Who has a father who doesn’t rely on himself?
IDC industry Hengping: Who gets up early to catch up late?
Who has a father who doesn’t rely on himself?
Who gets up early and catches up late?
Who has a father who doesn’t rely on himself?
IDC Industry Hengping: Halo New Network, Dataport, Baoxin Software, Dr.
Peng, Enterprise WeChat, Jinshan, etc. have extended tolerances on server resources, indicating that the investment in cloud infrastructure in these regions is still significantly insufficient.
Driven by the development of downstream industries such as 5G, cloud computing, and artificial intelligence, IDCs (data centers) as upstream infrastructure continue to benefit, and may soon enter the fast track for expansion.
What is the business model of this industry?
How are the main players competing?
This article will make a comparative study of four A-share listed companies: Halo New Network (300383).
SZ), Dataport (603881.
SH), Baoxin Software (600845.
SH) and Dr. Peng (600804.
Speaking of which, Feng Yunjun is just as kind as seeing an old friend, it is simply “if you have friends from afar, you will be stunned.”
Come here, let’s first recall Feng Yunjun’s “old friends”: Halo New Network: Multiple mergers and acquisitions supporting shareholders to reduce their holdings, “A good show: reducing holdings to cash out, mergers and acquisitions under the” two-wheel drive “”Halo New Network and Huge Goodwill”; Dr. Peng: Contradictions in the retreat of executives in business restructuring, “Dr. Peng: Achievements and personnel turmoil together, and the benefits are the same as the reduction of holdings”, which considers the details of financial and capital operationsanalysis.
Of course, the market value of Fengyun is an independent third party that is relatively rare in China. The core norm of research attitude is to seek truth from facts. Some say good, good, and bad, and of course it is impossible to be a routine man.There are also many good comrades who have invested in value. Some Baoxin software has inspirational stories that dad can’t fight without their own efforts. “You can fight with dad, but you need to work hard with Baoxin software: Office software services during the epidemic.”Enterprise Hengping.
Therefore, among the four Hengping companies selected here, Feng Yunjun has thoroughly researched three of them. In fact, it is basically clear. It is not necessary to talk about whether it is a sister-in-law or a horse. It is useless to say more.
The data port that has not been researched can also be approximated by the “our stock” big data rating system developed by the market value situation.
(The picture comes from the market capitalization Fengyunwugu big data system) Therefore, here is another angle to enter the hand: focus on research and comparison of the four companies’ IDC business scale, business model, contract costs, etc., and will be carried out in the financial analysis sectionThe nature of the comparison, so that you have a clear understanding of the third-party IDC industry.
I. Introduction to IDC IDC (Internet Data Center) is an Internet data center. It is a computer room that centrally stores computing, storage, and network equipment. It provides customers with basic services such as server hosting and resource rental, as well as value-added services.
As the core infrastructure that supports the efficient and stable operation of the information technology industry, the iteration of technology, the growth of traffic and data continue to place higher requirements on the computing, storage, and transmission capabilities of IDC.
According to statistics from the IDC circle, the global IDC business market size in 2018 was nearly 51.5 billion US dollars, an increase of 10 in ten years.
In 2018, the total size of China’s IDC business market reached 122.8 billion U.S. dollars, with an annual growth rate of 29.
8%, well above the global level.
(Source: IDC circle) Investment, research on the development history of IDC, we need to focus on the following three time periods: 1. In 2010, the IDC license review gate algorithm was relaxed. Many companies can enter the IDC business field and quickly expand the market, so the growth has reachedA peak (Jin Qilin analyst); 2. In 2014, the release of 4G business operation permission and expansion of mobile Internet traffic entrances led to more application requirements; 3. In 2016, short video technology was widely used.The existing traffic volume is maintained, the application market maintains a balanced layout, and the scale of the IDC business market is relatively relatively fast.
At present, the reduction of 5G technology is about to be commercialized on a large scale and combined with the continuous upgrade of the application layer, the traffic growth brought by it will benefit the IDC industry; gradually, the rapid development of the domestic cloud computing market continues to drive the demand of the IDC industry.
(Source: CISCO) (1) Cloud computing vendors, Internet companies are the main demanders According to statistics from China Data Center Industry Development Alliance, cloud computing vendors, Internet companies, financial institutions and government agencies are the main demanders in the IDC market.
(Source: China Digital Alliance, China Merchants Bank Research Institute) The biggest demand for IDC is the major cloud computing vendors, accounting for 37%. Players in this field are basically giants, mainly including Ali, Tencent, China Telecom, Amazon, etc.
For users, cloud services are software and hardware resources that can be called at any time according to demand, but for cloud computing vendors, IDC infrastructure is their production materials.
It is a category of Internet companies, accounting for 25%. Software such as WeChat can support hundreds of millions of people at the same time every day. It would not be possible to rely on strong server support.
But not all Internet companies are IDC demanders.
