Incident: On April 27, Data Port released its report for the first quarter of 2023. In the first quarter of 2023, the company achieved revenue of 372 million yuan, +8.61% year on year; it achieved net profit of 35 million yuan to the mother, +241.96% year on year.
Q1 Profits grew rapidly, and profitability improved markedly. In the first quarter of 2023, the company achieved revenue of 372 million yuan, +8.61% year on year; achieved net profit of 35 million yuan to the mother, +241.96% year on year. The marked increase in performance was mainly due to the increase in operating income generated by the delivered projects. Looking at gross margin, the company's gross margin in 2023Q1 was 29.38%, +17.04pct over the previous year. Looking at the cost side, 2023Q1's period expenses were 69 million yuan, compared to -7.80% compared to the previous year. Among them, sales expenses, management expenses, financial expenses, and R&D expenses were 0.01/0.13/0.35/20 billion yuan respectively, and +1.46%/-18.81%/-19.11%/+36.54%, respectively; the cost ratio for the period was 18.48%, compared to -3.29pct. Among them, sales expenses, management expenses, financial expenses, and R&D expenses ratios were 0.18%/3.56% /9.30 respectively %/ 5.44%, year-on-year -0.01/-1.21/-3.19/1.11pct, respectively.
Deeply involved in data center services, and the ability has been recognized by customers. 1) IDC business: Data center server hosting service, mainly divided into two models: wholesale and retail. The wholesale type targets large Internet companies and telecom operators, including customized services such as data center planning, design, and operation service level requirements. The retail type targets customers such as small and medium-sized Internet companies and general enterprises, including standardized server hosting services and network bandwidth services. 2) IDC Solution Business: Responsible for end-to-end services from planning to delivery, including design consulting, project management, etc. 3) Cloud service sales business: The company thoroughly understands the characteristics and applicability of various cloud services and products, and sells cloud services according to customer needs. With efficient execution, excellent technology and rich experience, the company gained advantages in the full life cycle management of data centers, became one of the few professional service providers recognized by world-class Internet companies, and obtained a large number of long-term contracts.
The energy consumption management and control capabilities are outstanding and are expected to benefit from the development of green data centers. In November 2021, China's four ministries and commissions issued implementation plans to promote the green and high-quality development of new infrastructure such as data centers and 5G.
By 2025, the energy efficiency of large-scale data centers will drop below 1.3, and the green low carbon grade will reach grade 4A or higher. The company's energy consumption management and control capabilities are particularly outstanding. The annual minimum PUE for operating data centers nationwide can reach 1.09, reaching the leading international level. We believe that from the perspective of increasing energy consumption requirements in policies and cloud vendors themselves reducing costs and increasing efficiency, the company is expected to achieve continuous growth with excellent energy consumption management and control capabilities.
Profit forecast and investment rating: We expect the company's net profit to be 155/188/221 million yuan in 2023-2025. The current stock price corresponding to PE is 73.6/61.0/51.9 times respectively. We continue to be optimistic about the steady growth of the company's future performance and maintain the “buy” rating.
Risk warning: the risk of high customer concentration, the risk of increased market competition, the risk of industrial policy changes, and the risk of project delivery falling short of expectations.