\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 83 Beijing Sinnet Technology Co.Ltd(300383) )
Event: on April 21, 2021, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 7.7 billion yuan, a year-on-year increase of 2.99%, and a net profit attributable to the parent company of 836 million yuan, a year-on-year decrease of 8.41%; In the first quarter of 2022, the company achieved a revenue of 1.833 billion yuan, a year-on-year decrease of 6.49%, and a net profit attributable to the parent company of 193 million yuan, a year-on-year decrease of 13.63%.
Comments:
Affected by the epidemic, IDC's profitability is relatively stable as a whole, with growth month on month
According to the company's announcement, IDC and its value-added services achieved a revenue of 1.838 billion yuan in 2021, with a year-on-year increase of 10.19% and a gross profit margin of 53.62%, which remained basically stable. By the end of 2021, the number of cabinets put into operation by the company has exceeded 43000, and the shelf rate of users has exceeded 70%; In 2021, the cloud computing business achieved a revenue of 5.591 billion yuan, a year-on-year increase of 0.85% and a gross profit margin of 9.59%.
The company's net profit attributable to the parent company declined in 2021. On the one hand, with the expansion of the company's business scale, the new data center was put into operation and converted to fixed assets, resulting in the increase of fixed costs such as depreciation and amortization and the increase of period expenses. At the same time, in IDC business, the expected loss accrued increased due to the delay of business payment process of some customers that have been put on the shelf; In addition, in 2021, due to the covid-19 epidemic, the "double reduction" in the education industry and the real estate regulation policies, the revenue of cloud computing customers in related industries decreased.
According to the company's announcement, the company's Q1 performance in 2022 decreased year-on-year, but achieved a certain growth month on month. In 2022, Q1 revenue increased by 3.8% month on month, and net profit attributable to the parent company increased by 27.04% month on month. The first quarter was greatly affected by the epidemic. On the one hand, due to the adverse impact of covid-19 epidemic and industrial regulation policies, the cloud computing revenue of customers in relevant industries decreased. The company continued to explore new market customers and further increased R & D efforts. The cloud computing business revenue increased step by step compared with the fourth quarter of last year; The construction and production progress of the company's projects in Shanghai, Tianjin, Yanjiao and Changsha are affected by the epidemic control policies to varying degrees, especially the Hebei Yanjiao project and Shanghai Jiading project. The company actively takes response measures. With the gradual improvement of the epidemic, the listing rate is expected to increase gradually in the future.
Consolidate the core location layout, and the long-term cabinet capacity will be gradually put into operation due to the impact of the epidemic in the short term
The strategic development plan of the company is clear. Based on the core assets of front-line and surrounding IDC, the company will build IDC industrial clusters along the core areas such as Beijing Tianjin Hebei, Yangtze River Delta and Pearl River Delta in the future, and adhere to the mode of self owned property and self built computer room in the core areas. By the first quarter of 2022, the company had put into operation more than 45000 cabinets and reserved nearly 100000 racks in Beijing, Tianjin, Hebei, Yangtze River Delta, central China and Xinjiang.
(I) Beijing Tianjin Hebei region: 1) Fangshan, Beijing: by the end of 2021, Fangshan phase I project has completed the customer delivery of all cabinets within the reporting period, and the shelf rate of cabinets is close to 80%; Some cabinets of Fangshan phase II project have reached cooperation intentions with users and entered the electromechanical construction stage. It is expected to be delivered to customers in the second quarter of 2022.
2) Yanjiao phase III and IV around Beijing: by the end of 2021, some cabinets of Yanjiao phase III and IV project have been put into operation.
3) Tianjin Baodi: it has acquired 368 mu of industrial land in Tianjin Baodi by means of M & A. the first phase of the project plans to build 5000 5kW 2n standard cabinets with a total investment of about 108million yuan. It was successfully started in November 2021. It is expected to complete the construction of two data center buildings in 2022.