With the development of cloud computing, small Internet companies increasingly do not need to have their own IDC data centers. It is a more cost-effective option to directly purchase public cloud services. Therefore, large Internet companies will gradually become the mainstream of this customer base.
Financial information systems are the core infrastructure of the contemporary financial industry, so financial institutions are also important customers in the IDC industry, currently accounting for about 12%; government customers ‘demand for IDC mainly provides services such as data exchange, backup, and storage for government departments.Its demand is largely policy-oriented and currently accounts for 17%.
The above is the current stock market structure. In the future incremental market, due to the continued rapid growth of the scale of the cloud market, the average annual growth rate in 7 years is as high as 52.
34%, cloud computing vendors and large-scale Internet will be the main force driving demand.
(II) The basic telecommunications operators are traditional giants. The competitiveness of third-party IDC vendors is clearly divided according to the service objects. The entire market can be divided into external services and self-built and self-use. The data center services for external services are mainly provided by the basic telecommunications operators.And third-party data center service providers.
(Source: ICT Institute) The three major telecom operators are strong in network resources, government, and funds. They have been the main force in data center construction, but their proportion has declined in recent years. In 2018, the three major operators of China Telecom, China Unicom, and China Mobile had a market share of 51.
The power of third-party IDC vendors is gradually rising, and they are more flexible and professional, and can provide customized services. Compared with basic operators, they can quickly adapt to emerging technologies and customer demand changes.
The main third-party operators include IWC, Century Internet, Baoxin Software, Dr. Peng, Halo New Network, and Dataport, accounting for about 14% in total.
Other categories have a market share of 34.
1%, including self-built and small and medium-sized third-party IDC companies.
In November 2019, only six of the six new IDC projects approved by Shanghai were operated by telecommunications, and the other five participated in the construction of third-party IDC enterprises.
(3) IDC construction with higher PUE is restricted by first-tier cities. IDC belongs to the heavy asset industry. The business model of this industry is actually very simple, that is, the construction of the machine room in the early stage, and the replacement rent according to the volume of the customer, the number of cabinets and other resources.
The cost of IDC manufacturers is mainly composed of two parts: fixed asset depreciation (CAPEX) and operating expenses (OPEX).
Expenditure on fixed assets includes up-front expenditures such as land, construction, and equipment, while operating expenses are mainly electricity costs.
Taking data port cost analysis as an example, 52% of the cost comes from electricity expenses (OPEX), while the rent and equipment depreciation account for 39% (CAPEX). Others include labor costs.
Of course, not all manufacturers have a large amount of rent expenses. This will inevitably lead to self-built or leased factories.
Because first-tier cities have a large number of large-scale network backbone repeaters with full network coverage, and most Internet companies and financial institutions’ headquarters (mainly IDC users) are located in first-tier cities, the closer the data center is to users, the faster the data processing and viewing speed, Beijing, Shanghai, Guangzhou and Shenzhen have the greatest demand for IDC.
However, data centers need to use a lot of land and power resources. Beijing, Shanghai, and Shenzhen have issued policies to restrict IDC construction, replacing the latest policy documents.
According to the report of the China Academy of Information and Communication Technology, the demand for IDC cabinets in Beijing in 2018 was 300,000, while only 18 cabinets were available.
60,000, Shanghai, Guangzhou-Shenzhen gap between supply and demand is also 40,000-50,000, showing that IDC resources in first-tier cities are very valuable.
Next, look at these issues. Data centers are high-productivity industries, which are directly related to operating costs and cause IDC companies to be restricted by policies.
So how much power does it consume?
In 2018, the national data center consumed 1,608 electricity.
8.9 billion kWh, accounting for 2% of China’s total electricity consumption.
35% (excluding Hong Kong, Macao and Taiwan), which exceeds 1,567 kilowatt-hours of electricity in Shanghai.
The PUE in the table above is a ratio, the closer it is to 1 the better the energy efficiency level.
In January 2019, the three ministries and commissions, including the Ministry of Industry and Information Technology, issued the “Guidelines on Strengthening the Construction of Green Data Centers by Three Departments.”
4 or less.
According to industry information network data, the average PUE of domestic IDC suppliers in 2018 exceeded 2.
Compared with newly constructed data centers, the early data centers had higher levels of double rooms.
Second, company introduction In addition to the three major operators, the IDC industry has a low concentration, and cities account for the total in the above statistics.
1% of GDS and 4% of Vnet are listed on US stocks.
The A-share market generally has the following ones: Halo New Network, Baoxin Software, Dr. Peng and Dataport, which will be introduced one by one later.
(1) Halo New Network Halo New Network was established in 1999 and listed on the Shenzhen Stock Exchange in 2014. It is a professional data center and cloud computing service provider in China. The actual controller is Geng Diangen.
(Source: 北京夜网 Company’s official website) The expansion of Halo’s new network business is closely related to Amazon.
