$Chindata (CD.US)$Listed in 2020, revenue grew rapidly in th...

The income statement shows that gross margin has basically been around 41% for the past 3 years, and the increase in operating expenses has also been relatively restrained.

However, interest expenses continued to rise, reaching 300 million in 2022, accounting for 25% of operating profit, and a heavy burden.

Since listing, the balance ratio has increased from 40.1% to 52.8%, and accounts receivable have grown rapidly. The increase in 2021 was 320 million, which is comparable to the net profit of 316 million in that year, and the increase of 1.39 billion yuan in 2022, far exceeding the net profit of 650 million in that year, and the profit content is very low.

Fixed assets have increased rapidly in the past 3 years, from 5 billion before listing to 14.6 billion. Future depreciation is a big problem.

Long-term loans reached 7.2 billion dollars, which is 2/3 of net assets of 10.9 billion yuan, a typical asset-heavy industry.

The net cash flow operating amount for the past 3 years is far lower than the net investment amount. Currently, the company is still in the investment period.

The current price-earnings ratio is 27, which seems to be very low compared to the profit growth rate, but this is no depreciation data. Once depreciation begins, it will reach at least 1.5 billion dollars a year (14.6 billion divided by 10 years of depreciation), which will be a heavy burden on net profit. Plus, the increase in accounts receivable is higher than cumulative net profit, so wait and see.