Earnings First Take: 1Q22 results beat; FY22 guidance revised up
- Revenue grew by 43.1% y-o-y to Rmb920.6m in 1Q22, driven by 44.5% y-o-y growth in utilised IT capacity
- Adjusted EBITDA increased by 60.7% y-o-y to Rmb494.5m, 10% higher than market expectations
- FY22 guidance for revenue and adjusted EBITDA are revised up
- Expect positive share price reaction
What’s New
– Chindata (CD US) announced its 1Q22 results on 26 May 2022 evening.
– Revenue increased by 43.1% y-o-y to Rmb920.6m, driven by 44.5% increase in utilised IT capacity to 344MW.
– Capacity in service expanded by 47.8% y-o-y to 498MW, with utilisation rate down by 1.5ppts to 69.1% y-o-y or flat q-o-q.
– Adjusted EBITDA increased by 60.7% y-o-y to Rmb494.5m, c.10% higher than market expectations, due to strong capacity ramp-up. Adjusted EBITDA margin expanded 5.9ppts y-o-y or 2ppts q-o-q to 53.7%, thanks to efficient cost control.
– Net income increased by 62.5% y-o-y to Rmb94.6m, thanks to strong capacity expansion and margin improvement.
– Management has revised up revenue and adjusted EBITDA guidance midpoint for FY22 by 1.5% and 2.9% respectively.
Our View:
– We expect positive share reaction as 1Q22 results is higher than market expectations and FY22 guidance is revised up.
– Chindata is less impacted by city lockdowns in China as its domestic data centres are located in the surrounding areas of tier 1 cities.
– We currently rate BUY on the counter; TP of US$10.8.
– Analyst conference call will be held at 8pm on 26 May 2022.
– We will host a post results investor group call at 2pm on 30 May 2022.