Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown steady revenue growth, with a projected revenue increase of 26.36% in 2025, reaching 5.08 billion yuan [1] - The new computing power operation service has contributed significantly to revenue, with a 29.20% increase in this segment [8] - The telecommunications business is steadily rising, driven by the growth in AI and computing power demand [8] - The company is actively expanding its computing power service business and has established a new base to support future growth [8] - The earnings forecast for 2025-2027 indicates a consistent increase in net profit, with expected EPS of 0.35 yuan in 2025 and 0.61 yuan in 2027 [1] Financial Summary - Total revenue for 2023 is projected at 4.21 billion yuan, with a year-on-year growth of 23.30% [1] - The net profit attributable to shareholders is expected to reach 380.3 million yuan in 2025, reflecting a growth rate of 39.31% [1] - The company's P/E ratio is projected to decrease from 79.31 in 2025 to 45.72 in 2027, indicating improving valuation [1] - The gross margin is expected to stabilize around 22.45% to 23.48% over the next few years [9]

Core Viewpoint - The company, China Bester Group Telecom Co., Ltd., is planning to issue A-shares to specific investors, aiming to raise funds for its ongoing projects in 5G infrastructure and intelligent computing services, while also addressing its financial obligations [1][9]. Company Overview - The company is based in Wuhan, Hubei Province, and was established on December 29, 1999, with a registered capital of 433,978,322 yuan [1]. - It specializes in communication network technology services and is expanding into intelligent computing, aiming to become a leading service provider in this field [2][3]. Main Business Activities - The company provides services related to 5G infrastructure, including network planning, design, implementation, and maintenance [3]. - It operates in various regions, including domestic provinces and international markets along the Belt and Road Initiative, serving major telecom operators [3]. - The company is also involved in intelligent computing solutions, offering design, construction, and operational services for computing clusters [3]. Financial Data - As of March 31, 2025, the total assets amounted to 796,889.50 million yuan, with total liabilities of 582,744.48 million yuan, resulting in total equity of 214,145.02 million yuan [4][5]. - The company reported a revenue of 54,948.16 million yuan for the first quarter of 2025, with a net profit of 1,696.63 million yuan [5][10]. - The asset-liability ratio was 73.13% as of March 31, 2025, indicating a high level of leverage [5]. Fundraising and Investment Plans - The company plans to raise up to 192,023.48 million yuan through this issuance, which will be allocated to projects including intelligent computing centers and 5G network construction [13]. - The total investment for these projects is estimated at 213,654.24 million yuan, with the company prepared to adjust funding allocations based on actual fundraising outcomes [13]. Issuance Details - The A-shares will be issued to no more than 35 specific investors, including qualified institutional investors and other eligible entities [11][12]. - The pricing for the shares will be based on the average trading price over the 20 trading days prior to the pricing date, with adjustments for any corporate actions [12]. Risk Factors - The company faces potential risks related to the pace of 5G infrastructure development and competition in the intelligent computing sector, which could impact its operational performance [7][8]. - The company’s increasing capital expenditure and rising asset-liability ratio may pose challenges if financing conditions worsen or if there are significant changes in the industry environment [8].

Group 1 - The company reported a revenue of 549 million yuan for Q1 2025, representing a year-on-year decrease of 24.67% [1] - The net profit attributable to shareholders was 18.82 million yuan, down 59.49% year-on-year [1] - The decline in revenue was primarily due to a 27.53% decrease in income from 5G infrastructure business, the new energy battery production line being in the ramp-up phase, and an increase in financial expenses by over 22 million yuan [1] Group 2 - The company's intelligent computing business achieved a revenue of 135 million yuan, showing a significant year-on-year growth of 972.79% [1]