In December 2013, Amazon announced that it would launch a Chinese cloud computing platform, and Halo New Network became the Internet data center business basic resource provider for Amazon AWS (Amazon Web Services) ‘s cloud computing business in China.
Since then, the company has invested heavily in building a cloud computing base. Currently, it has a number of self-built data centers in Beijing, Shanghai and surrounding areas, including Jiuxianqiao and Kexin Shengcai.
1. Revenue constitutes Halo New Network’s main business is IDC and its value-added services and cloud computing business.
The cloud computing business is mainly to provide domestic customers with cloud services based on AWS technology, including IaaS, PaaS, SaaS and related technical services.
淡水桑拿网IDC and value-added services are server hosting, rental and operation and maintenance services.
In addition, the company also provides IDC operation management services, which refers to exporting operation management services for other data centers.
The company’s revenue has been in a period of rapid growth in recent years. From 2015 to 2018, the overall revenue has increased from 5.
9.2 billion to 60.
2.3 billion, with a combined strength of 116.
The growth driver is mainly to grow the cloud computing business, but the growth rate of the IDC business cannot be underestimated. From 2015 to 2018, the average annual compound growth of IDC and its value-added services was 63.
2. As early as the beginning of the relevant investment (2014), Halo New Networks took cloud computing and data services as the focus of its future development, and its listing fundraising project was changed from “broadband access service expansion project” to “acquisition of Shanghai Bright Moon Optical Co., Ltd.”” For the Shanghai Jiading Green Cloud Computing Base Project.
After that, the company’s investment and acquisitions almost all started around cloud computing and IDC businesses.
June 2015 to 1.
2.1 billion acquired 100% stake in DXN Zhiyuan, which is responsible for implementing the construction of Fangshan Green Cloud Computing Base.
In September 2015, it spent 2.9 billion US dollars to acquire 100% equity of Zhongjin Cloud Network and Wushuang Technology.
Among them, the 100% equity price of CICC Cloud Network is 24.
US $ 100 million. Its main business is data center expansion services and private cloud services. As of August 2015, it has 8,790 cabinets.
March 2016 to 1.
600 million shares acquired 100% equity of Yasun Xinwang, and used its house in Chaoyang District to expand the Jiuxianqiao data center.
February 2018 to 11.
4.8 billion shares acquired 85% of Kexin Shengcai, and 8,100 Yizhuang green internet data center planned cabinets owned by Kexin Shengcai.
In September 2019, Kunshan Company 42 was acquired for 90 million.
85% equity, capital increase after the transaction, the company will actually have 63% of its voting rights.
Kunshan is responsible for the implementation of the company’s Kunshan Meihongye Green Cloud Computing Base Project, which is planned for construction1.
40,000 2N standard cabinets.
Due to the continuous large-scale mergers and acquisitions, as of the third quarter of 2019, the company’s book goodwill has reached 24 billion, accounting for 19% of total assets.
6%, need to be alert to the risk of goodwill impairment.
3. The IDC business of major contract companies uses a retail model. The top five customers in 2018 accounted for about 20%, including AWS, Samsung, Meituan, Xiaomi, and China Mobile.
As of the end of 2018, the major sales contracts that Halo New Network has reached are as follows: multiple IDC and value-added service orders with Beijing Mobile have been arranged.
800 million, the previous budget amount was 6.
IDC with Beijing Unicom Expressway and its value-added service order list 4.
2.3 billion, the previous budget amount was 1.
Merged with Beijing Sankuai Technology Co., Ltd. IDC and its value-added service orders1.
900 million, the cumulative amount is 44.05 million; Beijing Sankuai Cloud Computing IDC and its value-added service orders1.
3.9 billion, the previous budget amount was 1.
The total amount of the data center outsourcing service contract of the subsidiary Zhongjin Yunwang with Huaxia Bank, Agricultural Bank of China and Xinhua PICC for ten years.
07 billion, yet not budgeted amount of 50.72 million, 55.97 million and 1.
4. Dividends and fund-raising can be seen. In order to develop cloud computing and data centers, the company bought the land to build its own data center or conduct mergers and acquisitions.
So where does the money come from?
Since the company’s listing, it has conducted two non-public offerings, including the acquisition of Zhongjin Yunwang in 2015, Wushuang Technology and the acquisition of Kexin Shengcai in 2018.
In addition to paying the transaction price by issuing shares, it also raised an additional 2.9 billion yuan and 5 matching funds.
800 million for paying cash consideration and building cloud computing base projects.
In terms of dividends, according to the “Our Big Data” system, the company has paid a total of 7 dividends in the 6 years of listing.
Gradually pay dividends 2.
1 billion, the accumulated equity raised 64.
800 million, the money currently raised from shareholders far exceeds dividends.
(2) Dataport Dataport is the youngest of several companies. It was established in 2009 and entered the A-share market in 2017.
The controlling shareholder is the State-owned Assets Supervision and Administration Commission of Jing’an District, Shanghai.
