Runze Technology announced its 2023 results. In 2023, the company achieved revenue of 4.4 billion yuan, an increase of 60.3% year on year, and realized net profit of 1.76 billion yuan to mother, an increase of 47.0% year on year. Non-net profit was deducted at $1.71 billion, an increase of 50.2% over the previous year. Looking at a single quarter, 4Q23 achieved revenue of 1.7 billion yuan, a year-on-year increase of 130.2%; realized net profit to mother of 6.4 billion yuan, an increase of 69.9% over the previous year; realized deducted non-net profit of 590 million yuan, an increase of 56.8% over the previous year.
The computing power center sector has risen, and the company's performance has been growing steadily. In 2023, the computing power center field ushered in the biggest development opportunity in nearly ten years. With the deepening development of the new round of technological and industrial revolution, the world's major countries have established “intelligent computing power” as a strategic direction for priority development. Against this background, the company's revenue and net profit continued to grow steadily in 2023. Since the profit in 2019, the company's revenue CAGR reached 44.83%; as of December 31, 2023, the company had total assets of 23.3 billion yuan, total liabilities of 14.8 billion yuan, net assets attributable to shareholders of listed companies of 8.5 billion yuan, a balance ratio of 63.34%, and a balance and liability structure at a healthy and appropriate level.
Scarce resources will be further expanded, and the foundation for development will be further consolidated. In 2023, the company continued to consolidate the foundation of business development, lay out new resources for incremental projects, expand new energy consumption, and support the construction of 220KV substations to inject strong momentum into the stable, safe, reliable and green operation of the park and intelligent computing infrastructure clusters. An incremental project. In 2023, the company deployed new resources for the third time and landed in Danzhou, Hainan. The aim was to improve the cross-border layout and plan about 30,000 racks. Existing projects. As the first phase of overseas projects is completed and delivered, important basic resources such as land and energy consumption have also been added to the second phase of the project in many places. At the end of 2023, the company's energy consumption index reserves increased by 37.65% compared to the end of 2022, which ensures the company's long-term steady development.
IDC has a stable leading position, with liquid cooling leading the way. With its forward-looking national strategic layout, the company has now planned and completed seven AIDC intelligent computing power infrastructure clusters in six core regions, including the Beijing-Tianjin-Hebei, Yangtze River Delta, Greater Bay Area, Chengdu-Chongqing Economic Zone, Gansu, and Hainan Free Trade Port, and has basically completed the national “integrated computing power center system” framework layout. At the same time, as a leading “liquid cooling” enterprise, the company delivered the industry's first complete liquid-cooled intelligent computing center in the “first year of liquid cooling” in 2023, speeding up the construction of a park-level intelligent computing infrastructure cluster, and making every effort to achieve the strategic goal of “actively embracing the wave of technological revolution and striving to lead the upgrading of computing power centers”.
Investment suggestions: The company is expected to achieve operating income of 6.14 billion yuan, 8.08 billion yuan, and 10.93 billion yuan in 2024 to 2026, and achieve net profit of 2.47 billion yuan, 3.33 billion yuan, and 4.61 billion yuan, respectively. The corresponding EPS is 1.44 yuan, 1.94 yuan, and 2.68 yuan, respectively, and the corresponding P/E is 20 times, 15 times, and 11 times, respectively. Under industrial trends such as artificial intelligence, cloud computing, and 5G, data centers are expected to continue to grow at a high rate. Considering the company's outstanding comprehensive competitive advantage and sufficient resource reserves, it is expected to accelerate development. Optimistic about the company's business prospects and maintain a “recommended” rating.
Risk warning: Policy implementation falls short of expectations; industry competition intensifies; risk that performance promises may not meet standards.