Dataport announces 2024 semi-annual results. 1H24 achieved revenue of 0.778 billion yuan, up 4.33% year on year; net profit to mother 70.58 million yuan, up 2.8% year on year; deducted non-net profit of 63.67 million yuan, up 12.41% year on year. Looking at a single quarter, Q2 achieved revenue of 0.397 billion yuan, up 6.1% year on year; net profit to mother of 34.83 million yuan, up 3.7% year on year; net profit after deducting non-net profit of 31.74 million yuan, up 21% year on year.

Through short-term fluctuations in the industry, the main business developed steadily. According to KeZhi Consulting's “2023-2024 China IDC Industry Development Research Report”, the macroeconomic environment is stable, the digital economy is advancing, and demand for intelligent computing is strong. The traditional IDC business market is expected to accelerate in the future, and the scale is expected to exceed 250 billion yuan in 2028. As an outstanding representative of IDC's third-party service providers, the company continues to use its advantages in data center design and construction, operation management, and energy consumption control, leading the market, providing efficient, reliable, and green computing power services; actively explores changes brought about by cutting-edge technology to capture market demand. With the gradual release of production capacity in the data center project, the company's operating performance increased steadily, achieving an EBITDA of about 536.66 million yuan, an increase of 10.8 million yuan over the previous year, an increase of 2.05% over the previous year, showing a steady development trend through short-term fluctuations in the industry.

The scale of operation continues to lead, and the efficiency of operation and maintenance work has improved. The company has built 35 data centers, with a main business scale of 371.1 megawatts. It has achieved the forward-looking strategic layout of the Beijing-Tianjin-Hebei, Yangtze River Delta, the eastern hub and western core regions of the Guangdong-Hong Kong-Macao Greater Bay Area, adapting the “East Digital Western Computing” planning guidelines in advance; responding positively to the “Digital China” strategy and gradually promoting the first phase of the China Unicom (Huailai) Big Data Innovation Industrial Park project, project construction of the Langfang project, and related preparations for the Shanghai Minhang project. Operation and maintenance work is the cornerstone of the company's operation. The company maintains the goal of “zero SLA accidents, zero violations, and zero customer complaints”; it proposes “strict management, refinement, and deep sinking”, focusing on improving site management, improving team work efficiency, dynamically adapting to business needs, and consolidating cooperation with large customized customers.

Implementing the concept of green development, social influence continues to increase. Under policy guidelines such as the “Implementation Opinions on Further Implementing the “East Digital and Western Computing” Project to Accelerate the Construction of a Nationwide Integrated Computing Power Network” and the “Action Plan for the Construction of Information Technology Standards”, China's data centers are moving towards a new pattern of rational layout and green intensity. The company has been empowering customer development efficiently and steadily for many years, creating positive conditions for promoting the formation of a new data center pattern. The ability to control energy consumption is outstanding. The lowest annual PUE for operating data centers in the country reached 1.09, reaching the leading international level. 1H24 invested 37.76 million yuan in R&D expenses and participated in drafting industry standards.

Investment advice: With the booming development of emerging applications and technologies such as cloud computing, big data, and the Internet of Things, the “new infrastructure” construction process represented by data centers has accelerated markedly. We expect the company's revenue to improve due to increased business demand from downstream customers. We expect the company's revenue to be 1.66/1.85/1.99 billion yuan from 24 to 26, respectively, and net profit of 0.18/0.28/0.3 billion yuan, corresponding to the closing price of August 23, which is 40x/26x/24x, maintaining the “recommended” rating.

Risk warning: the risk of high customer concentration, the risk of increased market competition, and the risk of industrial policy changes.