This article is edited by CITIC: "Sino-American data Center IDC Quarterly report: new orders reach a new high, focus on the asset value of the three major operators IDC"
Abstract: since the beginning of the year, the global IDC sector has performed well. Us stocks EQIX and DLR have risen 37% since the beginning of the year, while domestic IDC companies Baoxin Software, Dataport, 21Vianet Group Inc and GDS Holdings Limited have risen more than 50%. Q2 financial report data show that the shelving rate of new projects of major IDC enterprises recovered rapidly in the second quarter, and corporate profitability also improved significantly. GDS Holdings Limited, four IDC companies in North America, new orders in the second quarter all reached recent highs, indicating strong demand in the downstream market.
The shelving rate has recovered rapidly, and the operating efficiency of the enterprise has been significantly improved.
With the easing of the epidemic in the early stage and strong demand in the downstream market, the shelving rate of new projects by major IDC manufacturers improved significantly this quarter.In the domestic market, the revenue of GDS Holdings Limited, 21Vianet Group Inc and Dataport in the second quarter was + 36%, + 29% and + 11% respectively compared with the same period last year. The combined revenue of the three major operators' 2020H1IDC business reached 33.9 billion yuan and continued to play an important role in the domestic market. Us stocks EQIX (year-on-year + 6 per cent) and DLR (year-on-year + 24 per cent) remained robust.
At the profit level, GDS Holdings Limited's EBITDA Margin reached 47.2% (year-on-year + 3.7pcts) in the second quarter, close to the EQIX level of the same period (49.0%).The shelving rate of in service projects also increased to 72.5%; 21Vianet Group Inc EBITDAMargin also slightly increased to 26.8% (year-on-year-2.6pcts, month-on-month + 3.0pcts), reflecting the accelerated shelving rate of delivered projects in the first quarter. The overall performance of EQIX and DLR in US stocks is stable. The price of single cabinet in the industry as a whole remained stable in this quarter.
Q2 new orders all hit recent highs.
The performance of new orders signed by Q2 major enterprises continued to be strong, with GDS Holdings Limited's newly signed orders rising sharply to 46000 square meters in the second quarter, and new orders signed by four whole sale IDC companies (DLR, QTS, COR, CONE) in the United States continued to reach a new high in the last three years, indicating the continued strong demand of downstream cloud computing and Internet companies.
GDS Holdings Limited adjusted the annual capital expenditure from 7.5 billion yuan to 10 billion yuan; 21Vianet Group Inc continued to maintain the guidance of 32-3.4 billion yuan; the data port is currently under construction of 1.12 billion yuan; and Sinnet is expected to increase the number of storage cabinets to about 100000 in the next few years.
In the part of operators, the current inventory cabinet resources of Unicom and telecom are 277000 and 380000 respectively. China Mobile Limited's cabinet resources reached 104000 in 2017, and it is estimated that it should be about 200000 at present.Overseas markets, following the European hyperscale project last year, EQIX and Singapore GIC continue to strengthen the Japanese hyperscale market.
Market demand and benchmark interest rates drive medium-and long-term growth
Demand sideAfter the epidemic, the digitization and cloud transformation of enterprises, the online habits of users basically continued, and the market demand continued to be strong. At the same time, the short-term capital expenditure of North American cloud computing giants faces a cyclical decline, but the disturbance to IDC demand is basically limited.
Market interest rateThe world is embarking on a new cycle of easing, while the comprehensive financing cost of domestic IDC companies (5%-8%) is still significantly higher than that of US stocks (3%-4%).With the long-term downward trend of interest rates in the domestic market and the increase in the recognition of IDC assets by banks and other traditional credit institutions, the financing constraints and high financing costs of domestic IDC enterprises are also expected to continue to improve.
Valuation is relatively sufficient in the short term.
Since the beginning of the year, the global IDC sector has performed well, with US stocks EQIX and DLR up 37% and 33% respectively so far this year. With the policy of superimposing new infrastructure, domestic IDC companies Baoxin Software, Dataport, 21Vianet Group Inc and GDS Holdings Limited have risen more than 50%, and Sinnet has also increased nearly 30%.
At present, EV/EBITDA (2020E), a representative IDC enterprise in the US stock market, has risen from 20,22X at the beginning of the year to around 28X, corresponding to a compound EBITDA growth rate of 80.10%.
