Event description

On April 24, 2022, the company disclosed its annual report in 2021 and quarterly report in 2022: revenue in 2021 was 1.205 billion yuan, year-on-year + 43.35%, net profit 145 million yuan, year-on-year-7.67%, non-net profit 153 million yuan, revenue 270 million yuan, year-on-year-4.05%, net profit 42 million yuan. Year-on-year 44.13%, realized deduction of non-net profit 31 million yuan, year-on-year-31.09%.

Event comment

The stock data center business is developing smoothly, and the revenue and profit are rising step by step-throughout the year, the shelving rate of the stock self-built data center continues to increase, bringing a steady increase in revenue. Among them, the business income in North China, which is mainly distributed in Beijing and Langfang in recent years, exceeded 600 million, an increase of 76.83% over 2020, and has become the main driving force of the company's performance growth. It is worth noting that in 2021, after deducting non-recurring profits and losses and adding back to the shares included in the current profits and losses, the net profit belonging to the company's common shareholders was 171 million yuan, an increase of 43.10% over the same period last year, showing the company's strong profitability. In a single quarter, the company's 2021Q4 revenue fell 16.33% from the previous quarter, and its home net profit decreased by 57.43% from the previous quarter. The larger decrease compared with the third quarter is mainly due to the inclusion of equity incentive fees in costs, the decline in profits from overseas operations, the increase in financial expenses and other reasons-the construction of the machine may be accelerated in the second half of the afternoon. From the perspective of Q1 alone, Q1 revenue declined slightly from the previous month, mainly due to the impact of the epidemic on the company's engineering construction, supply chain transportation and customer shelves, while international business was greatly affected by the epidemic. We expect the company to speed up the construction of the project in the second half of the year, and the incremental cabinets may be able to speed up the completion and delivery. According to the project schedule and market scheduling plan, Guangzhou Nansha, Langfang Guan and Tianjin Wuqing data center projects will achieve the first delivery in 2022, and it is expected that the additional delivery will reach 20,000 cabinets by the end of 2022. IDC business is expected to achieve rapid growth-actively promote the expansion of white-built data centers in the core area. In 2021, the company completed the expansion project of Langfang Xunyun project and the second phase of Guangzhou BABA project. at the same time, it started the construction of data centers such as Nansha in Guangzhou, Guan in Langfang, Wuqing in Tianjin, Kunming in Yunnan and Nanchang in Jiangxi-the number of switchboard cabinets in the company's self-built data center was about 19900 by the end of 2021, an increase of 24% compared with the end of 2020. The storage size of cabinets is more than 50, 000, and the projects are all distributed in national data center clusters such as Beijing, Tianjin, Hebei, Guangdong-Hong Kong-Macau Greater Bay Area and other national data center clusters and in the central and western provincial capitals, which are in line with the development planning direction of the national industry, such as the calculation of the east and the west, and also match the long-term needs of the main target customers. at present, the company and Baidu, Inc. have signed letters of intent for the new construction projects of Guangzhou Nansha and Langfang Gu'an data centers. It is estimated that the total income during the cooperation period is estimated to be 10 or 950 million yuan-to promote the enlightened Zhonghe and new energy strategic planning of the data center-the company actively promotes the strategic deployment of new energy. at present, it has completed the investment and construction of distributed photovoltaic power generation projects in Langfang Xunyun data center and other self-owned data center projects. at the same time, other external distributed photovoltaic power generation projects have been signed and built in an orderly manner-by the end of 2021. Aofei New Energy has signed a total of 35 development projects in Guangdong, Guangxi, Jiangxi and other provinces, with a total installed capacity close to 10OMw. Profit Forecast and Investment suggestion ∶ Company has abundant production capacity, abundant project reserves and strong certainty of subsequent expansion. Looking forward to the whole year, we expect the company's return net profit from 2022 to 2024 to be 202 million yuan, 242 million yuan and 321 million yuan respectively, corresponding to 31 times, 26 times and 19 times of PE. It is estimated that the company's EBITDA from 2022 to 2024 will be 570 million yuan, 858 million yuan and 1.146 billion yuan respectively, and 17 times, 13 times and 10 times respectively corresponding to EV/IEBITDA.

Risk hint

1. IDC industrial policy continues to be tightened.

2. The shelving rate of the cabinet is lower than expected.