6.49%; The net profit attributable to the parent company was 193 million yuan, a year-on-year decrease of 13.63%.
Our comments are as follows:
The company’s data center developed steadily and its core regional institutions continued to improve. External factors such as short-term epidemic have a certain negative impact on the company’s business, and we look forward to the elimination of external factors in the future. On the revenue side, the company’s IDC and value-added service revenue was 1.838 billion yuan in 2021, a year-on-year increase of 10.2%; IDC’s operating service revenue was 191 million yuan, a year-on-year increase of 6.34%; The revenue from cloud computing and related services was 5.591 billion yuan, a year-on-year increase of 0.85%; Internet broadband access revenue was 53 million yuan, down slightly by 3.63% year-on-year.
1) IDC business company’s core regional computer rooms are continuously delivered and put on the shelves. Fangshan phase I is delivered in full, and the listing rate is close to 80%. Fangshan phase II is expected to be delivered in 22q2, and Yanjiao phase III and IV have been partially put into operation; The main construction of Tianjin project is expected to be completed in 22 years; The first phase of Jiading project was fully delivered, and the second phase 21q4 was gradually put into operation and put on the shelves one after another; Hangzhou, Changsha and other projects are also continuing to advance.
2) as a regional operator of Amazon China (Beijing), cloud computing business has been successfully operated for 5 years, and unparalleled technology search advertising business has achieved steady development. 22q1 due to the adverse effects of the epidemic and industrial regulation policies, the revenue of cloud computing customers decreased, but increased compared with 21q4. In the future, external factors will be gradually eliminated, and the company’s cloud computing business is expected to continue to grow
Fixed costs such as fixed assets conversion after the new computer room is put into operation, shelf loading rate, depreciation in the climbing stage and period expenses increase, and the profit performance is weaker than the income growth. With the continuous improvement of the shelf rate of cabinets, the overall profitability of the company is expected to be further optimized.
The construction of machine rooms in the company’s key business areas such as Beijing, Tianjin, Hebei, Shanghai, Hangzhou and Changsha continued to advance. After the cabinets were put into operation and converted into fixed assets, it brought an increase in fixed costs such as depreciation and amortization, which had a certain impact on the gross profit margin. In 2021, the company’s overall gross profit margin was 20.61%, a year-on-year decrease of 0.49 percentage points, of which the gross profit margin of IDC value-added services was 53.62%, a year-on-year decrease of 1.23 percentage points, and the gross profit margin of cloud computing was 9.59%, a year-on-year decrease of 1.22 percentage points. In addition, while the company’s business continues to expand, the period expenses are still continuously invested, resulting in the growth performance of short-term profit is weaker than that of income. With the continuous improvement of the shelf rate of cabinets in key areas of the company in the future and the elimination of the impact of short-term external factors on cloud computing and other businesses, the overall profitability of the company is expected to be further optimized in the future.
The cash flow from operating activities is good, and the fixed assets are still in the investment period.
In 2021, the company’s net cash flow from operating activities was 1.441 billion yuan, which was basically the same year-on-year. The net cash flow from operating activities was significantly higher than the current profit, showing the company’s good cash flow collection ability. The cash paid for the construction of fixed assets, intangible assets and other long-term assets was 2.457 billion yuan, a significant increase from 1.12 billion yuan in 20 years. The construction of key IDC projects of the company continues to be promoted. In the future, with the gradual production of machine room cabinets, the medium and long-term growth foundation will be laid.
Profit forecast and investment suggestions
As a leading enterprise of China’s third-party data center, the company has obvious location advantages in the data center, and the continuous launch + shelf rate of IDC cabinets in the core area has been improved, laying the foundation for future growth. Cloud computing business has developed steadily, bringing incremental performance contribution. Due to the impact of incremental cabinet investment, epidemic situation and changes in industrial policies, the performance expectation of the company in 22-23 years is adjusted from 1.27 billion and 1.55 billion yuan to 940 million and 1.15 billion yuan. At the same time, the net profit attributable to the parent company in 24 years is expected to be 1.36 billion yuan, corresponding to 21 times of P / E in 22 years and 17 times of P / E in 23 years. The rating of “overweight” is reiterated.
Risk tips: IDC’s launch is less than expected, the progress of new projects is slower than expected, the industry competition is more than expected, the development of cloud computing is less than expected, and the risk of goodwill impairment
