KEHUA HENGSHENG(002335) 长江证券·2024-11-12 06:37Investment Rating - The report maintains a "Buy" rating for Kehua Data (002335 SZ) [3] Core Views - Kehua Data's Q3 2024 revenue declined by 21 02% YoY to RMB 1 663 billion, with net profit attributable to shareholders dropping by 89 92% YoY to RMB 12 million [1][3] - For the first three quarters of 2024, revenue decreased by 1 97% YoY to RMB 5 393 billion, while net profit attributable to shareholders fell by 46 53% YoY to RMB 238 million [1][3] - The company's IDC and data center product revenue is expected to turn positive in Q3 2024, while new energy business revenue declined significantly due to price drops and domestic business contraction [4] - Kehua Data is increasing investment in R&D and overseas market expansion, which is expected to yield results in the future [4] Financial Performance - Q3 2024 gross margin was 27 21%, with data center and smart power businesses maintaining stable margins [4] - The expense ratio in Q3 2024 increased by 12 78 percentage points QoQ to 24 3%, driven by R&D, employee incentives, and overseas expansion costs [4] - Asset impairment losses of RMB 26 million and credit impairment losses of RMB 21 million were recorded in Q3 2024, partly recoverable [4] Future Outlook - Global data center construction is accelerating, with IDC rental prices stabilizing in Q3 2024 [5] - Industrial equipment replacement and AI-driven smart power demand are expected to drive growth in data-related businesses in 2025 [5] - The new energy business is making breakthroughs in overseas markets, potentially benefiting from high demand for large-scale energy storage [5] - The report forecasts net profit attributable to shareholders of RMB 450 million in 2024 and RMB 700 million in 2025, with corresponding P/E ratios of 27x and 18x [5] Company Fundamentals - Current stock price is RMB 26 87 as of November 7, 2024 [6] - Total share capital is 461 57 million shares, with 400 83 million A-shares in circulation [6] - Net asset per share is RMB 9 50 [6] - The stock's 12-month high/low prices are RMB 33 00 and RMB 16 66 respectively [6]