On August 25, 2023, Data Port published its semi-annual report for 2023. 1H23 achieved total operating revenue of 746 million yuan, an increase of 4.74% over the previous year; net profit attributable to shareholders of listed companies was 686.5552 million yuan, an increase of 66.3% over the previous year. In a single quarter, 2Q23 achieved total operating revenue of 374 million yuan, an increase of 1.14% over the previous year; net profit attributable to shareholders of listed companies was 33.5725 million yuan, an increase of 8.21% over the previous year.
Demand for data center projects is growing, and the company's main business is developing steadily. The company's main business is data center server hosting services. According to different customer sizes and requirements, the company has formed a business model dominated by wholesale data center services and supplemented by retail data center services. Wholesale data center services provide customized server hosting services to large Internet companies or telecom operators. With efficient execution capabilities, outstanding technical level, rich operating experience, and management advantages throughout the life cycle of data center planning, design, investment and construction, and operation management, the company has obtained long-term service contracts for a large number of data center projects, and achieved rapid growth in business scale in a short period of time.
The core regional layout has been completed, and the scale of business continues to expand. Since 2015, through continuous cooperation and expansion, the company has built 35 data centers from Ulanqab and Zhangbei in the north to Shenzhen and Heyuan in Guangdong in the south. It has achieved a forward-looking strategic layout for the Beijing-Tianjin-Hebei, Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and corresponding core regions in the west, and adapted ahead of time to the country's “East Numerical Western Computing” data center layout planning guidelines. The company responds positively to the national “digital China” strategy, continuously promotes digital assistance, gradually promotes the construction and related preparations of the China Unicom (Huailai) Big Data Innovation Industrial Park Project Phase I, Hebei Langfang Project and Shanghai Minhang Project, continues to adhere to the core development strategy, relies on high-quality project resources, continuously improves service levels and technical capabilities, and provides customers with more efficient and stable data center services.
It has outstanding energy consumption control capabilities and efficiently empowers customer development. Over the past 10 years, the company has been efficient, stable, and empowered customers to develop rapidly. Its business scope covers the nine core cities of North China, East China and South China, creating positive conditions for the country to form a new pattern of integrated big data centers with reasonable layout, green intensity, safety and efficiency throughout the country.
The company's energy consumption management and control capabilities are particularly outstanding. The minimum PUE for annual national operating data centers can reach 1.09, reaching the leading international level. It fully satisfies the requirements of the “Implementation Plan for Implementing Carbon Peak Carbon Neutrality Targets and Promoting the Green and High-Quality Development of New Infrastructure such as Data Centers and 5G” for national hub nodes to drop below 1.25 in 2025.
Investment suggestions: 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 are optimistic about the company's performance improvement brought about by the increase in business demand from downstream customers. It is estimated that the company's revenue from 23 to 25 will be 16.6/18.5/1.99 billion yuan, and net profit of 1.6/2.3/260 million yuan, corresponding to the closing price P/E of August 28, 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.