The company’s business model is to deeply restrict BAT. From 2013 to 2015, the revenue of Baidu, Alibaba and Tencent exceeded 90% of total revenue, which has declined in recent years.
Among them, especially the closer cooperation with Alibaba. Alibaba Cloud’s first data center was the 536 data center built by the data port in 2009.
The company’s data center business originated in Shanghai and Hangzhou, and later added data centers such as Zhangbei, Hebei, Fangshan, Beijing, Nantong, Jiangsu, Heyuan, Guangdong, and Wulanchabu, Inner Mongolia.
(Source: Alibaba) In addition, it is worth mentioning that the average PUE of the data port in 2018 has reached 1.
4. Reach the overall level.
Several other companies have not released this data.
1. Business composition Since its establishment, the company has mainly reorganized its IDC business. In 2018, it increased its revenue from IDC solution business.
The main source of IDC solution income is the contracted amount of the first phase construction project of the Changshan Cloud Data Center Project of Changshan Beiming.
The project content includes the equipment room building, power center design, construction, commissioning and delivery, and later operation and maintenance for 60 months.
From 2015 to 2018, the company’s sales revenue increased from 3.
35 billion to 9.
100 million, with a composite strength of 39.
2. The wholesale model adopted by the IDC business of major contract data ports, through long-term service with telecom operators in Alibaba, Tencent, and Baidu’s three major Internet companies, the top five customers accounted for 87 in 2018.
In March 2019, the company and the Alibaba Cloud Millennium “Business Cooperation Agreement”, the company will underwrite the total amount of not less than RMB 4 within the 6-year cooperation period.
3.5 billion Alibaba Cloud products / services.
In March 2019, a long-term memorandum of cooperation with Alibaba on projects such as ZH13, and cooperation in the construction of ZH13, GH13, JN13, NW13, HB41 data centers. If the electricity fee is paid by the company, the total service fee is about 82.
800 million, the contract period is 10 years.
In December 2019, Alibaba received a new demand letter of intent to cooperate in the construction of HB41, HB33, GH13, and JN13 data centers, with a total amount of about 24.
400 million, the contract period is 10 years.
The income and profits generated by the above projects will be recognized in 10 years of operation and service grading according to the project delivery time and progress.
3. Dividends and fundraising According to the “My Big Data” system, the company has been listed for 3 years and has been paid 3 times.
Gradually pay 0.
600 million, cumulative equity raised funds 4.
100 million, the company’s listing time is expected, and eventually the total amount of funds raised is currently restructured for IPO.
(3) Baoxin Software Baoxin Software is a listed software company controlled by Baosteel Co., Ltd., established in 1996, listed in Shanghai Steel Pipe in 2001, and headquartered in Shanghai Pilot Free Trade Zone.
Since its establishment, Baoxin Software has been providing information construction services to Baosteel Group, and has now become one of the leaders in the field of industrial information technology, mainly serving the steel, transportation, chemical, financial, water conservancy, nonferrous metals, pharmaceutical and other industries.
Beginning in 2013, the company began to vigorously promote the IDC business and build Baozhiyunyi?
In the fourth phase, using the powerful resources of Baosteel Group, it quickly established a foothold in the IDC market.
IDC service end customers include Ouye, BFC Bund Financial Center, Alibaba, Shanghai Pharmaceuticals, Chow Tai Fook, China National Chemical Corporation and others.
1. Business composition Baoxin Software’s main business includes software development and engineering services, service expansion and system integration.
Since the second half of 2013, the service has expanded more cloud computing operation services and IDC businesses, and has since become a major driver of service outsourcing growth.
From 2015 to 2018, Baoxin Software’s total revenue was 39.
400 million to 54.
700 million, with an average annual compound strength of 11.
58%; and service outsourcing from 7.
200 million to 16.
900 million, with a composite strength of 33%.
2. Relevant investment was raised through non-public offering in 20136.
500 million US dollars for the first phase of Baozhiyun IDC project; raised funds in 2015 through non-public offering11.
US $ 800 million for Baozhiyun IDC Phase III project; raised RMB 16 billion in 2017 through the public issuance of convertible bonds for Baozhiyun IDC Phase IV project; In January 2019, the company worked with WISCO Group and othersInvested in the establishment of WISCO Big Data Industrial Park. The company holds 20% of the shares and subscribed for 400 million yuan.
The planned site of the IDC central area is located near the Wuhan Iron and Steel Plant, with a total area of about 135 acres. In the first phase to the end of 2019, it is planned to invest 2,000 standard cabinets; in the second phase, 2020-2021, it is planned to invest 6,000Standard cabinets; the third phase is from 2021 to 2023, and 10,000 standard cabinets are planned to be invested.
