Dataport (603881): Third-party IDC star with promising growth

Dataport (603881): Third-party IDC star with promising growth

The third-party IDC Nebulas with promising growth has become an important driving force for the development of the IDC industry. At present, the company mainly focuses on wholesale data center services and is an important partner for the construction and maintenance of Alibaba Cloud data centers. It is expected to benefit from Alibaba CloudThe rapid growth of computing business.

In addition, the company is deploying retail IDC and cloud computing value-added services to cultivate new growth points.

We believe that from the perspective of IDC’s business characteristics and the US stock market’s assessment of IDC companies, it is recommended to use the EV / EBITDA method for estimation.

Comparable companies have an average EV / EBITDA multiple of 19 in 2019.

9x, we expect the company’s EBITDA to be 4 in 2019.

4.9 billion, we think the company is a leader in the domestic wholesale IDC field, giving 2019 EV / EBITDA19?
20x, corresponding to a target price of 39.

77?

41.

90 yuan, for the first time, give “overweight” rating.

Cloud computing has become an important driving force for the development of IDC. According to the statistics of the Information and Communication Academy, the public cloud market size reached approximately 264 in 2017.

80,000 yuan, an annual increase of 55.

7%.

Expected 2018?
In 2021, the compound growth rate of the previous public cloud market was 35.

9%, the total market size is expected to reach 902 by 2021.

600 million.

IDC is a cloud computing infrastructure that will benefit from the development of the cloud computing industry.

According to IDC circle predictions, 2019?
The compound growth rate of IDC market is expected to reach 30 in 2021.

98%, to reach 2759 by 2021.

600 million.

Enhanced operation management and cost control capabilities, winning the bid for the expansion of Alibaba’s data center project. We believe that excellent operational management capabilities (beyond the industry average PUE) and cost control capabilities (data center life cycle management) are the key to the company’s differentiation from the industry.The factors are also the basis for the company to become an Alibaba data center construction and maintenance partner.

In March 2019, the company’s memorandum of cooperation with Ali’s senior management will build an operation and maintenance data center project for Ali. According to different methods of paying electricity bills, this project will bring a total of 40 to the company.

4.4 billion in revenue (ten-year contract, electricity bills paid by customers) or 82.

8 billion in revenue (ten-year contract, electricity bills to be paid by the company), solidifying the foundation for growth.

Layout of retail IDC business and cloud computing value-added business to cultivate new performance growth points We believe that the company will gradually develop retail data center business on the basis of maintaining the existing advantages of the wholesale business. In 2018, the company acquired the COFCO Fangshan project and began to enterBeijing market.

In addition, the company is expected to expand its business from IDC to cloud computing value-added services by relying on the partnership established with Ali in the IDC business.

In March 2019, the company issued an announcement that it had a multi-year business cooperation agreement with Alibaba Cloud, underwriting not less than 4 within 6 years.

3.5 billion Alibaba Cloud products / services.

We believe that the company’s layout in the retail IDC and cloud computing value-added business areas will create new performance growth points for the company.

The third-party IDC star who can be expected to grow, for the first time, gives an “overweight” rating. We expect the company to be in 2019?
In 2021, the EPS will be 0.

82/0.

84/1.

57 yuan, in terms of estimation, we believe that from the perspective of IDC’s business characteristics and the US stock market for IDC enterprises, it is recommended to use the EV / EBITDA method for estimation.

Comparable companies have an average EV / EBITDA multiple of 19 in 2019.

9x, we expect the company’s EBITDA to be 4 in 2019.
4.9 billion, we think the company is an outstanding leader in the domestic wholesale IDC field, giving 2019 EV / EBITDA 19?
20x, corresponding to 无锡夜网 a target price of 39.

77?41.

90 yuan, for the first time, give “overweight” rating.

Risk warning: The cabinet power-on progress is less than expected; the retail business expansion is less than expected.