Event: Jointly Mobile to build a digital networking Yangtze River Delta hub and expand the data element ecosystem On the afternoon of November 9, 2023, Zhejiang Big Data Trading Center joined China Mobile Information Technology Center and China Mobile Hangzhou Branch to participate in the “2023 World Internet Conference · Wuzhen Summit”. The Data Exchange Center, China Mobile Information Technology Center, and China Mobile Hangzhou Branch jointly initiated the construction of the “Zhejiang Data Factors Integrated Service Platform and China Mobile Digital Network Yangtze River Delta Hub”. At the same time, the cooperation case between Zhejiang Big Data Exchange Center and China Mobile was also selected as a typical application scenario for the construction of the digital Yangtze River Delta and presented at the conference.

Opinion: Expanding the data element ecosystem of the Zhejiang Digital Research Institute is expected to increase the scale of transactions Kong Jun, general manager of Zhejiang Big Data Trading Center, said that data is both “intangible” and “tangible,” and that data circulation requires a secure, trustworthy, and efficient “logistics network.” We believe that this strategic cooperation is committed to taking the lead in jointly building data circulation infrastructure at the “East Digital Computing” Yangtze River Delta hub. The goal is to build a comprehensive service platform and +1 digital network Yangtze River Delta hub, providing a low-cost, efficient and reliable circulation environment for data element circulation transactions, and achieving a closed loop of data market transactions and one-stop service for the entire link.

This partnership has complementary advantages and complements each other, expanded the data element ecosystem of the Zhejiang Digital Institute, enhanced its influence in Zhejiang, the Yangtze River Delta, and even the whole country. It is also expected to promote the increase in the scale of its transactions, better serve the compliance and efficient circulation and use of data elements in Zhejiang and the whole country, and empower the real economy.

Deeply explore the practice of data factor trading platforms and build a “1+N” provincial data circulation service platform Zhejiang Digital Culture is the largest shareholder of Zhejiang Big Data Trading Center, holding 48.20% of shares. Established in 2016, Zhejiang Big Data Trading Center is the first data trading venue in Zhejiang and the only data trading venue approved by the Zhejiang Provincial People's Government. The trading center responds to the requirements of the “1+N” data element circulation system, actively explores the practices of data element trading platforms, and promotes cooperation between provinces and cities. Currently, it has launched 2 industry zones: the International Data Trading Zone guided by the Provincial Department of Commerce, the online data transaction circulation zone guided by the Provincial Department of Economics and Information; and 6 regional zones: Ningbo, Wenzhou, Huzhou, Yiwu, Xinchang, and Yuhang. On October 14, 2023, the Ningbo Zone in cooperation between Zhejiang Big Data Trading Center and Ningbo City was officially launched on the trading platform, and the first transaction was completed. We believe that in the context of favorable data factor policies, the data element industry where Zhejiang is located has huge potential.

Profit forecasting and valuation

We expect the company's revenue for 2023-2025 to be 37.98/39.85/4615 billion yuan, a year-on-year decrease of 26.78% in 2023, a year-on-year increase of 4.93%/15.81% in 2024/25; net profit attributable to shareholders of the parent company is 8.50/9.03/1,016 million yuan, an increase of 73.50%/6.27%/12.48%; EPS is 0.67/0.71/0.80 yuan, respectively, at the closing price of November 13, 2023, corresponding to PE It's 18.77/17.66/15.70.

The company's main game business is stable, “AI+ data elements” are taking off on both wings, and the cutting-edge layout of the digital China strategy is expected to benefit from the data element market. We continue to be optimistic and maintain our “buy” rating.

Risk warning

Increased market competition; model commercialization has not progressed as expected; industry regulation risk; industry policy change risk; macroeconomic fluctuation risk, etc.