Chindata Group(US:CD)2021-11-24 17:11Financial Data and Key Metrics Changes - Quarterly revenue increased by 59% year-over-year to RMB 740.8 million, with GAAP net income at RMB 78.4 million and a net margin of 10.6% [7][24] - Adjusted EBITDA rose to RMB 368.4 million, reflecting a year-over-year increase of 61.6% with a margin of 49.7% [7][25] - Total IT capacity in service reached 370 megawatts, a 9 megawatt increase from the previous quarter, with a utilization ratio stable at 72% [6][13] Business Line Data and Key Metrics Changes - Utilized capacity increased by 17 megawatts over the quarter to 268 megawatts, indicating a year-over-year growth of 53.3% [6][24] - The company added approximately 9 megawatts in service capacity in response to client demand for high-density deployments [12] Market Data and Key Metrics Changes - The company achieved a confirmed demand of 27 megawatts capacity from a leading Chinese cloud computing service provider [9] - In Malaysia, a new green field project was launched with a capacity of over 80 megawatts, expected to be delivered in phases starting from 2022 [10] Company Strategy and Development Direction - Chindata is focused on a capacity build-up strategy and aims to support clients' rapid expansion and zero-carbon transformation in the Asia Pacific emerging market [5][14] - The company is committed to renewable energy and has established a green power consumption ecosystem, including direct green power trading and renewable energy power station development [15][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of power shortages on operations was very limited, attributing this to strategic geographic deployment in energy-abundant regions [23][42] - The overall demand for hyperscale data centers in the Asia-Pacific market is expected to remain healthy, with a greater demand for the company's unique hyperscale green field model [40] Other Important Information - The company has been recognized for its ESG initiatives, becoming a corporate member of the United Nations Global Compact and joining the RE100 initiative [18][19] - Fitch reaffirmed its BBB- investment rating for the company, indicating solid credit profile supported by strategic location and renewable energy use [8][17] Q&A Session Summary Question: Details on new major customer acquisition - Management confirmed the new project involves a top two Chinese cloud computing service provider, with a capacity of 27 megawatts to be delivered in phases [30][31] Question: Recent contract pricing trends - Management indicated that pricing remains stable, with a slight downward trend observed in the industry, but their unique model provides a competitive advantage [33][34] Question: Future growth direction in Southeast Asia - Management highlighted progress in Malaysia and Thailand, with ongoing exploration of opportunities in other Southeast Asian countries [37][39] Question: Impact of power crunch - Management stated the impact was minimal, with a focus on energy-abundant locations providing a competitive edge [41][42] Question: Green energy initiatives and CapEx outlook - Management emphasized the long-term strategy for renewable energy development and indicated that CapEx for next year is expected to be higher to support new projects [44][74] Question: M&A strategy - Management expressed interest in M&A opportunities but emphasized a stringent evaluation process to ensure synergies and reasonable valuations [68][70] Question: Current competition landscape and demand outlook - Management reiterated the importance of energy strategy and geographic deployment, expecting stable demand despite competition [51][53]