Dataport (603881): Ali’s entry into cloud services: room for long-term growth

This report reads: Leveraging Alibaba’s momentum and cutting into cloud value-added services, the 100 billion blue ocean market is open to the company; projects such as ZH13 are progressing smoothly, strengthening the market’s confidence in the company’s continued expansion of performance.

Investment Highlights: Upgrade to “overweight” level.

Based on optimism about the company’s future cloud value-added service business and enhanced certainty of projects such as ZH13, we raise the profit forecast for 2019-2020.
The net profit attributable to mothers will be 1 in 2021.

8.1 billion (+6.

5%), 2.

2.1 billion (+ 10%) and 2.

960,000 yuan, the corresponding EPS is 0.

86 yuan, 1.

05 yuan and 1.

41 yuan.

Reference comparable companies 2019 average 28.

5x EV / EBITDA, giving the company 27x EV / EBITDA in 2019, raising the target price to 50.

47 yuan (+ 61%).

Leveraging the momentum of Alibaba and cutting into cloud value-added services, the 100 billion blue ocean market is open to the company.

The company and Alibaba Cloud’s “Business Cooperation Agreement” will reach a total amount of cooperation underwriting of no less than 4 within 6 years.

3.5 billion Alibaba Cloud products / services.

The first cooperation exceeded market expectations: 1) The business model of IDC + cloud value-added services has been proven to be feasible in GDS, Halo New Network, and VNET for industry companies. The market space for cloud value-added services is 4 times that of the cloud computing market, and the growth space for data ports;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

Projects such as ZH13 are progressing smoothly, strengthening market confidence in the company’s continued expansion of performance.北京桑拿洗浴保健

In May 2018, the company received the letter of intent for demand for five customized data centers such as Alibaba ZH13 and formally entered into a memorandum of cooperation in the near future.

The Ali project progressed smoothly, dispeling market doubts about the company’s IDC expansion, and strengthened the confidence of Ali Cloud’s huge demand for IDC.

catalyst.

After receiving the construction notices of Alibaba ZH13 and other projects, the HB33 and other computer rooms were successfully delivered and put into operation.

risk warning.

The risk of customers being too concentrated, the risk of increased market competition.