Financial Performance - The company achieved total revenue of 27,789.43 million yuan, a decrease of 0.01% compared to the previous year [2] - The net profit attributable to shareholders was -12,670.59 million yuan, down 6.07% year-on-year [2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -12,652.86 million yuan, a decline of 3.65% compared to the previous year [2] Business Operations - The IDC and value-added services maintained relatively stable operations, but traditional business segments like server hosting and internet access saw a decline in gross margin due to changes in customer demand [2] - The cloud service business has not yet reached the expected scale, and its benefits do not cover the depreciation impact from increased fixed assets [2] Industry Context - The company is positioned to leverage opportunities from national initiatives promoting digital transformation, new infrastructure, and emerging digital industries such as cloud computing and artificial intelligence [3][4] - The internet data center plays a crucial role in the development of the digital economy, acting as a strategic infrastructure for various industries [3][4] Future Outlook - The company aims to enhance its business layout and expand its scale in response to the national push for digital economy development [4] - Future strategies include upgrading to high-technology, high-computing, and high-efficiency cloud computing, while exploring innovative application scenarios through business collaboration [4]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable long-term growth outlook despite short-term challenges [4][6]. Core Insights - The company reported a revenue of 7.281 billion yuan in 2024, a decrease of 7.31% year-on-year, and a net profit attributable to shareholders of 381 million yuan, down 1.68% year-on-year. For Q1 2025, revenue was 1.832 billion yuan, a decline of 7.41%, with a net profit of 69 million yuan, down 57.82% year-on-year. The primary reasons for these declines are intensified competition and price reductions due to supply-demand imbalances [1][4]. - The company is actively expanding its Internet Data Center (IDC) business across various regions, including investments in Inner Mongolia and the launch of new projects in Tianjin. As of April 2025, the company has planned over 230,000 cabinets nationwide, with more than 59,000 already in operation [2]. - The cloud computing business remains stable, with the company providing extensive cloud services through its partnership with Amazon Web Services. The company has introduced nearly 500 new features or services since its inception, catering to various industries [3]. Financial Performance and Forecast - The company’s revenue is projected to recover slightly in 2025, with an estimated revenue of 7.694 billion yuan, reflecting a growth rate of 5.66%. However, net profit forecasts for 2025 and 2026 have been significantly reduced to 391 million yuan and 443 million yuan, respectively, due to ongoing competitive pressures [4][10]. - Key financial metrics indicate a decline in profitability, with a projected return on equity (ROE) of 3.0% in 2025, slightly improving to 3.7% by 2027. The price-to-earnings (P/E) ratio is expected to decrease from 65 in 2025 to 50 in 2027, suggesting a more attractive valuation over time [12][13]. Business Advantages - The company benefits from a strategic national layout for its IDC business, with a focus on resource advantages and technological service innovations accumulated over 20 years. This positions the company well for long-term growth despite current market challenges [3].