Precise(300442) 华创证券·2024-06-12 22:30Investment Rating - The report gives a "Buy" rating for the company with a target price of 38.21 CNY, based on a 30x PE for 2024 [4][10]. Core Insights - The company has shown strong performance in the data center sector, with a significant increase in revenue and net profit over the years. From 2018 to 2023, revenue grew from 628 million CNY to 4.351 billion CNY, reflecting a CAGR of 47.27%. Net profit increased from 127 million CNY to 1.762 billion CNY, with a CAGR of 92.99% [2][21]. - The company is positioned as a leader in the AIDC (Artificial Intelligence Data Center) sector, with a robust infrastructure and strategic location advantages across six core regions in China [2][9]. - The demand for data centers is expected to surge due to the growth of AI and cloud computing, with the company poised to benefit significantly from this trend [3][10]. Summary by Sections Company Overview - The company has established itself as a leading provider of large-scale, high-performance data centers since its inception in 2009. It has built seven AIDC infrastructure clusters across six major regions in China, with plans for 61 intelligent computing centers and 320,000 cabinets [2][14]. Financial Performance - The company reported a revenue of 4.351 billion CNY in 2023, a year-on-year increase of 60.3%. The net profit for the same year was 1.762 billion CNY, reflecting a growth of 47.0% [21][22]. - The gross margin has remained stable between 45% and 55% since 2019, indicating strong operational efficiency [22][24]. Market Trends - The IDC industry is experiencing a boom driven by advancements in big data, cloud computing, and AI technologies. The report highlights that the demand for data center services is expected to grow exponentially [2][10]. - The company is leveraging its technological advantages, such as liquid cooling and high-density power cabinets, to meet the increasing demand for computing power [3][10]. Competitive Advantages - The company has several competitive advantages, including strategic location, high cabinet utilization rates (over 90%), and a self-built, self-operated model that enhances service quality and customer loyalty [2][9]. - The company has established long-term contracts with major clients, ensuring a stable revenue stream and lower sales expense ratios compared to peers [2][9]. Future Outlook - The company is expected to continue its growth trajectory, with projected net profits of 2.191 billion CNY, 3.303 billion CNY, and 4.161 billion CNY for 2024, 2025, and 2026, respectively [10][21]. - The report anticipates that the AIDC business will become a significant growth driver, contributing to the company's second growth curve [3][10].