Incident Guangdong Rongtai announced a new round of targeted issuance plans. It plans to issue no more than 190 million shares on a non-public basis, raise no more than 1,659 million yuan in capital, and raise no more than 1,659 billion yuan at an issue price of no less than 8.75 yuan/share. Of this amount, 1,339 million yuan was invested in the Zhangbei Rongtai cloud computing data center construction project and 320 million yuan in bank loan repayment. Dingzeng built an organic house to accelerate transformation Since the company acquired Senhua Yiteng in early 2016, it has actively transformed into a data center. Senhua Yiteng is a leading IDC service provider in China. Currently, Senhua IDC computer rooms still rely on rental operators or third party computer rooms, and they do not own IDC computer rooms themselves. The operating model of a rental computer room is limited by capacity expansion and uncertainty about rent exchange, so it does not meet the requirements of the company's long-term development. The company plans to invest in the production capacity of 2,000 cabinets from 2020 to 2022, and build a total production capacity of 6,000 cabinets by 2022, which will greatly increase the company's cabinet holdings at that time. Being close to Beijing is suitable for data center layout. Zhang Bei is blessed with natural conditions. Beijing is the largest demand market for data centers in the country. Currently, Senhua Yiteng's business is also concentrated in the Beijing region, but currently Beijing has banned the construction of new data centers within the 6th Ring Road. Zhangbei is only 225 kilometers from Beijing and can be directly connected to Beijing through optical fiber, making it the county and city near Beijing that is most suitable for data center layout. The cost side of building a data center in Zhangbei has two advantages: 1) the average annual temperature is less than 3 degrees Celsius. In summer, the data center can be cooled by natural air, so there is no need for additional air conditioning and cooling; 2) It is rich in new energy power resources and outputs 5 billion kilowatts of new energy generation every year, which can provide sufficient electricity consumption facilities for the data center computer room. It is estimated that the operating cost of the Zhangbei data center project can be reduced by 30%-40% compared to the current data center operation level. Currently, a number of data centers and cloud computing service providers have gone to Zhangbei to build a new data center project. Maintaining the “increase in holdings” rating, the company's net profit for 2016, 2017, and 2018 is estimated to be 1.26, 1.52, and 214 million yuan respectively, corresponding to EPS of 0.18, 0.22, and 0.30 yuan, respectively. The current price corresponding to 2016-2018 PE is 55, 46, and 32 times, respectively. The company's business was assessed by segment. The chemical business was valued at 3 billion yuan, and the IDC business valuation range was 4.5 to 5 billion yuan. The company's overall reasonable valuation range is 75-8 billion yuan, and the reasonable price range is 10.64-11.35 yuan, maintaining the “increased holdings” rating. Risk warning: The growth rate of the IDC industry is slowing down, and the promotion of new businesses such as cloud computing falls short of expectations.