\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 83 Beijing Sinnet Technology Co.Ltd(300383) )
Event: on April 21, the company disclosed the annual report of 2021. 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%; The net profit attributable to the parent company after deduction was 858 million yuan, a year-on-year decrease of 5.00%. In the fourth quarter of 2021, the company realized an operating revenue of 1.766 billion yuan, a year-on-year increase of 0.62%; The net profit attributable to the parent company was 152 million yuan, a year-on-year decrease of 34.15%. In the first quarter of 2022, the company achieved 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%.
Q1 business is impacted by the epidemic and its performance is under short-term pressure: the company's net profit attributable to parent company in 2021 is lower than that of the previous year. On the one hand, the expansion of the company's business scale in 2021, the increase of fixed costs such as the production and conversion of new data centers into fixed assets, depreciation and amortization, and the increase of period expenses. On the other hand, 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 relevant industries is reduced, In addition, in IDC business, due to the delay of business payment process of some customers that have been put on the shelves, the accrued expected loss is increased.
Continue to promote the construction of new cabinets and the implementation of low pue projects: in 2021, the company continued to promote the strategic layout of IDC, and promoted the data center business in Beijing, Tianjin and Hebei, the Yangtze River Delta, central China and Xinjiang. More than 45000 cabinets have been put into operation. According to the company's announcement, in Beijing Tianjin Hebei region, Fangshan phase I project has completed the customer delivery of all cabinets, and the shelf loading rate of cabinets is close to 80%. Fangshan phase II project has entered the electromechanical construction stage, and some cabinets of Yanjiao phase III and IV project have been put into operation. Shanghai Jiading phase I project has been fully delivered, and some cabinets of phase II project have been delivered to customers and put on shelves one after another. The project construction and production progress of 2022q1 company 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 continues to 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 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.
Eastern digital computing and Western computing boost medium and long-term demand, and the data center industry has broad development space: with the continuous development and application of AI, big data and cloud computing, the demand for computing power of cutting-edge technologies also drives the rapid expansion of the scale of Internet data center. In the future, under the background of "digital economy", "double carbon" goals and "counting East and west", the Internet data center industry is expected to optimize the pattern of the eastern region and the demand of the western region is expected to increase. According to Canalys survey, China's cloud computing infrastructure market revenue (IAAS+PAAS) reached 27 billion 400 million US dollars (174 billion 400 million RMB) in 2021, and its growth rate was 45%. The Chinese mainland's cloud infrastructure market will reach 85 billion US dollars by 2026, and the compound annual growth rate will reach 25% in five years. In 2021, the company's businesses progressed smoothly, Fangshan phase I, Yanjiao phase III and IV and Shanghai Jiading phase II were gradually put on the market, Tianjin Baodi project and Changsha project were successfully started, and the existing data center continued to carry out energy-saving transformation and optimization. In 2022, the company will continue to promote the construction and commissioning progress of projects under construction, promote the green energy conservation and emission reduction of data center, and strengthen the research and development of cloud computing business.
Investment suggestion: affected by the epidemic and the slowdown of cloud computing demand in the short term, the demand of the company is expected to be boosted in the medium and long term driven by the East West computing project. We lowered the company's profit forecast. It is estimated that the company's operating revenue in 2022 / 23 / 24 will be 8.08/90.4/10.18 billion yuan and the net profit attributable to the parent company will be 903/10.28/1.159 billion yuan. In combination with the medium and long-term demand growth of the data center industry and the company's historical valuation level, we give the company 23 times PE in 2022 and a six-month target price of 11.5 yuan, maintaining the "Buy-A" investment rating.
Risk tip: the demand for cloud computing is less than expected, the impact time of the epidemic is more than expected, the operating cost is rising, and the construction of Eastern digital Western computing is less than expected
