Incident: Recently, Mu Xi signed a strategic cooperation agreement with Aura Cloud and DiCui Intelligence, a subsidiary of Aura New Network, in Shanghai to target the emerging smart computing power market, deeply integrate with the industry, strengthen cooperation in the field of smart agriculture, and jointly build an ecosystem chain of smart agriculture application scenarios based on fully self-developed general-purpose GPUs.
Aura Cloud relies on the data center layout of Aura's new network, and a national computing power network has now been initially built. Guided by the country's vigorous development of new infrastructure and other computing power infrastructure policies in recent years, the company has built large-scale high-quality cloud computing center clusters nationwide, built a multi-cloud interconnection service system including public clouds, private clouds, hybrid clouds and various value-added services to provide high computing power, full-cycle green digital intelligent infrastructure support, and efficient and advanced multi-cloud connectivity solutions for various digital scenarios including agriculture and forestry. Mu Xi is gradually entering the GPU rendering market, covering application scenarios such as scientific computing, cloud gaming, digital twins, metaverse, and autonomous driving. It is particularly suitable for combination with Dicui's “smart agriculture and forestry+digital twin”. In the future, Mu Xi will work with Aura Cloud and Dicui Intelligence to make full use of the core advantages of all parties, work together to build new agricultural big data centers and intelligent computing power infrastructure for the industry, jointly enhance the GPU computing power resource capabilities of digital agriculture, and empower the digital transformation and upgrading of agriculture.
The decline in the company's operating performance in '22 was mainly affected by the epidemic and asset impairment, and we waited for the market to recover in '23. 1) The company's asset impairment preparations in '22 increased 1,383 million yuan over the same period of the previous year. Excluding the impact of the calculation of goodwill impairment preparations of 1,351 million yuan, the company's net profit attributable to shareholders of listed companies during the reporting period was 458 million yuan, a decrease of 45.20% over the same period last year. 2) Judging from the supply and demand situation in the IDC industry, due to the rapid increase in supply in the short term and the potential shortage of energy on the demand side, the IDC industry is generally facing a market situation where customers return rent and reduce prices.
3) SaaS services provided by subsidiary Wushuang Technology have been affected by relevant national industry policies and the epidemic, and the cloud service requirements and budgets of customers related to the real estate, tourism, education and other industries it serves have been drastically reduced.
Investment advice: Based on the company's latest financial data and industry supply and demand, we adjusted the company's profit forecast and predicted that the company's net profit from 2023-2025 would be 668, 838, and 1,048 million yuan. Pressure such as the short-term epidemic is obvious, but the long-term value of the company's core data center assets will not change, maintaining the “buy” rating.
Risk warning: IDC market demand growth falls short of expectations; competition in the IDC market intensifies; cloud computing demand falls short of expectations.