Precise(SZ:300442)2024-06-04 10:00Investment Rating - The report initiates coverage with an "Outperform" rating for the company, setting a target price of RMB 41.42 for 2024 [5][14]. Core Insights - The company, established in 2009, operates in the IDC and AIDC sectors, providing server hosting and intelligent computing services, with significant revenue growth driven by the new AIDC business [12][13]. - In 2023, the company reported revenue of approximately RMB 43.51 billion, a year-on-year increase of 60.27%, and a net profit of about RMB 17.62 billion, up 47.03% year-on-year [2][4]. - The rapid advancement of AI technology is driving the demand for intelligent computing power, positioning AIDC centers as essential infrastructure [13]. Revenue and Profit Growth - The company achieved a revenue of approximately RMB 12.42 billion in Q1 2024, reflecting a year-on-year growth of 53.65%, with a net profit of about RMB 4.74 billion, up 43.81% year-on-year [2][12]. - The AIDC business contributed approximately RMB 11.99 billion to the total revenue in 2023, marking a significant expansion [2][5]. Business Expansion and Infrastructure - The company has established a national integrated computing power center system, with 61 computing centers and around 320,000 rack resources across six core regions [3][13]. - Plans for 2024 include accelerating the construction of new intelligent computing centers to support high-complexity AI model training [3][14]. Financial Forecast - Revenue projections for 2024-2026 are RMB 58.14 billion, RMB 77.31 billion, and RMB 99.67 billion, with expected year-on-year growth rates of 33.64%, 32.96%, and 28.93% respectively [5][14]. - Net profit forecasts for the same period are RMB 22.27 billion, RMB 30.83 billion, and RMB 40.49 billion, with corresponding growth rates of 26.42%, 38.42%, and 31.32% [5][14].