Dataport (603881): Wholesale IDC leader 5G traffic drives high growth

China’s leading wholesale data center service provider.

Dataport was established in 2009 and went public in 2017. With the wholesale data center as an entry point, a business model that focuses on wholesale data center services and supplemented by retail data center services has gradually formed, while also providing a small amount of data center value-added.service.

The actual controller of the company is the State-owned Assets Supervision and Administration Commission of Jing’an District, Shanghai. Mr. Zeng Li, the president of the company, has extensive industry experience and has a forward-looking strategic layout capability.

In terms of customers, the company first relied on Alibaba at the beginning of its establishment. Subsequently, it developed a number of Internet companies, cloud computing service providers, and enterprise end customers. The customer advantage was stable.Data center service provider.
As of the end of 2018, the company has operated a total of 15 data centers and has 7 core markets, with a total of 1 deployments.

04 thousand cabinets, is the leading wholesale data center service provider in China.

Technology fights the epidemic to 杭州桑拿 accelerate the online economy, and IDC’s long-term development space is better.

5G promotes the comprehensive expansion of communication needs from interpersonal communication to the Internet of Things, driving the growth of network connections and data traffic, the cloud computing industry is booming, Internet giants and operators continue to expand cloud computing, public cloud penetration continues to increase, private cloudsOn the same scale, the capital expenditure of North American cloud giant 19Q2-Q3 has improved significantly. As an alternative infrastructure for the Internet and cloud computing industry, its demand is highly related to the capital expenditure plan of cloud computing service providers. The domestic IDC marketIt has a large scale, but benefited from the rapid development of China’s Internet industry. It is expected that the Chinese IDC market will continue to grow in the next five years, reaching a market size of 255.8 billion by 2024.

With the outbreak of data center traffic, the data center has become more prominent in general, and it is developing towards a larger-scale centralized trend. Large-scale breakthrough third-party IDC service providers have strong customization capabilities, resource reserves, and O & M support capabilities, and scale service advantages. The long-term development space is better.
Alibaba Cloud’s strategic partners and rich resource reserves are the foundation for stable growth and growth in future performance.

The company has in-depth cooperation with major customers. Its customers cover a wide range of Internet companies. At the beginning of its establishment, it relied on Alibaba to build a number of data centers for Alibaba in series.Leading, covering cloud computing, big data, network security, artificial intelligence and other fields, in-depth cooperation with major customers, bringing continuity and certainty to the company’s business growth.

In terms of resources, the company’s data center has sufficient reserves. As of November 2019, the company has a total of 9 data centers under construction, with project yields above 10%, distributed in first-tier cities and surrounding first-tier cities. The company expanded in Shanghai and BeijingSelf-built data center resources are scarce.

In terms of operation, the company’s PUE and listing rate are higher than the domestic average, and the overall operating efficiency is high. Due to the stable customer benefits and continuous service period, the company’s three fees are stable, and the overall management is relatively good.

Investment suggestion: The company is the leading domestic wholesale data center service provider. 5G promotes the growth of network connections and data traffic. The cloud computing industry is booming. The data center is highly prominent, and the long-term development space is good.

The company’s data center has sufficient resources reserves and is distributed around cities and first-tier cities. Resources are scarce. At the same time, it has long-term and in-depth cooperation with major customers, bringing continuity and certainty to business growth.

We expect the company’s net profit for 2019-2021 to be 1.

One in 2.8 billion.

56 ppm / 2.

93 trillion, EPS is 0.

61/0.

74/1.

39. The first coverage was given a “Buy” rating.

Risk reminder events: Cabinet power-on progress is less than expected, new business expansion is less than expected, single large customer depends on risk, systemic risk