(II) Yangtze River Delta economic demonstration zone: 1) Shanghai Jiading: by the end of 2021, the first phase of the project has been put into use, and the second phase of the project has been put into operation gradually since the fourth quarter of 2021. At present, cooperation intentions have been reached with many users, and some cabinets have been delivered to customers and put on shelves one after another. Affected by the epidemic situation in Shanghai, the Jiading project in Shanghai is still in the state of comprehensive closed control, and the phase II project is in the state of shutdown. The resumption time will be determined according to the development of the epidemic situation and the requirements of the government. The shelf progress of the contracted cabinets of the project and the delivery time of subsequent works will be affected.
2) Changsha Project: the project was started in December 2021 and can provide 16000 cabinet services after completion. In December 2021, the company and China Telecom Corporation Limited(601728) Hunan Branch signed the agreement on co construction and cooperation of Beijing Sinnet Technology Co.Ltd(300383) cooperative computer room of Hunan Telecom. Based on the principles of aggregation and innovation, mutual benefit and win-win cooperation, the two sides will establish long-term, comprehensive and in-depth cooperation in IDC construction, operation and maintenance, marketing development and other aspects.
3) Hangzhou, Zhejiang: the company launched the Hangzhou digital economy science and Innovation Center Project in April 2021. The project is a key project of Hangzhou, a national integrated big data center, a national hub node project in the Yangtze River Delta and a demonstration project of East digital West computing. It is planned to build 100006kW 2n standard cabinets with a total investment of about 3.2 billion yuan. By the end of 2021, the construction land of the project has been determined, and the preparatory work before construction is being actively carried out. It is planned to start construction in 2022.
(III) Hainan: in cooperation with Beijing Highlander Digital Technology Co.Ltd(300065) science and technology, the two sides have established a joint venture in Hainan to jointly promote the pilot implementation of submarine data center project.
(IV) Xinjiang: cooperate with China Telecom Corporation Limited(601728) Urumqi company to build data center computer room in Urumqi, Xinjiang, and further explore the business market in the western region. By the end of 2021, the project is progressing steadily.
Actively implement the national strategy of "carbon peaking and carbon neutralization", and constantly strengthen the construction of operation and maintenance system
In the context of the national strategic goal of "carbon peaking and carbon neutralization", the core first tier cities led by Beijing, Shanghai, Guangzhou and Shenzhen have launched energy-saving and emission reduction policies to strictly control the energy consumption level of IDC, and put forward higher requirements for the tax paying capacity of new data center projects. On the basis of the total energy consumption limit, vigorously promote the construction of green data center, control the core land indicators, and put forward the "double carbon" goal, It also highlights the importance of operation capability for IDC enterprises.
The company continued to build and operate a green data center. On the one hand, in response to the government's call, the company organized Jiuxianqiao, Taihe bridge, Fangshan, Yanjiao, Jiading and other data centers to actively participate in the government's online monitoring of energy consumption and energy-saving audit; On the other hand, we will continue to seek solutions in the operation of the data center, optimize and adjust the structure of the refrigeration system of the old machine room, eliminate the old equipment, and adopt high-efficiency and energy-saving equipment to improve the refrigeration efficiency and reduce pue. At present, the first stage of transformation has been completed, and the refrigeration efficiency has been increased by 20%; At the same time, through the new distributed photovoltaic power generation, constant frequency refrigerator, frequency conversion function, intelligent energy-saving lamp transformation and other projects, reduce the use of electric energy and reduce the operation and maintenance cost. In the daily maintenance work, according to the actual operation of the machine room, increase the water supply temperature of the refrigeration system, optimize the system control logic and parameter settings, prolong the service time of the natural cold source and reduce the energy consumption of the refrigeration system. In March 2022, the Beijing Municipal Bureau of economy and information technology released the "list of the second batch of Beijing specialized special new 'little giant' enterprises in 2021", and the company was successfully selected into the list of Beijing specialized special new 'little giant' enterprises.
Profit forecast and investment rating
The bottom driving force of IDC is the growth of traffic, which has the attributes of high growth and high certainty. The company has a large-scale IDC layout in the front line. We are optimistic about the long-term growth of the company. It is estimated that the net profit of the company from 2022 to 2024 will be 866 million yuan, 909 million yuan and 1.019 billion yuan respectively. The current share price corresponding to PE is 22.91 times, 21.81 times and 19.45 times, maintaining the "buy" rating.
Risk factors
5g development was not as expected, IDC construction and shelves were not as expected, and covid-19 epidemic spread
