Maintain the century interconnection share rating, while maintaining a 35 dollar target share price unchanged

J.P. Morgan released a study today to maintain the "overweight" rating of the Century interconnected stock (nasdaq:vnet) while maintaining a 35 dollar target share price unchanged.

The following is a summary of the contents of the report:

The share price of the century has fallen by 17% compared to the March highs, which we believe is mainly a shift in the distribution of market funds, and the business base of the century interconnection has not changed. Instead, we see some positive factors that will drive stock price growth. To this end, we continue to maintain the century interconnection stock "overweight" rating.

China Development and Reform Commission strict examination of the Internet Data Center project: We believe that the national Development and Reform Commission to suspend the approval of Beijing's Internet Data Center (hereinafter referred to as "IDC") new project is to balance the supply and demand relationship, no impact on the century interconnection. Century interconnection set up a new cabinet is entirely the decision of the company level, do not need to be approved by the National Development and Reform Commission. We believe that the national Development and Reform Commission this moratorium is to clean up some of the main purpose of the project IDC projects, rather than really limit the construction of the data center. The decision will help clean up some of the Beijing market's redundant data centers, which offer pricing advantages and a better competitive environment for the century interconnection.

The Ministry of Industry is brewing to open broadband access to the public: it is reported that the Ministry of Industry and Industry is brewing to open broadband access to the public, which has raised the opportunity for the interconnection of the century to obtain relevant licences. Century interconnection has filed a telecommunications licence (mainly broadband licence) with the Dongguan government's joint venture company. For the century interconnection, access to the licence is significant, as the century interconnection will provide peer-to-peer services with higher margins. This time, the Ministry of Industry brewing to open broadband access to the public will enhance the century interconnection access to the relevant licensing opportunities.

Office 365 landing China: Microsoft announced in Tuesday that the century-connected Office 365 cloud service officially landed in China, and that the familiar Office suite, instant messaging, and collaboration components would be the first to be made available to Chinese business users and government agencies as a cloud service. China's service prices are in line with the global, with a 20% discount before May 31 this year. Our data shows that the initial feedback from the market was good and several large customers have subscribed to the service.

First-quarter results and second-quarter results: We believe that the first and second-quarter results of the century-interconnected 2014 fiscal year are expected to coincide with our expectations and will not surprise the market.

Valuation: We continue to maintain the "overweight" rating of the century interconnected stock, while maintaining a 35 dollar target share price unchanged.