Investment Rating - Buy rating maintained with a target price increase to HKD 22.88, implying a potential upside of 29.3% [1][3][10] Core Views - Strong performance in international business drives target price upgrade [1] - Q3 2024 results meet expectations with revenue of RMB 2.97 billion, up 17.7% YoY, and adjusted EBITDA of RMB 1.30 billion, up 15.0% YoY [1][6] - Full-year 2024 revenue guidance maintained at RMB 11.34-11.76 billion, with adjusted EBITDA expected to be RMB 4.95-5.15 billion [1][6] - CAPEX guidance for 2024 increased from RMB 6.5 billion to RMB 11.0 billion to support accelerated expansion in both domestic and international markets [1] Domestic Business - Q3 2024 domestic revenue reached RMB 2.62 billion, up 6.1% YoY, with adjusted EBITDA of RMB 1.21 billion, up 3.6% YoY [2] - Adjusted EBITDA margin for domestic business declined by 1.0 ppt YoY to 43.7% [2] - Newly added operational area in Q3 2024 was 25,647 sqm, significantly higher than 20,265 sqm in Q2 2024 [2] - Total operational area in China for the first three quarters of 2024 reached 62,744 sqm, surpassing the full-year 2023 figure of 48,739 sqm [2] International Business - Secured a large-scale contract in Batam with a committed/reserved capacity of 34/38MW, expected to be operational within 18 months [2] - Announced a multi-billion RMB investment in Thailand for a data center campus with a planned power capacity of 120MW [2] - Total locked capacity for international clients reached 431MW by Q3 2024, up from 111MW in Q3 2023 and 388MW in Q2 2024 [2] Financial Performance - Q3 2024 service revenue increased by 17.7% YoY to RMB 2.97 billion, with a 4.9% QoQ growth [6] - Adjusted gross profit rose by 20.4% YoY to RMB 1.50 billion, with an adjusted gross margin of 50.7% [6] - Operating area reached 595,606 sqm, up 9.9% YoY, with a utilization rate of 73.6% [6] - Total committed and pre-committed area increased by 3.5% YoY to 626,783 sqm [6] Industry Coverage - The report also covers other data center companies such as SUNeVision Holdings (1686 HK) with a Buy rating and a target price of HKD 4.50, and 21Vianet Group (VNET US) which is unrated [10]
万国数据-SW：国际业务进展良好，上调目标价