Event: positive progress has been made in the reorganization of the company's major assets, and the rental business of machine counters in the underlying asset "Zhongjing Yun" data center is being carried out in an orderly manner. Up to now, 998 counters have signed rental contracts; the rental intention has been reached. 688 counters are performing the contract review process, and 5200 counters are involved in commercial negotiations on cabinet rental.
Different from the public understanding: (1) the rental of machine counters in the data center is accelerated, and the transformation and layout of the company is accelerated in an all-round way.
The "Zhongjingyun" data center project is located in Yizhuang, Beijing. A total of 11000 cabinets are designed in Phase I and Phase II. In December 2016, the "Zhongjingyun" computer room completed fire control and power acceptance, and the power supply of the computer room was connected. In 2017, the company's IDC is progressing smoothly, and the rental of cabinets has been accelerated. The number of customers who are engaged in commercial negotiations on cabinet rental involves 5200 counters, an increase of 514,440 and 1726 respectively compared with the operating data announced on February 11, and the company's transformation and layout has accelerated in an all-round way. (2) the pure quantum communication object has a high position in the industry and a huge imagination space. Zhongjingyun was approved by the State Information Center and became the first member of Quantum Communication Branch of China Information Association on October 12, 2016. he served as vice chairman unit with a high status in the industry; at the same time, Zhongjing Yun also worked closely with the University of Science and Technology to establish a joint venture with Zhongjing Quantum Communications. Zhongjing Cloud has a high status in the industry and outstanding resource advantages, and there is huge room for imagination when IDC and quantum communications are combined in the future. (3) the development of PPP service is accelerated, and the traditional main business provides the margin of security. The company also has a good growth in construction contracts this year. The company and its subsidiaries have signed a total of 1314 new contracts this year, with a total contract amount of about 17.4 billion yuan, an increase of 59.50% over the same period last year. At present, the PPP project has won a total of about 4.2 billion yuan, the profitability is higher than that of traditional housing construction, and the steady growth of the main business provides a higher margin of safety for the stock price.
The catalyst for stock price performance: Zhongjing Cloud has made new breakthroughs in its business; PPP has obtained large orders and its performance has exceeded expectations.
Maintain the profit forecast and maintain the "overweight" rating: we expect the company's 16-18 net profit to be 200 million / 310 million / 480 million, corresponding to a growth rate of 5%, 55%, 55%, and a diluted PE of 48X/31X/20X.