Core Insights - The company reported a revenue of 1.665 billion yuan for the fiscal year 2024, marking a year-on-year growth of 22.54%, with a net profit attributable to shareholders of 18.8614 million yuan [1] - In Q1 2025, the company achieved a revenue of 345 million yuan and a net profit of 3.42 million yuan, indicating a turnaround from losses, primarily due to the growth in its digital marketing business [1] Digital Marketing Business - In 2024, the digital marketing service segment generated 892 million yuan in revenue, a significant increase of 60.38%, accounting for 53.98% of total operating revenue, with a gross margin increase of 4.48% [2] - The company has established a comprehensive digital marketing ecosystem that integrates products, platforms, and data, leveraging AI technologies for user analysis and marketing content creation [2] Product and Service Diversification - The company has developed a diversified product matrix that includes both digital and physical goods, covering over a thousand categories in digital services and various consumer electronics [3] - The company has achieved extensive coverage across multiple e-commerce platforms and has established strategic partnerships with major players like Alibaba, ByteDance, and Tencent [3] 5G Infrastructure Business - The 5G infrastructure segment generated 548 million yuan in revenue in 2024, representing 33.19% of the main business revenue, with stable growth and recognition from major clients [3] - The company has been awarded for its service capabilities and has maintained a strong market presence in key regions [3] Low-altitude Economy Business - The company completed a strategic acquisition of 100% of Shanghai Liontail Intelligent Technology Co., expanding into the low-altitude economy sector with a focus on high-safety airborne control systems and drone inspection services [4] - The company's drone inspection case for urban high-rise buildings has been recognized as a top application scenario in Hangzhou's low-altitude economy [4] R&D Investment and Talent Acquisition - In 2024, the company invested 73.507 million yuan in R&D, a 23.08% increase, representing 4.41% of total revenue, and expanded its R&D team to 333 personnel, making up 40.31% of the total workforce [6] - The company aims to attract high-end talent in low-altitude economy and AI algorithm fields to support its long-term strategic goals [6] Strategic Vision - The company is focused on integrating its three main business areas: digital infrastructure, digital marketing, and low-altitude economy, to transform into a leading digital technology enterprise [6]

Core Insights - The company reported a revenue of 2.984 billion yuan for 2024, marking a year-on-year increase of 4.28%, with a net profit of 145 million yuan, up 0.66% [1] - The total assets of the company reached 8.088 billion yuan by the end of 2024, reflecting a significant year-on-year growth of 31.73% [1] Group 1: Intelligent Computing Business - The intelligent computing business achieved remarkable growth, generating revenue of 269 million yuan, a staggering year-on-year increase of 3696.16% [2] - The gross margin for the intelligent computing business exceeded 41%, making it the top-performing segment within the company [2] - The company has invested approximately 3 billion yuan in intelligent computing clusters, with operational computing power exceeding 15,000 P [2] - The company secured contracts worth about 2.5 billion yuan in intelligent computing services, including a recent order from Beijing Wanjie worth 441 million yuan [2] - The company is optimistic about the application of artificial intelligence across various sectors, leveraging its computing resources to collaborate with major model enterprises [2] Group 2: 5G Infrastructure and New Energy - The 5G infrastructure business generated revenue of 1.968 billion yuan in 2024, despite a year-on-year decline of 12.13% due to reduced investment from telecom operators [3] - The company managed to reduce costs by 14.13% year-on-year, resulting in a gross margin increase of 1.9 percentage points [3] - The company made significant progress in projects in Hubei and Hebei, and saw a substantial increase in overseas project bids [3] - In the new energy sector, the company formed a strategic partnership with Fudi Battery and introduced advanced production lines from BYD, with trial production set to begin in January 2025 [3] Group 3: Fundraising and Strategic Development - The company announced a plan to raise up to 1.922 billion yuan through a private placement, focusing on intelligent computing centers and 5G network construction [4] - This fundraising initiative is aimed at strengthening the company's core business and enhancing its competitive edge in the market [4] - The successful fundraising will improve the company's asset and liability structure, leading to increased profitability and core competitiveness [4]