3. Major contract In October 2013, Shanghai Telecom leased a remote data center agreement with Shanghai Telecom to lease Baozhiyun IDC Phase I project data center resources (3752 cabinets). The agreement ended on December 31, 2023, with a total amount of 25About 2.6 billion; In June 2014, the company contracted with Shanghai Mobile for a long-term customized service contract to build the second phase of the Baozhiyun IDC project (3800 cabinets).The total amount is 25?
2.6 billion; In October 2015, it integrated a customized service contract with Shanghai Telecom to build Baozhiyun IDC Phase 3 Building 1 (4000 cabinets). The contract is up to December 31, 2025, with a total amount of 25
2.6 billion; In August 2016, with Shanghai Telecom’s remote customized service contract, the construction of Baozhiyun IDC Phase 3 building 2 project, the contract until March 31, 2026, the total contract amount is 12?
1.3 billion US dollars; the construction of Baozhiyun IDC Phase 3 building 3 project, the contract is until July 31, 2026, the total amount of 14?
1.5 billion yuan.
In June 2017, a ten-year contract with CPIC was established to establish data center services according to standards and requirements. The building area is 40,000 square meters and is divided into 4 machine room modules. The contract period is 20 years and the total amount does not exceed 5.5 billion yuan.
In September 2019, the customized service contract with Shanghai Telecom’s remote Baozhiyun IDC Phase 4 and Buildings 2 and 3 was delivered by September 30, 2019, with a contract period of 10 years and a total amount not exceeding 31.
1.1 billion yuan.
4. Dividends and fundraising According to the “My Big Data” system, Baoxin Software has been listed for 26 years and has been paid a total of 15 times.
Gradually pay dividends13.
100 million yuan, more than 85.
1% of listed companies.
Accumulated equity funds 19.
500 million, slightly higher than the amount of dividends.
(4) Dr. Peng Dr. Peng was founded in 1985 and listed on the Shanghai Stock Exchange in 1994. Prior to 2007, his main business was special steel smelting.
In May 2007, it acquired Beijing Telecom Telecom Engineering Co., Ltd. and has since entered the field of telecommunications network value-added services.
In 2012, it became the largest private telecommunications value-added service listed company through the acquisition of a wholly-owned holding of Great Wall Broadband.
The company’s data center business is provided as a value-added telecommunications service. As early as 2007, Dr. Peng already had 3 national A-level data centers.
Pengbo Industrial holds Dr. Peng13.
11% equity is the controlling shareholder of the company, and the cumulative pledge ratio is currently 100%.
The actual controller of the company is Yang Xueping, who has been the chairman of the company since June 2002.
1. Revenue composition Dr. Peng’s business is mainly composed of value-added services such as Internet access, data center business, and private network building operations.
Total revenue for 2015-2018 was 79.
300 million pounds 68.
600 million, lack of growth.
Internet access business revenue has begun to transition since 2017, mainly due to the Great Wall Broadband results that had previously generated a lot of revenue.
The data center business is not Dr. Peng’s largest source of income. It can still maintain growth in recent years, with a compound intensity of 14% in 2015-2018.
2. Significant contracts In January 2014, signed a Strategic Cooperation Memorandum with KT Corporation (the largest telecommunications operator in South Korea) to conduct in-depth cooperation in IDC business.
In July 2014, it signed a strategic cooperation agreement with China Mobile and agreed to carry out strategic cooperation in data center, broadband business, and industry informatization, but the company did not disclose more details.
In 2015, he signed a cooperation agreement with Tencent, and Dr. Peng provided Tencent’s local network bandwidth, IP address, equipment port, and computer room environment.
3. The development of major acquisition companies in the past 10 years has centered on the communications business and broadband business, with regard to investment substitution of IDC.
In December 2011, the company took 10.
800 million successfully bid for 50% stake in Great Wall Broadband and 4.
800 million debts, at the end of 2012 to 7.
1.2 billion acquisition of the remaining 50% equity of Great Wall Broadband.
In April 2015, the company acquired 100% equity of Vertex in the United States for a price not exceeding 9 million U.S. dollars. The company is engaged in telecommunications operations and has a synergistic complement to the company’s international OTT converged communications business.
In 2016, it acquired a 100% stake in American Giggle Fiber for US $ 15 million, and is an operator engaged in Internet access and telephone video services.
In 2017, acquired 93% equity of PLD for 90 million U.S. dollars. The company was completed for the construction of the PLCN submarine cable project. The project began preparations at the end of 2015. It was initially expected to be completed in 2018, but it has not yet been completed and put into operation.600 million yuan.
(Source: the company’s official website) The acquisitions over the years have caused a lot of goodwill on the books, and the goodwill in the third quarter of 2019 was as high as 20.
89 billion, accounting for 9 of total assets.
4. Performance forecast It is worth noting that in the performance forecast for 2019, Dr. Peng stated that the net profit in 2019 will reach 5.1-5.8 billion yuan.
