(Boursier.com) — 2CRSi climbs another 16% to 4.60 euros this Monday, which brings the increase in value since the start of the year to more than 160%. The group has just signed a contract with an American data center operator. A leading company in data centers operating exclusively with renewable energy sources has chosen 2CRSi servers to equip its next 4 computing centers. The contractual commitment represents $210 million for the next 18 months…
The construction of these 4 new “data centers” represents a key step for the future: This operator is committed to an approach of exclusive use of clean energy. It is essential for him to have the most efficient but also the most frugal computer servers, precisely one of the strengths of the products developed and manufactured by 2CRSi.
In addition to having carbon-free energy, these sites will use the thermal energy released by the servers as a heat source for agriculture… With more than 10 years of experience in the design and manufacturing of servers specifically dedicated to liquid cooling , 2CRSi now makes it possible to have data centers with “positive” carbon footprints.
The development of this client’s data centers, supported by the fiscal measures of the American ‘IRA’ (inflation reduction act), is not limited to these 4 sites currently under construction. With a roadmap until 2030, more than 30 sites, for a total of more than 1,700MW which will be installed in more than 20 American states.
This contract also concerns a 2nd firm commitment to order an additional $400 million over the next 4 years, for a contractual total of $610 million..
Action plan
The group also announced last week a 3-year plan aimed at balancing sales of servers for AI, sales of complete solutions for Datacenters and associated services. This plan focuses on the US market, accounting for the majority of 2CRSi sales globally. For nearly 20 years, 2CRSi has demonstrated its expertise in the design and manufacturing of high-performance, energy-efficient computer servers and its mastery of air or liquid cooling systems… The rise of high-performance computing (HPC) and its most recognized branch, artificial intelligence (AI), pushes manufacturers to develop ever more powerful, compact and energy-intensive components. In the quest for the most eco-efficient infrastructure solutions, the contract signed on January 30 mentioned above “is proof that 2CRSi has all the necessary qualities”.
New organization
To further raise its level of expertise, it is also imperative to rethink the group’s organizational structure: Under the leadership of management, the group will now be organized around 3 clearly identified brands: 2CRSi and its ‘R&D’ team maintains its ability to design and manufacture tailor-made servers for its historical customers with clearly calibrated requirements; Tranquil IT develops its rugged servers and focuses its positioning on Edge Computing; and Adimes remains the agnostic integrator of the solutions of all strategic partners but also integrates the production and logistics teams serving the entire group. It provides tests, after-sales service as well as all IT services for local customers…
This strategy is clearly part of an objective of increased productivity and a guarantee of cost control for each entity. Furthermore, other negotiations are underway around machines dedicated to AI, mainly from 2CRSi Corp which today represents the majority of the turnover generated by 2CRSi. The contract signed and announced yesterday with a data center operator shows the success of the innovations created by 2CRSi. Last year: 2CRSi already presented North America as the main lever of its growth.
Traced path
2CRSi is experiencing and will experience very vigorous commercial and industrial development in the months and years to come. For the current financial year, which will last 16 months and end on June 30, 2024, 2CRSi Corporation will have a turnover greater than $100M. The low margin of sales of servers specialized in AI is compensated by a large volume. The objective of a return to profits is planned for this year with an EBITDA forecast of over $3M, for the American subsidiary alone.
For the following years, the sale of solutions for data centers associated with a growing share of services will significantly increase the group’s results. For 2CRSi Corp, this will result in an EBITDA greater than 12% by 2026, for a turnover of close to $300 million, around 60% of which is already covered by the contract with the American data center operator.
Among the latest analyst opinions, Portzamparc recalls the “historical and strategic” positioning of the group which is becoming increasingly relevant in the context of “energy efficiency”… Enough to adjust its target price of 7 .60 to 9.30 euros by entering the value in its “Convictions” list alongside Eramet, Esker, Guerbet, Herige, IPSOS, Medincell, Precia, Spie and Vusiongroup. The valuation even rises to 11.3 euros based on a multiple of 9XEV/Ebitda at 2025-26.