Investment Rating - The report assigns an "Outperform" rating to the company, indicating an expectation of relative performance exceeding the market benchmark over the next 12-18 months [4][12]. Core Insights - The company is experiencing short-term performance pressure but is focusing on AIDC and computing power as new growth drivers. Despite challenges from intense IDC industry competition and client lease terminations, the company achieved revenue of RMB 5.48 billion and a net profit of RMB 144 million in the first three quarters of 2025. The company is strategically positioned in key regions and is developing intelligent computing centers, which may benefit from AI-driven demand growth [4][12][13]. Financial Summary - Total revenue for 2023 is projected at RMB 7.855 billion, with a decrease to RMB 7.281 billion in 2024, followed by a recovery to RMB 7.663 billion in 2025. The net profit attributable to shareholders is expected to decline from RMB 388 million in 2023 to RMB 317 million in 2025, before increasing to RMB 534 million by 2027 [3][5]. - The company's earnings per share (EPS) are forecasted to be RMB 0.18 in 2025, RMB 0.22 in 2026, and RMB 0.30 in 2027, with a target price set at RMB 15.99 based on a valuation of 22 times enterprise multiple, slightly below the industry average of 22.7 times [4][12]. Industry Overview - The IDC industry is facing increased competition, leading to pressure on rental prices. Despite this, the company's IDC business achieved stable growth with a revenue increase of 1.53% year-on-year, totaling RMB 1.67 billion in the first three quarters of 2025 [13]. - The cloud computing segment has been impacted by the disposal of specific operational assets, resulting in a revenue decline of 9.83% year-on-year to RMB 3.72 billion, with a gross profit margin of 7.30% [14]. Strategic Initiatives - The company is increasing its cabinet deployment, with over 72,000 cabinets operational and more than 16,000 new cabinets deployed in the current year. The planned cabinet scale nationwide exceeds 230,000, with ongoing projects expected to enhance scale effects [15]. - The company is also expanding its high-performance computing power business, currently exceeding 4,000P, which is anticipated to drive new growth [15].