Maintain the century interconnection stock (nasdaq:vnet) and the market flat rating

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

First quarter results: The first fiscal quarter revenue of 586 million yuan, and we expect the renminbi 587 million yuan basically consistent. Managed services revenue of 404 million yuan, higher than our expected 398 million yuan. Network Management Services revenue of 182 million yuan, lower than our expected 188 million yuan. Diluted earnings per share of RMB 0.50 yuan, below our expected RMB 0.55 yuan.

Second-quarter earnings forecast: Century interconnection forecast, the second quarter revenue will reach 650 million yuan, higher than our expected 638 million yuan. EBITDA (profit before tax depreciation amortization) will reach RMB 135 million, above our expected 128 million yuan.

Cloud services remain the focus: in the first quarter, revenues from Microsoft cloud services exceeded $3 million trillion. Century interconnection estimates that revenue from cloud services will exceed 10% per cent this year.

Valuation: We continue to maintain the century interconnection stock "with the market flat" rating.