2020Q3 realized revenue / return net profit of 207 million yuan / 2.99 million yuan respectively, which was-18.5% Universe 61.8% compared with the same period last year. At present, the company has basically achieved business transformation, IDC and cloud computing have become the largest business.
Although the company's business has been affected by the epidemic, the progress of its core projects has not been affected. We are optimistic about the continued growth of IDC and cloud business after the transformation, but the decline of traditional business and the climbing period of new business will have a certain impact on its short-term performance, so it is downgraded to "overweight" rating.
The company's business transformation has progressed smoothly, and the profitability of IDC business has been improved. Although the construction and business development of the company's projects were greatly affected by the epidemic, the company concentrated superior resources to ensure the construction of Zhengtong Guangmingyun data center and the delivery and operation of Dongguan Qifeng data center, and the overall shelving rate, rental rate and business gross profit margin of the data center cabinets increased steadily. During the reporting period, the company's project under construction and development expenditure increased by 43.9% and 999.4% respectively compared with the beginning of the period, mainly due to the significant increase in the investment in the construction of the company's IDC data center and the capitalization investment in the second phase of Zhentong cloud platform development. The company's continuous investment in IDC and cloud services business is expected to further consolidate Guangdong-Hong Kong-Macau Greater Bay Area's position as the leading IDC and advanced cloud service provider. In the future, the company is expected to enter the harvest period, the gross profit margin will continue to grow, and the overall revenue will pick up.
Customer structure and business layout are optimized to support the long-term development of the company's business. At present, the company's deep cooperation with Ping an Communications, China Mobile Limited, China Post Group and other companies has further enhanced the stickiness between the company and high-quality customers, the reputation of the industry and brand influence. The company currently has a sufficient number of orders on hand, and has received many major orders for Ping an Communications since 2018, providing it with customized IDC site services, cabinet hosting and related software and hardware equipment, with a total order value of more than 3 billion yuan. At the same time, the company pays attention to the continuous investment in IDC and cloud services, and actively promotes industrial transformation. At present, IDC and cloud computing have become the largest business. At present, the company has completed the localization and adaptation of the Zhengtong cloud platform, building a wide-area interconnected wisdom park operation platform, focusing on serving Guangdong-Hong Kong-Macau Greater Bay Area and the central government and enterprises, and realizing integration and interoperability with mainstream public cloud manufacturers. in the future, the company is expected to fully enjoy the growth dividend of the cloud computing industry.
Actively expand the layout of Hunan IDC to serve the smart medical industry. In September 2020, the company announced that it intends to use no more than 200 million yuan to acquire the construction land use rights and above-ground buildings of Hunan Zhaoshan Weiming Biomedical Co., Ltd., which will be combined with the demands and planning of local governments in the future. make use of the existing assets of the project, integrate resources to continue to promote the construction and operation of the project, and create an industrial cluster of medical informatization, medical big data and intelligent medical care. It is expected that the implementation of the project will further improve the layout of the company's IDC and cloud computing business in smart medicine and other areas, tap the relevant needs of industrial customers in large health data storage, data computing, data applications and other aspects, and enhance the company's comprehensive competitiveness.
Risk factors: IDC cabinet expansion and shelf rate increase is lower than expected; financial electronic lighting electronic business decline is higher than expected; business transformation progress is lower than expected; Hunan Zhaoshan Weiming Biomedical Co., Ltd. construction land use rights related transactions are uncertain.
Investment advice: the company's transformation is progressing smoothly at present, and we expect that with the increase of gross profit margin and expense rate of the company's IDC and cloud services business in the future, it will bring new impetus to the company's growth. However, as the company is in the transition from traditional financial electronic business to IDC and cloud computing business, the decline of traditional business and the climbing period of new business-related projects have a certain impact on its performance. Accordingly, we adjusted the 2020 EPS 2021 2022 forecast to 0.06 max 0.20 max 0.42 yuan (the original forecast was 0.25 pm 0.34 pm 0.45 yuan), and downgraded to "overweight" rating.