The initial loss is the impairment of fixed assets and the impairment of goodwill. It is initially determined that the provision for impairment of fixed assets is approximately 3.8 billion yuan, and the provision for impairment of goodwill is approximately 2 billion.
The big impairment this time is definitely a big bath. The net profit of Pengbo Industrial since its inception in 2002 has been 47.
700 million-this time lost 18 years of money.
Taking Great Wall Broadband, the subsidiary with the highest estimated impairment this time, as an example, the company plans to accrue a goodwill impairment of 14.
800 million, with impairment of fixed assets between 2 and 2.4 billion.
Its revenue and net profit are expected to continue to decline. In 2018, it reduced from profit substitution, but the company gradually upgraded in the past to accrue goodwill impairment of only 5 million, and fixed asset impairment losses were accrued for substitution.
5. Dividends and fundraising According to “Big Data of Our Shares”, the company has been listed for 26 years and has been paid 11 times.
900 million, cumulative equity financing 26.
In June 2017 and April 2018, a total of 2 billion funds were raised through public offerings of corporate bonds.
The above describes the pattern and characteristics of the IDC industry, as well as the four largest IDC business companies listed on A shares. The next four companies will be compared.
III. Data Center Scale and IDC Business Revenue (I) Data Center Scale Halo New Network: It uses its own land to build its own data center. It has Dongzhimen, Jiuxian Bridge, Taihe Bridge, Aura Cloud Valley, Fangshan, Yizhuang in and around BeijingData Center; owns Shanghai Jiading Computing Base in Shanghai.
At present, the number of operating cabinets exceeds 30,000, and the rack-up rate of completed cabinets is about 80%.
Projects being planned and constructed include cloud computing base projects such as Fangshan Phase II, Hebei Yanjiao Phase III, Yanjiao Phase IV, Shanghai Jiading Phase II, and Jiangsu Kunshan Park.
After all the above-mentioned projects are in production (in the next 3-5 years), the company will have a service capacity of about 100,000 cabinets.
Data port: As of the first half of 2019, the data port operates a total of 15 self-built data centers, covering Zhangbei, Hebei, Shanghai, Hangzhou and Shenzhen, with a total of 1 deployments.
500,000 cabinets, 10.
The projects under construction include HB33, JN13, HB41, GH12, ZH13, NW13 data center projects, Zhangbei data center 2A-3 and other projects.
Baoxin Software: The first, second, and third phases of Baozhiyun IDC have been completed, and the number of operating cabinets in 2018 reached 1.
750,000 units are located in Shanghai.
As of the first half of 2019, the fourth phase of Baozhiyun IDC is under construction, with expenditure accounting for 48% of the budget.
2%. After the completion of the Baozhiyun project, the total number of cabinets is planned to be 2.
After the completion of WISCO Big Data Center, 1 will be added.
Dr. Peng: Currently, there are more than 20 data centers in Beijing, Shanghai, Guangdong, Sichuan, Hubei and other places. The total number of cabinets is about 30,000, and the total installed capacity of the server exceeds 330,000.
From the current scale, Dr. Peng has the largest number of data centers and the widest geographical coverage.
In terms of future construction and expansion, Halo New Network will definitely expand to 100,000 cabinets in the future. Baoxin Software and Dataport also have a large number of data center projects under construction, while Dr. Peng is relatively small.
Because the power of the cabinets is different, let’s look at the IDC business scale of each company from the income.
(II) IDC business scale and growth rate Here I will explain some. Baoxin Software ‘s IDC business income data is embedded in the calculation method of the brokerage firm, because the IDC business and traditional service expansion are classified as service outsourcing business in the annual report disclosure.Direct disclosure.
Therefore, assuming that the company’s traditional service outsourcing market revenue growth rate is consistent with the industry growth rate, the remaining revenue is divided into IDC business revenue; in 2017 and before, Dr. Peng’s IDC business was calculated within the “Internet value-added services”, in 2018Individually listed Internet value-added services account for only 0.
3%, so considering that the IDC business accounts for a large proportion, we will treat Internet value-added service income until 2017 and before as IDC income; the data port revenue is mainly data center hosting service income and data center EPC general contract revenue.Since then, all its operating income has been used.
In 2018, Dr. Peng’s IDC business income was 13.
53 billion, followed by Halo New Network12.
700 million, Baoxin software trial revenue is 10.
6.4 billion, the smallest data port revenue, 9.
How about the growth rate of income?
IDC business growth is volatile, but overall is in a period of rapid growth, and no company has experienced negative growth in the past four years.
Among them, Baoxin Software’s IDC business growth rate is relatively stable, and each holds a growth rate of more than 60%; and Dr. Peng’s IDC business growth rate has slowed significantly between 2017 and 2018, less than 10%.
As mentioned above, the IDC market size in 2018 increased by nearly 30% over the previous year. Based on this standard, the growth rate of IDC business of the three companies except Dr. Peng exceeded the market growth rate.
