Sinnet(SZ:300383) Changjiang Securities·2025-09-10 14:41Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Viewpoints - In the first half of 2025, the company's IDC production accelerated, with revenue and profitability impacted by a large number of newly deployed cabinets and challenges in wholesale and retail business segments. The cloud computing business remains stable, contributing to a new paradigm of intelligent computing power. Overall, the company's performance may be under pressure in the short term due to increased depreciation and amortization from IDC business and reduced cloud computing revenue from the disposal of specific operating assets [2][6][11]. Summary by Relevant Sections Financial Performance - In H1 2025, the company achieved revenue of 3.72 billion yuan, a year-on-year decline of 5.1%. The net profit attributable to the parent company was 120 million yuan, down 57.0% year-on-year. In Q2 2025, revenue was 1.88 billion yuan, a year-on-year decrease of 2.8% and a quarter-on-quarter increase of 2.9% [6][11]. IDC Business - The IDC revenue for H1 2025 was 1.07 billion yuan, a decrease of 2.1% year-on-year, with a gross margin of 32.7%, down 1.8 percentage points. The decline was primarily due to the large number of new cabinets deployed, the impact of customer onboarding cycles in wholesale business, and price reductions in some retail projects. The company accelerated its data center deployment, with 16,000 new cabinets added, bringing the total operational cabinets to over 72,000, with an expected operational scale of approximately 320MW [11][12]. Cloud Computing Business - The cloud computing revenue for H1 2025 was 2.57 billion yuan, a year-on-year decrease of 7.7%, with a gross margin of 7.8%, down 1.7 percentage points. The decline was influenced by customer business adjustments and the company's proactive optimization of its customer structure. The company is leveraging its data center resources to integrate deeply with Amazon products, providing unified applications for generative AI [11][12]. Future Outlook - The company is expected to benefit from the current reversal in the IDC industry and significant demand driven by AI in the medium to long term. The projected net profit attributable to the parent company for 2025-2027 is 328 million yuan, 393 million yuan, and 476 million yuan, corresponding to PE ratios of 79x, 65x, and 54x respectively [11][12].