Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to various factors impacting performance in the short term [1][2]. Financial Performance - In 2025 H1, the company achieved revenue of 3.72 billion yuan, a year-on-year decrease of 5.1% [1][2]. - The net profit attributable to shareholders was 120 million yuan, down 57.0% year-on-year [1][2]. - EBITDA for 2025 H1 was 720 million yuan, reflecting a decline of 1.8% year-on-year [2]. IDC Business Insights - IDC revenue for 2025 H1 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 [3]. - The company accelerated the deployment of data centers, with 16,000 new cabinets installed, bringing the total to over 72,000 cabinets and an operational scale of approximately 320 MW [3]. - Specific projects include the completion of the first phase in Tianjin and ongoing construction in Inner Mongolia and the Yangtze River Delta region [3][4]. Cloud Computing Business - Cloud computing revenue for 2025 H1 was 2.57 billion yuan, down 7.7% year-on-year, with a gross margin of 7.8%, a decrease of 1.7 percentage points [4]. - The decline was attributed to client business adjustments and proactive optimization of the customer structure [4]. - The company is leveraging AI technology and has signed a strategic cooperation agreement to enhance its computing infrastructure for generative AI applications [4]. Investment Outlook - The company is expected to face short-term performance pressure due to increased depreciation and the disposal of specific operational assets related to public cloud services, which will reduce cloud computing revenue by approximately 100 million yuan in 2025 [2][5]. - However, the IDC industry is anticipated to rebound, driven by significant demand from AI, suggesting potential long-term benefits for the company [5]. - Projected net profits for 2025-2027 are 328 million yuan, 393 million yuan, and 476 million yuan, with corresponding P/E ratios of 79x, 65x, and 54x [5].

Investment 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].