Pacific crown to maintain the century interconnection run win the market rating

Beijing time August 21 Evening News, the Pacific Crown Securities published a study today, to maintain the century interconnection (nasdaq:vnet) shares of the "outperform" rating, and the target share price raised to 18 U.S. dollars.

The following is the full report:

We hold a positive view on the long-term development of the interconnection of the century. Investment will contribute to short-term growth and sustain growth of about 30% over a multi-year period.

-Recent growth will continue to accelerate with target prices up to 18 dollars

We expect growth to continue to accelerate over the next 3 quarters, with about 30% growth to be maintained over the next few years. According to the growth rate and valuation of the Chinese peers of the century interconnection, we consider the higher valuation multiples to be reasonable. We have raised the value of the enterprise of the century to 10 times times the profit before the tax depreciation amortization (EBITDA) to 15 times times. So raise the target share price to 18 dollars.

-Second quarter revenue and interest tax depreciation amortization before profit (EBITDA) in line with expectations

Profits for the second quarter, earnings per share and tax depreciation amortization were 76.8 million USD, USD 0.05 and 14.2 million USD respectively, while analysts were expected to be 76.2 million dollars, 0.09 dollars and 14.2 million dollars respectively. Host and network management Services revenue is 47.7 million U.S. dollars and 29 million U.S. dollars, and our expectations are 46.9 million U.S. dollars and 29.5 million U.S. dollars respectively.

-Key indicators are also in line with expectations

Independent and partner cabinets are 7404 and 4,822 respectively, we are expected to be 7404 and 4,634 respectively. The utilization rate and the charging cabinet are 70.2% and 8,583 respectively, and our expectation is 70% and 8,427 respectively. The MRR of each cabinet is 1811 dollars, and our forecast is 1808 dollars.

-Performance forecast intermediate points meet analyst average expectations

Century interconnection forecast that the third quarter revenue of 83 million to 85 million U.S. dollars, interest tax depreciation amortization before the profit of 15 million to 17 million U.S. dollars. Analysts expect an average of 84.6 million dollars and 16.4 million dollars respectively. (Lili)