Fourth, the comparison of financial conditions (a) the big data score of our stock According to the “big data of our stock” system, we can quickly obtain the above four companies’ financial report scores and market rankings in the past three years.
The halo newnet drama rose from 69 to 79.
At 1 point, the market ranking also rose from the last 1/3 to the top 1/3, indicating that the company’s financial situation has gradually improved; the situation of Dataport and Halo New Network is similar, and the score in 2018 is slightly lower than that of Halo New Network, which is 78.
3 points, higher than the industry average of 75 points; Baoxin Software is the highest rated by four companies, reaching 88 in 2018.
4 points, ranking 48th in the market, is already outstanding; Dr. Peng is the only company with a declining score, and the market ranking continues to move backwards at the same time. Due to the huge pre-loss of performance, this trend may continue in 2019.
(2) The income structure is applicable to the total income and income structure of the four companies in 2018. The revenue scales of Halo New Network, Baoxin Software and Dr. Peng are similar, and the size of the data port is much smaller than that of other companies.
From the perspective of revenue structure, except for the data port, the IDC business of several other companies is not the business with the highest proportion.
Halo Newnet ‘s IDC business is developed to serve its cloud computing. The main businesses of Baoxin Software and Dr. Peng are software development and Internet connection, respectively.
(3) Profitability 1. The gross profit margin of IDC business is high. Looking at the IDC business alone, Halo New Network has the highest gross profit margin, maintaining above 50%, and continuing to grow.
Both Baoxin Software and Dr. Peng expect the business gross margins to remain above 40%.
The gross profit margin of Dataport is lower, especially below 30% in 2018. This is due to the decline in its own IDC business gross profit margin, which was 37 in 2018.
24%, which can add 26 in the year.
The gross profit margin of the 4% IDC solution is only 12%, significantly lowering the overall level.
Why does the gross profit margin of IDC business in Dataport decrease?
The land and workshops of Halo New Network are owned by themselves (obtained through acquisition), and the initial expenses are large, but they are cheaper than renting a house. A large number of Baoxin Software’s workshops for building data centers are retrofits of their own old steel plants with the lowest cost.
(Source: Announcement of Halo New Network Company) (Source: Announcement of Baoxin Software Company) The data port is leased land for self-construction or land provided by the customer Ali to build a factory, and the cost is relatively high.
(Source: Dataport Company Announcement) As a whole, Dataport is a wholesale-type vendor with a high concentration of customers. The main customers are large cloud computing vendors such as Alibaba. The customers have strong bargaining power.
Zhangbei Data Center, a data port located in Hebei, directly interrupted its contract with Alibaba (known as the basic telecommunications operator) with a gross profit margin of only 21.
6% In addition to the data port, the other three companies have other businesses with a combined proportion. Let’s take a look at the company’s comprehensive gross margin comparison.
What is significantly different from the IDC business is that the overall gross profit margin of each company shows a downward or downward trend.
Halo New Network has the lowest comprehensive gross profit margin, which was around 20% in the last three reporting periods. This is because its cloud computing business, which accounts for 73%, has only a gross profit margin of 10% in recent years?11%.
For Baoxin Software, the gross profit margin of software development business, which accounts for 64%, has been decreasing year by year, and it was 20 in 2018.
7%, so the overall gross profit margin is also lower than the IDC business, at 26%?
Dr. Peng’s overall gross profit margin is the highest due to the high gross profit margin of his Internet access business, which is basically above 50%.
But does it have the highest gross profit?
2. The net interest rate and the rate of return on assets are the data ports dominated by IDC business. The net interest rate in 2015-2017 was around 20%. Since 2018, the improvement rate has still surpassed the other three companies.
Halo New Network, Dataport and Baoxin Software’s net margins have been concentrated from long-term improvement.
For Dr. Peng, which has the highest comprehensive gross profit margin, the net profit margin has declined precipitously since 2018.
Next, from the perspective of ROE, the profitability of each company’s shareholders’ equity is examined.
We found that the data port ROE level that focuses on IDC business is also ahead of the other three companies, but has declined in recent years, from more than 20% in 2015 to only 14 in 2018.
ROE of Xinhuanet and Baoxin Software were 8 in 2018.
9% and 10.
12%, which is not high, and has been increasing continuously since 2016.
Dr. Peng’s ROE has been continuously replaced in the past few years and changed to 5 in 2018.
52%, the reason is the rapid replacement of net profit.
(IV) Cash flow analysis Subsequently, we observed the profit quality and expansion of several companies by analyzing the company’s cash flow.
The average of nearly five reports, the net cash flow reorganization of the four companies’ operating activities is positive, indicating that the company can earn real money through operating activities.
Judging from the net present ratio of the company’s profit quality, the minimum value of Halo Xinnet was only greater than 1 in 2016; the net present ratio of the other three companies exceeded 1 for a long time, indicating that the net profit can indeed achieve the company’s profit level.
