Event: in the first three quarters of 2023, the company achieved operating income of 3.706 billion yuan, an increase of 19.67% over the same period last year, and a net profit of 156 million yuan, an increase of 2.20%. In the third quarter, operating income was 1.208 billion yuan, down 0.23% from the same period last year, and net profit was 63 million yuan, an increase of 2.43% over the same period last year.
We will speed up the layout of smart computing infrastructure and start the construction of the second phase of the big data Center in Songjiang. With Yunsai Jinhai as the main investor, the company invested 200 million yuan in cash increase and 595 million yuan in bank financing into the second phase of the Songjiang big data Center project, which is one of the 30 major functional issues in Shanghai in 2023. It will support the construction of city-level intelligent computing cluster and provide services such as computer server hosting, and the project is expected to be delivered by the end of 2024. The second phase of the project plans to invest in the construction of about 1124 high-power racks, totaling IT power 22MW, the average power of a single rack is 19.6kW, equipped with cold plate liquid cooling technology. In terms of supply, the company will actively promote the process of domestic substitution to reduce the instability of equipment supply; on the customer side, it will continue to focus on high-value and high-quality customers such as the financial sector.
Deepen cooperation with leading cloud vendors in the field of cloud services. The company's Nanyang Wanbang and Cigna Corp era are the domestic core MSP of mainstream cloud service manufacturers such as Microsoft Corp, BABA, Huawei and China Telecom Corporation. In the third quarter, Yunsai Zhaopin successively signed strategic cooperation agreements with Aliyun and Tencent Yun, opening a new starting point of comprehensive cooperation in the field of cloud services, and is expected to continue the rapid growth in the field of cloud services.
Working closely with Microsoft Corp in areas such as product agency and cloud services is expected to benefit from the expansion of Microsoft Corp's business. In September, Microsoft Corp's newly launched Windows11 provides free Windows Copilot to users, and will open Microsoft 365 Copilot to enterprise users in November this year, providing old users with a more flexible and personalized experience, reducing the difficulty of operation and conversion costs for new users, expanding the range of potential customers, and is expected to improve Microsoft Corp's product penetration and user stickiness. South Wanbang, which has worked closely with Microsoft Corp in product agency and cloud services for many years, is the core agent of Microsoft Corp's products in China, and is expected to benefit from the expansion of Microsoft Corp's business.
Investment suggestion: the company has a close relationship with the troika of Shanghai data elements, covering many links of the data element industry chain, and continues to promote the layout of intelligent computing power; the company is also Microsoft Corp's gold medal agent and rare local AEMSP, which is expected to benefit from Microsoft Corp's business expansion in the AIGC era. It is estimated that the company's operating income from 2023 to 2025 is 5.246 billion yuan, 5.965 billion yuan and 6.804 billion yuan respectively, and the corresponding net profit is 228 million yuan, 306 million yuan and 388 million yuan respectively. The current market value of the company is 75.6,56.4 and 44.4 times respectively, maintaining the "buy" rating.
Risk hint: the risk of tight supply of AI servers and untimely delivery; the promotion of data factor policy is not as expected; the business development of cloud services big data is not as expected.