With Sinnet once again cooperating with IDC distributed energy project, following Sinnet Haijiading IDC distributed energy project, the company announced that subsidiary Ruiheng Energy and Sinnet signed three Beijing IDC distributed natural gas projects, namely Yanjiao, Taiheqiao and Fangshan, with a total 108MW of gas generator sets, a six-fold increase. Previously, the total installed capacity of the Jiading IDC distributed energy project is 18MW, of which the first phase of the installed capacity 9MW has been completed. The company's distributed energy projects in the field of IDC achieve rapid replication.
IDC is one of the best application scenarios of distributed energy. With the high growth of the industry and the reduced price of natural gas in the market space of nearly 10 billion yuan, distributed natural gas has become economical. With the relaxation of online / grid-connected policy, it has begun to expand in IDC data centers, hotels, hospitals, airports and other fields, and distributed natural gas projects have been released rapidly. Among them, IDC computer room consumes a lot of electricity and cooling, so it is a better application field of distributed natural gas. Driven by the Internet and cloud computing, China's IDC market will exceed 90 billion yuan by 2017, with a compound growth rate of nearly 40 per cent. Only consider the new market, if the market size of China's IDC in the next 3 years is about 79.5 billion yuan, corresponding to 800000 new cabinets. Assuming that 50% of them use distributed natural gas, the corresponding investment scale is about 9.5 billion yuan.
Distributed projects are replicated in the IDC industry and are expected to expand to other areas. Sinnet is the leader in the IDC industry, with self-built high-quality data centers in major cities such as Beijing and Shanghai, with more than 40,000 cabinets. The company has signed the first project with Sinnet, and the demonstration effect is remarkable. The framework agreement further deepens the cooperation between the two sides. The company is expected to achieve order replication in IDC, hospitals and other fields in the future.
SEOs lock in the interests of management, and distributed projects will bring performance flexibility. It is estimated that the EPS in 2016-18 will be-0.16,0.21,0.40 yuan respectively. The company occupies the first-mover advantage of the IDC industry and is expected to quickly occupy the market and expand to other areas. The asset-liability ratio of the company is low, and the fixed increase of the company has been completed. the major shareholders and employees participate in the stock ownership plan to subscribe for 277 million yuan and 72 million yuan respectively, and the subscription price is 7.18 yuan per share. The increasing holding ratio provides space for subsequent capital operation, employee shareholding locks the core interests of management, and it is expected that distributed natural gas projects will continue to replicate, bringing performance flexibility and giving a "buy" rating.
Risk tips: lower-than-expected progress of distributed projects; expenses and asset impairment losses resulting from withdrawal from commercial retail business; other possible asset impairment losses; 2016 performance pre-loss risk