Sinnet(300383) HTSC·2025-05-08 06:53Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 17.36 per share, up from a previous value of RMB 11.12 per share [7][4]. Core Views - The company's revenue and net profit for 2024 are projected to be RMB 7.281 billion and RMB 381 million, respectively, reflecting a slight year-on-year decline of 7.31% and 1.68% [1][6]. - In Q1 2025, the company reported revenues of RMB 1.832 billion and a net profit of RMB 69 million, showing a year-on-year decrease of 7.41% and 57.82% [1][2]. - The decline in revenue is attributed to the expiration of specific operational assets related to Amazon Cloud and some clients vacating due to strategic adjustments [1][2]. - Despite short-term pressures, the company is accelerating the deployment of new data center projects, which are expected to contribute positively to future earnings [2][3]. Summary by Sections Financial Performance - The company's data center business achieved revenues of RMB 20.89 billion and RMB 5.21 billion in Q1 2025, with year-on-year declines of 5.96% and 4.01% respectively [2]. - The cloud computing business reported revenues of RMB 51.02 billion and RMB 12.54 billion, down 7.98% and 11.41% year-on-year [2]. - The gross margin for Q1 2025 was 16.55% and 15.14%, with a slight decline primarily due to the impact of Amazon Cloud asset disposals [3]. Project Developments - The company is actively advancing its data center projects, with the first and second phases in Tianjin Baodi set to be delivered in the first half of 2025, and construction of the third phase already underway [2][3]. - New projects in Inner Mongolia are also being pushed forward, indicating a proactive approach to meet the growing demand driven by AI [2][3]. Earnings Forecast - The EBITDA forecast for 2025-2027 is adjusted to RMB 15.71 billion, RMB 17.08 billion, and RMB 18.31 billion, reflecting a downward revision of 19% and 22% for 2025 and 2026 respectively [4][6]. - The expected revenue for 2025 is RMB 7.735 billion, with a projected growth of 6.24% in 2026 and 12.10% in 2027 [6][22]. - The net profit forecast for 2025 is RMB 416 million, with subsequent increases to RMB 502 million in 2026 and RMB 599 million in 2027 [6][22].