润泽科技20241211

Key Points Company and Industry 1. Focus on Rongze Technology: The call emphasizes the strong performance of Rongze Technology, with a 13.6% increase in stock price, and reiterates the team's focus on the company as a key recommendation. 2. ByteDance's Impact: The rise in Rongze's stock is attributed to ByteDance's recent performance, highlighting the company's strong user base and overall effectiveness. 3. Volcano Engine Conference: The recent Volcano Engine conference has also contributed to the increased attention on ByteDance and, by extension, Rongze Technology. Core Views and Arguments 1. IDC and AIDC Dual Leader: Rongze Technology is positioned as a dual leader in IDC and AIDC, emphasizing its strong presence in both sectors. 2. IDC Industry Growth: The IDC industry is expected to benefit significantly from the development of AI applications, with a growing demand for data centers. 3. Energy Efficiency Improvement: Rongze's energy efficiency has improved by 60% from the end of 2023 to the first half of 2024, with a planned 320,000 cabinet capacity. 4. Customer Trends: The demand for data centers is shifting towards wholesale and park-level data centers, driven by the need for improved safety and reliability following past incidents involving internet giants. 5. Rongze's Unique Selling Points: Rongze's ability to secure orders from key internet giants, such as ByteDance, is attributed to its scarce land in Langfang with 130,000 cabinets and its proven ability to expand to other regions like Pinghu and South China. 6. AIDC Leadership: Rongze's leadership in AIDC is demonstrated by its high-power cabinet layout in Langfang and its significant AIDC revenue of 2.054 billion yuan in the first half of 2024. 7. Performance Certainty: Rongze has performance guarantees for the years 2021 to 2024, with a profit guarantee for 2024 and a target for 2025 to 2027 to achieve a 50%, 75%, and 100% increase in net profit respectively. Other Important Points 1. Delivery Timelines: The average delivery timeline for an IDC data center is 24 months, with Rongze having eight data centers in operation in Langfang and five more delivered in 2023, providing a strong foundation for future growth. 2. ByteDance as a Key Customer: Rongze's ability to secure orders from ByteDance, a key customer, is a significant factor in its performance and future growth prospects.