Guanghuan.com released its report for the first quarter of 2024. On April 24, 2024, the company released its report for the first quarter of 2024. 2024Q1 achieved revenue of 1.98 billion yuan, a year-on-year increase of 5.3%, realized net profit of 160 million yuan, a year-on-year decrease of 5.5%, and realized net profit without return to mother of 170 million yuan, a year-on-year decrease of 5.2%.
Q1 Performance achieved steady growth, and the data center and cloud computing business continued to develop. The company continued to steadily develop its Internet data center business and cloud computing business during 24Q1, and there were no major changes in its main business. Excluding the impact of US dollar loan exchange gains and losses in the same period last year, the company's 24Q1 net profit attributable to shareholders of listed companies increased 1.19% over the same period last year. Among them, IDC and value-added services achieved revenue of 540 million yuan, a decrease of 0.05% over the same period of the previous year; the cloud computing business achieved revenue of 1.41 billion yuan, an increase of 7.57% over the same period last year. Faced with the current situation of slowing macroeconomic growth, weak demand from downstream customers, and imbalances between supply and demand in the IDC industry, the company continues to step up its marketing efforts and actively promote the delivery of data center resources in various regions.
Implement the concept of green development and promote energy-saving projects in an orderly manner. Following the call of the national “dual carbon” policy, the company actively explores more applications such as low-carbon operation of data centers, green energy saving upgrades, carbon reduction and energy saving technology, and data center liquid cooling technology, and continues to promote the construction of data center energy saving and carbon reduction systems. While reducing data center PUE through the transformation of energy-saving equipment and applying advanced energy-saving technology, the company paid more attention to solving energy consumption problems at the root. 24Q1 continued to promote the construction of Beijing Taiheqiao, Fangshan and CICC cloud network data center photovoltaic projects, further expanded the company's distributed photovoltaic power generation coverage, and responded to the government's call to actively participate in green power market-based transactions to improve the level of green power usage in data centers. 24Q1 completed a green power transaction of about 30 million KWH.
Deeply involved in the digital marketing system, AIGC helps customers accelerate innovation. Q124 Musuang Technology continues to provide users with SaaS services for data monitoring, performance evaluation, and intelligent delivery. There have been no major changes in the main business, and business revenue has been rising steadily. Musuang Technology is actively expanding new business directions, exploring new customer groups, and developing major customers while refining its professional capabilities in the fields of serving mobile marketing customers, integrating mobile marketing strategies, and improving mobile marketing technology. Musuang Technology is actively trying to use generative AI to improve efficiency and reduce costs, further improving the efficiency and effectiveness of advertising optimization. At the same time, Amazon Web Technology also continues to innovate and explore in the AIGC field, launching a series of new services and functions around underlying infrastructure, generative artificial intelligence, and data strategies to help customers accelerate innovation through innovative technological reshaping.
Investment advice: In the context of the AI wave and digital economy, the data center industry and cloud computing industry will continue to grow rapidly. We expect the company's 2024-2026 revenue to be 91.2/109.0/12.87 billion yuan, and net profit to mother will be 6.08/7.85/922 million yuan, respectively. The current stock price corresponds to 2024-2026 P/E of 26/20/17x, respectively, maintaining the “recommended” rating.
Risk warning: Customer listing progress falls short of expectations; project construction and delivery progress falls short of expectations.