Main points of investment:
Event: the company plans to issue shares to purchase the underlying assets through the cloud data center project has completed the fire control, power acceptance, power supply in the computer room has been connected, cabinet space rental business has been carried out in an orderly manner.
Different from the public understanding: (1) the power up of the data center has been completed, the rental of cabinet space has exceeded expectations, and the layout of the company's transformation has been 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. Up to now, the power supply of the data center computer room has been completed, and 69 cabinets have signed rental contracts. It is planned to enter and turn on electricity by the end of December. The rental intention has been reached and 435 counters are undergoing the contract review process. It is expected that in the next 2 months, 2654 counters will be involved in commercial negotiations on cabinet rental. The IDC of the company is progressing smoothly, the rental of cabinets is higher than expected, and the transformation and layout of the company is accelerated in an all-round way. (2) the pure quantum communication object has a high position in the industry and a huge imagination space. Established with the approval of the State Information Center, Zhongjing Yun became the first member of Quantum Communication Branch of China Information Association on October 12, 2016, serving as vice president 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 Qintong, which has a high position in the industry and outstanding resource advantages, and there is huge room for imagination when IDC and quantum communication are combined in the future. (3) to create a platform and link between China and Africa through Amland Securities. In 2015, the company acquired 100% of the shares of Amland Securities in cash. In the future, the company will take Amland Securities as a starting point. On the one hand, it will respond to the "Belt and Road Initiative" strategy to explore overseas engineering business; on the other hand, it will build a financial service platform and communication bridge between Chinese enterprises, markets and African enterprises and markets, so as to provide Chinese enterprises with localized investment and financing services in Africa and expand relevant markets. (4) the development of PPP service is accelerated, and the traditional main business provides the margin of security. The company has also seen a good increase in construction contracts this year, with a total contract amount of about 9.824 billion yuan in the first three quarters, an increase of 57% over the same period last year. It has won the bid for PPP projects totaling 4.192 billion yuan, and its profitability is higher than that of traditional housing construction. The steady growth of the main industry provides a higher margin of safety for the stock price.
The catalyst of stock price performance: Zhongjing Cloud business has a new development breakthrough; an Lan Securities has a new business breakthrough; PPP obtained a large order, the performance exceeded expectations, and so on.
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% and 55%. After the completion of the offering, the total share capital of the company will be expanded to 1.406 billion shares, and the corresponding diluted PE will be 49X/32X/20X.