"Steel + X" business model, and then layout IDC digital economy. The company merged into Ningbo Iron and Steel and environmental protection related assets through asset exchange in 2015, acquired IDC assets of the Group in 2019, and transformed the digital economy. At present, the company's business covers environmental protection, steel, trade, renewable resources and IDC, while the iron and steel business remains the main source of profit. The major shareholder of the company is Hangzhou Iron and Steel Group, and the actual controller is Zhejiang SASAC.
The first phase of IDC is expected to be put into operation in 20H1. According to the company's announcement on changing partially raised investment projects, acquire 100% equity in cloud computing data center and increase capital by changing the funds raised by the initial public offering before 2015. With a total of 9670 cabinets, it is estimated that the first phase of 4000 cabinets will be completed and put into operation by the first half of this year and generate profits.
How to treat the competitive advantage of Hangzhou Iron and Steel Co., Ltd. to be involved in IDC. The energy consumption indicators required by the IDC industry have something in common with the iron and steel industry. Steel enterprises such as Hangzhou Iron and Steel have strong resource advantages in terms of project land, energy supply, financial strength, policies and customer advantages (Note: land and energy consumption indicators are still owned by the group). To some extent, they have exceeded the resources accumulated by most IDC operators for many years, and the future development is worth looking forward to.
Profit estimation of IDC business. According to the simulated calculation of the single rack rental income of the communication computer room announced by the company, and referring to the rack pricing market of the domestic operator IDC computer room, the average power consumption of 5.0kW single rack rental is about 6000-9000 yuan / month, and the project rental income of each 5Kw rack is 74,000 yuan / year. At the same time, we refer to IDC business comparable company Baoxin software, etc., the annual rent of single cabinet is about 90,000. Suppose the annual rent of the company's single cabinet is about 80,000-90,000, the gross profit is 45-50%, the profit of the single cabinet is 20,000 yuan, the cabinet is 0.9600, and the corresponding annual profit is about 200 million yuan.
Profit Forecast & Investment suggestion
The 19-year performance has declined due to the sharp rise in raw material prices. Without taking into account IDC, the company is expected to achieve a net profit of 916 million yuan, 931 million yuan and 936 million yuan in 19-21, an increase of-52.7%, 1.7% and 0.6% over the same period last year, corresponding to a PE of 23.1,22.8 and 22.6 times, respectively.
The company's iron and steel business stable profit of 9-1 billion yuan, give the industry an average valuation of 10XPE; environmental protection business reference company Bishui, stable profit of 100 million yuan, given to 30XPE. The comprehensive corresponding market value is about 13 billion. IDC valuation with reference to comparable company Baoxin software, etc., given 60 times PE, corresponding to a market value of about 12 billion. Give the company a target market capitalization of 25 billion yuan, giving the company a "buy" rating for the first time.
Risk hint
The progress of the rights issue is lower than expected, and the profitability of the steel business is not as expected as a drag on short-term performance.