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Zhengtong Electronics (002197) Important Matters Comment: IDC Wins Bid for Ping An’s 2.6 Billion IDC + Ecological Strategy Steady Progress
The company ‘s IDC business was approved for a large amount of US $ 2.6 billion in orders. The number of racks / on-boarding rate has increased. The certainty has increased. The increase in the proportion of financial customers has driven the growth of single rack revenue. Lighting electronics / cloud computing has made progress.Advance.We slightly raised our EPS forecast for 2020 to zero.47 yuan (the original value is 0.46 yuan; maintain 2018/2019 EPS forecast of 0.01/0.(32 yuan unchanged), maintaining the EBITDA forecast for 2018/2019/2020 to 1.7/3武汉夜网论坛 .9/5.10,000 yuan, maintaining 21 times the EV / EBITDA target for 2019, corresponding to a target price of 12.90 yuan, corresponding to 40 times PE in 2019, and maintain a “Buy” rating. IDC received 2.6 billion large orders, and lighting electronics / cloud computing made progress.The company’s latest announcement: 1) The wholly-owned subsidiary “Zhentong Cloud Computing” has been recognized by national emerging companies and enjoys a preferential return of 15% for three consecutive years. The company’s return in 2017 is 20% (March 14); 2) Signed a contract for the construction of a photovoltaic poverty alleviation power plant with “Wison Energy” for a total price of 1.0.6 billion, accounting for 6 of 2017 revenue.3% (March 20); 3) Winning the bid for China Southern Airlines’ 2019-2020 development and test expansion procurement project (March 20); 4) Winning the bid for “Ping An Technology” 2019 computer room project, involving a 10-year lease of 2,620 cabinets,The total price is 2.6 billion (March 21). The increase in the number of racks / shelf rate has increased the certainty, and the increase in the proportion of financial customers has driven the growth of single rack revenue.At the end of 2017, the company listed 4,200 cabinets (Guangzhou Nansha / Dongjieshi exhaustion), and in 2018 with “Ping An Communication” (Shenzhen Guangming 1,454 cabinets 8 years 8).8.5 billion) and “Changsha Mobile Valley” (1500 cabinets in Changsha Cloud Valley) for 10 years7.1.1 billion) large-scale contracts were drilled, and it is expected that in January / December 2019, Dongfeng Qifeng / Changsha Yungu will increase to 3500/4500 cabinets.The successful bid of the “Ping An Technology” project released this time demonstrates the firmness of the company’s IDC rack count / shelf rate.In addition, according to the company’s IDC revenue in 2016/2017 and the bid winning situation in the past year, the single cabinet revenue of operators / internet / financial customers is about 5/6 / 8-100,000 yuan, and the increase in the proportion of financial customers brings single cabinet revenue growth.Drive the company’s gross profit margin further growth. 1.The 50,000 cabinets were deployed in the Guangdong-Hong Kong-Macao Greater Bay Area, and the “IDC + Ecology” strategy was steadily advanced.High traffic growth / Moore’s law can continue to promote long-term demand for IDC, and supply in first-tier cities is in short supply; cloud computing is developing rapidly, and the IDC market is expected to maintain 30% growth; investment in smart cities / smart parks is growing rapidly and there is huge room for growth.The company started IDC construction in 2015, implemented the “IDC + Ecology” strategy in collaboration with traditional businesses, and worked on value-added services such as cloud computing / smart finance / smart cities / smart parks.The recent series of announcements fully demonstrate the steady progress of the company’s strategy and gradually continue to increase the company’s business value-added. Risk factors: IDC’s expansion and increase of listing rate are less than expected, and the contract signing and terms of the winning project are uncertain. Investment suggestion: Taking into account the timing adjustment of the “Ping An Technology” IDC order landing and execution, based on the practicable principle, slightly raise the EPS forecast for 2020 to 0.47 yuan (the original value is 0.46 yuan; maintain 2018/2019 EPS forecast of 0.01/0.(32 yuan unchanged), maintaining the EBITDA forecast for 2018/2019/2020 to 1.7/3.9/5.10,000 yuan, maintaining 21 times 天津夜网the EV / EBITDA target for 2019, corresponding to a target price of 12.9 yuan, corresponding to 40 times PE in 2019, and maintain a “Buy” rating.