\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 83 Beijing Sinnet Technology Co.Ltd(300383) )
Company announcement: the company released the annual report and the first quarterly report of 2021. The annual revenue was 7.7 billion yuan, a year-on-year increase of 2.99%, and the net profit attributable to the parent was 836 million yuan, a year-on-year decrease of 8.41%. In Q1 2022, the revenue was 1.833 billion yuan, a year-on-year decrease of 6.49%, a month on month increase of 3.80%, and the net profit attributable to the parent company was 193 million yuan, a year-on-year decrease of 12.63% and a month on month increase of 27.04%.
The epidemic affected the demand and delivery on the shelves and improved month on month in the first quarter. In 2021, under the adverse effects of the epidemic, the rectification of Internet platforms and the “double reduction” of the education industry, the company’s cloud computing and data center business revenue achieved steady growth. In terms of business, cloud computing achieved a revenue of 5.591 billion yuan in the whole year, with a year-on-year increase of 0.85%, of which the number of AWS customers increased significantly and the revenue increased steadily. The unparalleled technology SaaS business was greatly affected by the outside world. IDC and value-added business revenue was 1.838 billion yuan, a year-on-year increase of 10.17%, and IDC operation service revenue was 192 million yuan, a year-on-year increase of 6.53%. The comprehensive gross profit margin was 20.61%, with a year-on-year decrease of 0.49 PCT, of which cloud computing was 9.59%, with a year-on-year decrease of 1.22 PCT, IDC and value-added services were 53.62%, with a year-on-year decrease of 1.23 PCT, IDC operation services were 18.95%, with a year-on-year increase of 5.97 PCT. The overall gross profit margin decline was mainly affected by the increase of fixed costs such as depreciation and amortization caused by the production and fixed assets conversion of the company’s new data center, and the rise of Q4 electricity charges. The provision for bad debts caused by the deferred payment of some IDC customers that have been put on the shelves has a certain impact on the annual performance. In 2022q1, the company maintained steady operation, with revenue and profit increasing month on month.
Focus on the first-line core areas and increase the layout of data centers. The company’s data center business continues to make efforts in the layout of first-line, ring first-line and emerging cities. By the end of 2021, 12 computer rooms were arranged around the core city area, with a total of 43000 cabinets put into operation, and the user listing rate exceeded 70%. The scale of operation and reserve racks is nearly 100000, which is expected to be gradually introduced to the market in the next five years. Among them, Fangshan phase I project has delivered all cabinets to customers, and the shelf rate of cabinets is close to 80%. Fangshan phase II project is partially sold and has entered the electromechanical construction stage. It is expected to be delivered to customers in 2022q2. Some cabinets of Yanjiao phase III and IV project have been put into operation. The first phase of Tianjin Baodi project was successfully started in November 2021. It is expected to complete the main construction of two data center buildings in 2022. In the future, it will be able to provide highly customized and scalable data center services for users in Beijing, Tianjin and Hebei. Shanghai Jiading project has a service capacity of 10000 cabinets, of which the first phase has been delivered for use, the second phase has been gradually put into operation since 2021q4, and some cabinets have been delivered to customers and put on shelves one after another. Hangzhou and Changsha projects have also entered the construction stage. The company cooperates with China Telecom Corporation Limited(601728) to build the data center computer room in Urumqi and explore the business market in the western region. At the same time, the company responded to the development concept of green data center, promoted the energy-saving transformation of data center, cooperated with Beijing Highlander Digital Technology Co.Ltd(300065) and participated in the construction of Hainan’s first commercial submarine data center demonstration project in the world.
The public cloud business grew steadily, and Advantech industrial cloud business was fully implemented. China’s cloud infrastructure has maintained steady growth. In the short term, the public cloud will be affected by the regulation of Internet platforms and macro-economy. In the medium and long term, cloud computing still has broad development prospects. The company’s AWS public cloud business continues to grow. Halo Youyun continues to provide users with cloud computing based value-added services such as consulting, deployment, migration, operation and maintenance hosting in a multi cloud environment with Amazon public cloud as the core. At present, it has served many major customers and industries. In 2021, the revenue of halo cloud reached 250 million, with a year-on-year increase of 139%. Private cloud business is greatly affected by the double reduction policy of education and the epidemic. At the same time, some private cloud customers are transferred to public cloud or self built data centers. In March 2021, it signed a strategic cooperation agreement with Advantech and an Advantech industrial cloud operation cooperation agreement. Under the authorization and technical support of Advantech, halo cloud data is independently responsible for the operation of wise PAAS industrial Internet of things cloud service business and wise marketplace application store business in China. By clouding the business, more enterprises can easily realize low code application development according to their own needs, and accelerate the process of enterprise digital transformation. “
Investment suggestion: Beijing Sinnet Technology Co.Ltd(300383) data center is arranged in the first tier cities and surrounding areas, the scale of operation cabinet is large, and the data center is arranged nationwide by increasing the code. Cloud computing undertakes AWS China business, and its subsidiaries improve the localized delivery and service capacity of cloud computing and strengthen market-oriented expansion. Affected by the epidemic and double reduction, the pace of business development of the company has been adjusted. We adjusted the profit forecast of the company. It is estimated that the net profit of the company from 2022 to 2024 will be 978 million yuan, 1.172 billion yuan and 1.401 billion yuan respectively (originally predicted to be 1.169 billion yuan and 1.380 billion yuan from 2022 to 2023), and the corresponding EPS will be 0.54 yuan, 0.65 yuan and 0.78 yuan respectively, maintaining the “buy” rating.
Risk prompt event: the risk of intensified industry competition; IDC business and cloud computing business grew less than expected; Risk of loss of contracted customers, risk of changes in industrial policies, etc
