Event: On October 27, 2023, Yunsai Zhilian released its 2023 three-quarter report. In the first three quarters of 2023, the company achieved revenue of 3.706 billion yuan, an increase of 19.67% over the previous year; net profit of 156 million yuan, an increase of 2.20% over the previous year; net profit after deduction of 99 million yuan, an increase of 284.19% over the previous year. The performance is in line with market expectations.
Key points of investment
Steady growth in performance and steady increase in gross margin: In the first three quarters of 2023, the company's net profit from non-return to parent increased significantly year-on-year, mainly due to the relatively high share of profits from the company's transfer of equity shares in the subsidiary's instrument and electrical engineering in the same period last year. In Q3 alone, the company achieved revenue of 1,208 million yuan, a year-on-year decrease of 0.23%; net profit of 63 million yuan, an increase of 2.43% over the previous year; and net profit after deduction of 13 million yuan, a year-on-year decrease of 77.67%, mainly due to non-recurring profit and loss from the company's subsidiary's transfer of 40% of the shares in Shanghai Panasonic Microwave Oven Co., Ltd. In the first three quarters of 2023, the company achieved a gross profit margin of 18.82%, an increase of 0.12pct over the previous year, and gradually strengthened its profitability.
The data element industry is progressing steadily, with Shanghai taking the lead: On October 25, 2023, the National Bureau of Data was officially unveiled, and major reforms related to the field of data factors are poised to begin. Experts expect that by the end of the “14th Five-Year Plan” period, China's data element circulation market will reach trillion yuan, and data transactions need to be actively promoted. The “Shanghai Action Plan for Further Promoting the Construction of New Infrastructure (2023-2026)” was issued on October 19. The “Shanghai Action Plan for Further Promoting the Construction of New Infrastructure (2023-2026)” was issued on October 19, proposing to take the lead in creating a national-level data trading platform in terms of building a high-quality data infrastructure integrating digital intelligence. Since 2023, the data transaction volume of the Shanghai Stock Exchange has continued to rise, and the “Shanghai model” of data trading has gradually taken shape. As a leader in data factors in Shanghai, Yunsai is expected to fully benefit in the future.
Construction of the second phase of computing power has begun, and it is expected that it will participate in computing power scheduling in the future: on September 27, 2023, the company announced that it intends to transfer 20% of the shares of Shanghai Science and Technology Network held by Yidian Group. After the transfer is completed, the company will hold 100% of the shares in Science and Technology Network. This transfer is in preparation for the company's subsequent promotion of the Songjiang Data Center Phase II planning and construction. On September 27, the company announced that it plans to invest 795 million yuan to launch the second phase of the Songjiang Big Data Center, investing in the construction of about 1,124 high-capacity racks. The project has high IT power, is specially designed for AI computing power server construction, and is preparing for the second phase of computing power construction. On September 20, 2023, the company was selected as the vice chairman of the Shanghai Computing Network Association. It is expected to participate deeply in computing power scheduling in Shanghai and the Yangtze River Delta region.
Profit forecasting and investment ratings: Shanghai leads the country in data elements and computing power construction progress. The company has obvious card advantages, and actively lays out computing power leasing. In the future, with the implementation of data factor industry policies and the acceleration of computing power scheduling market construction, the company is expected to usher in accelerated development. Based on this, we maintain the company's net profit forecast for 2023-2025 at 218/2.52/288 million yuan, maintaining the “buy” rating.
Risk warning: policy progress falls short of expectations; technology research and development falls short of expectations; industry competition intensifies