Introduction to this report:
The performance was in line with expectations, the cloud computing business grew steadily, and the gross margin of IDC's business declined. The Beijing-Tianjin-Hebei business is steadily advancing the computing power pilot to consolidate its competitive advantage. Amazon Cloud Technology helps customers develop their business AIGC and build innovative productivity.
Key points of investment:
Maintain profit forecasts, lower target prices, and maintain holdings growth ratings. Maintain the company's net profit forecast for 2023-2025 to 531/671/884 million yuan, corresponding to an EPS of 0.30/0.37/0.50 yuan. Considering the company's card position and leading position in first-tier cities, compared with valuations in the same industry, it gave 40 times PE in 2023, lowered the target price to 12 yuan, and maintained the rating increase.
The performance was in line with expectations, the cloud computing business grew steadily, and the gross margin of IDC's business declined. Cloud computing business revenue was +7.43%, of which Wushuang Technology was +9.12%. Some customers were affected by industry policies and their investment budgets declined, and new markets were expanded by adjusting the customer structure. Affected by macroeconomic fluctuations, IDC's supply and demand contradictions are still prominent. Affected by factors such as a slowdown in customer listing rates, price drops, and some customer rent-outs, revenue was +1.36%. Due to the increase in fixed costs added to IDC, consumption reduction and transformation of existing computer rooms, and electricity price control policies, etc., IDC's business gross margin was -4.11pct to 39.29% year-on-year.
The Beijing-Tianjin-Hebei business is steadily advancing the computing power pilot to consolidate its competitive advantage. At present, the company has put into production 50,000 cabinets, and the total reserve project will reach 110,000 after production. The company piloted a computing power center at the Beijing Yizhuang Green Data Center, used the Nvidia A800 eight-card module server to set up computing power business capabilities, and started high-performance computing power business for industry customers in August 2023. Subsequent companies will continue to invest in H800 eight-card module servers with higher performance configurations to build the industry's strongest computing power infrastructure.
Amazon Cloud Technology helps customers develop their business AIGC and build innovative productivity. The Amazon Web Services China (Beijing) region where the company operates provides customers with a variety of services and functions, from infrastructure technologies such as computing, storage, and databases to emerging technologies such as machine learning, artificial intelligence, data lake and analysis, and the Internet of Things.
Risk warning: Data center construction and customer listing are progressing less than expected, and competition in the industry is intensifying.