2022-04-24Chen Ningyu, Wang Fengjie, and She Yuqing of Zhongtai Securities Co., Ltd. conducted research on Guanghuan New Network and released a research report "Affected by the epidemic in the short term, waiting for the recovery of IDC and the cloud industry". This report gave a buy rating for Guanghuan New Network, with the current stock price of 10.46 yuan.
Haggy New Network (300383)
Company announcement: The company released its 2021 annual report and first quarter report, with annual revenue of 7.7 billion yuan, a year-on-year increase of 2.99%, and net profit attributable to shareholders of 836 million yuan, a year-on-year decrease of 8.41%. In Q1 2022, revenue reached 1.833 billion yuan, a year-on-year decrease of 6.49%, a month-on-month increase of 3.80%, and net profit attributable to shareholders was 193 million yuan, a year-on-year decrease of 12.63%, and a month-on-month increase of 27.04%.
The epidemic affects demand and delivery on the shelves, and improves month-on-month in the first quarter. In 2021, under the adverse impact of the epidemic, Internet platform rectification and "double reduction" in the education industry, the company's cloud computing and data center business revenue achieved steady growth. By business, cloud computing achieved annual revenue of 5.591 billion yuan, a year-on-year increase of 0.85%, of which the number of AWS customers increased significantly and revenue grew steadily. Wushuang Technology's SAAS business was greatly affected by external factors. IDC and value-added business revenue was 1.838 billion yuan, an increase of 10.17% year-on-year, and IDC operating services revenue was 192 million yuan, an increase of 6.53% year-on-year. The comprehensive gross profit margin was 20.61%, down 0.49 pct year-on-year, of which cloud computing was 9.59%, down 1.22 pct year-on-year, IDC and value-added services were 53.62%, down 1.23 pct year-on-year, and IDC operation services were 18.95%, up 5.97 pct year-on-year. The decline in overall gross profit margin was mainly affected by factors such as depreciation and amortization caused by the company's new data center production and conversion, as well as the increase in electricity bills in Q4. The provision for bad debts caused by some IDC customers who have been listed on the shelves will have a certain impact on the annual performance. The company maintained steady operations in 2022Q1, with revenue and profits growing month-on-month.
increases the layout and delivery of data centers around first-line core areas. The company's data center business continues to focus on the first-tier, first-tier and emerging cities. As of the end of 2021, 12 computer rooms were laid out around the core urban areas, with a total of about 43,000 cabinets put into production, and the user listing rate exceeded 70%. The operating and reserve rack scale is nearly 100,000, and is expected to be gradually introduced to the market in the next five years. Among them, the first phase of Fangshan project has delivered all cabinets to customers, and the cabinet listing rate is close to 80%. Part of the Fangshan Phase II project will be sold and entered the electromechanical construction stage. It is expected to be delivered to customers for use in 2022Q2. Some cabinets have been put into production in the third and fourth phases of Yanjiao project. The first phase of the Tianjin Baodi project started successfully in November 2021. It is expected that the main construction of two data center buildings will be completed by 2022. In the future, it will be able to provide highly customized and scalable data center services to Beijing, Tianjin and Hebei users. The Shanghai Jiading project has the service capacity of 10,000 cabinets, all of which have been delivered to use, and the second phase project has been gradually put into production since 2021Q4, and some cabinets have been delivered to customers and have been put on the shelves one after another. The Hangzhou and Changsha projects have also entered the start-up stage. The company cooperates with China Telecom in Urumqi to build a data center computer room to explore the business market in the western region. At the same time, the company responded to the development concept of green data centers, promoted the energy-saving transformation of data centers, and cooperated with Hailanxin and others to participate in the construction of Hainan's world's first commercial undersea data center demonstration project.
public cloud business has grown steadily, and Advantech Industrial Cloud business has been fully implemented. Domestic cloud infrastructure maintains steady growth, and public cloud will be affected by Internet platform rectification and macroeconomics in the short term. Cloud computing still has broad development prospects in the medium and long term. The company's AWS public cloud business continues to grow, and Halo Youyun continues to provide users with cloud-based value-added services such as consulting, deployment, migration, operation and maintenance hosting in a multi-cloud environment with Amazon public cloud as the core. It has currently served multiple major customers and multiple industries. In 2021, Halou Youyun's revenue reached 250 million, an increase of 139% year-on-year. The policy of double-reduction in education for private cloud services and the epidemic have a great impact. At the same time, some private cloud customers have also switched to public clouds or built their own data centers. In March 2021, it signed a strategic cooperation agreement and an Advantech Industrial Cloud Operation Cooperation Agreement with Advantech Technology. Under the authorization and technical support of Advantech, Hilarious Cloud Data is independently responsible for the operation of WISE-PaaS industrial Internet of Things cloud service business and WISEMarketplace application store business in China.By clouding the business, more companies can easily realize low-code application development according to their own needs, and accelerate the process of promoting the digital transformation of enterprises. "
Investment advice: The data center of the Halo New Network is located in first-tier cities and surrounding areas, the operating cabinet scale is increasing, and the fixed code data center is deployed nationwide. Cloud computing undertakes AWS China business, and its subsidiaries improve the localized delivery and service capabilities of cloud computing, and increase market-oriented expansion efforts. Affected by the epidemic and double reductions, the company's business development rhythm has been adjusted. We adjust the company's profit forecast, and the company's expected net profit will be 978 million yuan, 1.172 billion yuan and 1.401 billion yuan from 2022 to 2024 (original forecast will be 1.169 billion yuan and 1.380 billion yuan from 2022 to 2023), corresponding to EPS will be 0.54 yuan, 0.65 yuan and 0.78 yuan respectively, maintaining the "buy" rating.
Risk warning event: the risk of intensified industry competition; IDC business And cloud computing business growth is lower than expected; risk of customer loss of business contracts, risk of industry policy changes, etc.
Securities Star Data Center calculates based on the research report data released in the past three years, the researcher team of West China Securities Liu Jueting has conducted in-depth research on the stock, with the average prediction accuracy in the past three years as high as 95.94%. It predicts that the attributable net profit in 2022 will be 1.121 billion yuan, and the forecast PE based on the current price conversion is 14.33.
The latest profit forecast details are as follows:
The stock has rated 6 institutions in the past 90 days, 5 buy ratings and 1 increase holding rating. Securities Star valuation analysis tool shows that the good company rating of Halo New Network (300383) is rated 3 stars, the good price rating is 3 stars, and the valuation comprehensive rating is 3 stars. (Rating range: 1 ~ 5 stars, up to 5 stars)
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