Dr. Peng’s net present ratio is above 4.
5, is due to its broadband business model must be divided into annual advance budget.
Let’s look at the net cash flow of generalized operating activities.
Halo New Network, Dataport and Dr. Peng’s net operating cash flow in the past five reporting periods were mostly negative.
From 2015 to the third quarter of 2019, the Halo New Network has a total net turnover of 30.
7.7 billion, data port net reduction of 15.
200 million, Dr. Peng has a net reduction of 32.
This shows that even if several companies have the ability to continue to profit from their operating activities, they have expanded spending every year on investment, and cash flow is still very tight, and they can only maintain business expansion by continuously raising funds.
Baoxin Software is the only company with a long-term net net inflow of cash from large enterprises. According to the above, it can also carry out investment construction, but its expansion rate is still relatively conservative compared to its financial status.
Poor generalized net cash flow from operating activities means that the company must expand by borrowing. We further analyze the company’s asset structure and debt repayment ability to see whether such expansion will have debt risk.
(V) Asset structure and solvency of the four companies, Dr. Peng has the highest asset-liability ratio, steadily staying at more than 68%.
Dataport’s asset-liability ratio is also relatively high, which fell to 47% in 2017, due to the absence of short-term debt and long-term payables at the end of the year.
The asset-liability ratio guidelines for Baoxin Software and Halo Xinwang are at predetermined levels.
Baoxin Software has accounted for 12 in 2017.
7 trillion bonds, a short jump, fell to 28 the following year.
However, Halo Xinwang and Dr. Peng have goodwill on the asset side. Since the project is not an asset with real value, the actual asset-liability ratio is actually higher.
After removing the influence of goodwill, Dr. Peng’s asset-liability ratio reached about 76%, and Halo Xinwang was not the company with the lowest asset-liability ratio.
Next, look at the current ratio. As the ratio of current assets to current debt, this value can reflect the company’s short-term solvency.
In terms of numerical comparisons, Dr. Peng has the lowest current ratio, and has not exceeded 0 since 2015.
5. It has not improved significantly, and its debt service ability is not good.
This is mainly because Dr. Peng’s current income has a large amount of advance receipts. In 2016-2018, the proportion of advance receipts to current liabilities was 52.
8% and 66.
Dataport’s current ratio is basically zero.
Between 7 and 1 times, there is still a significant extension in the third quarter of 2019, mainly due to excessive short-term increases.
The halo new network has a current ratio of 1.
2 to 2.
Fluctuations between 7 times, Baoxin Software’s short-term debt repayment ability is the strongest, and can basically remain above 2 times.
From the perspective of asset structure and debt repayment ability, Baoxin Software has the lowest possibility of debt risk, while Dr. Peng and Dataport’s debt pressure is relatively overcome.
Summary Nearly half of the current IDC market share is still in the hands of the three major operators. Although the proportion of third-party IDC service providers is somewhat dispersed, competition has intensified.
Through the analysis of various companies, it is found that the entire industry is indeed in a period of rapid development.
The specific performance is the proportion of IDC business that has never accounted for total revenue. The companies with rapid growth and the highest gross profit margins have the combined strength of IDC business in recent years.Over 30%.
Halo Newnet has caught up with Amazon Express, a company with revenue growth and growth in the past few years. The IDC business mainly covers the Beijing area and is expected to achieve the service capacity of 100,000 cabinets in the next 3-5 years.
Its development model is to purchase a large number of subsidiaries for plant construction. The initial investment cost is high. As a retail data center, the rent for a single cabinet is higher, but the contract period costs and revenue are uncertain.
In addition, the book has an impediment to goodwill, and believes that the company’s net interest rate is not high, and impairment will have a great impact on performance.
Dataport and Alibaba have continued to deepen their cooperation. If the current demand letter and cooperation memorandum can successfully reach the contract, it will bring more than 10 billion service fee income.
Although the gross profit margin of the IDC business is relatively high, the company has sufficient business and the overall profitability is the best among the four companies.
The data centers of Baoxin Software are mostly located in Shanghai. They are mainly customized after long-term contracts with customers. The overall shelf rate is high and the revenue is relatively easy to predict.
The cash flow situation is the best among the four companies. The main business income can cover the investment and construction expenditure, and there is little pressure to repay debt.
Dr. Peng’s IDC business has started initially, but it has been the slowest in recent years.
The reason is that in recent years, the company’s development focus has been on overseas business, and the PLCN submarine cable project jointly built with Google and Facebook has gradually expanded by 25.
5 billion, currently not completed and reached production.
And because the performance of its subsidiary Great Wall Broadband has deteriorated severely, it is the only company whose total revenue is sustained.
The huge investment supplement business contracted, Dr. Peng’s profitability expanded, the asset-liability ratio was the highest, the debt repayment ability was weak, the controlling shareholder’s pledge rate was as high as 100%, and the company’s overall uncertainty and risks were overcome.