MCC Meili Cloud Computing Industry Investment Co. Ltd. – A Case of Missed Momentum
MCC Meili, listed on the Shenzhen Stock Exchange since 1998, trades in the “Materials” sector under the paper‑and‑forest‑products umbrella. Its business model is two‑fold: production and marketing of a broad range of paper goods, and the provision of cloud‑platform infrastructure and ancillary services. The company’s last closing price, 15.6 CNY on 2026‑02‑11, sits comfortably below the 52‑week low of 10.14 CNY and well below the 52‑week high of 17.47 CNY, indicating a sustained downtrend. With a market capitalisation of approximately 10.86 billion CNY and a negative P/E ratio of –13.39, the stock is currently undervalued, at least on nominal metrics.
Cloud‑computing demand – a macro‑trend that MCC Meili cannot ignore
The latest Omdia report (2025 Q3) records a 24 % year‑over‑year growth in China’s cloud‑infrastructure services market, reaching 134 billion USD. AI has become the chief engine behind this expansion, shifting cloud resources from model training to production‑grade workloads. Head‑liners such as Alibaba Cloud, Huawei Cloud and Tencent Cloud now dominate the market with 36 %, 16 % and 9 % shares respectively. The narrative is clear: the next wave of AI will only accelerate the need for scalable, high‑performance cloud infrastructure.
In this environment, MCC Meili’s cloud‑platform business should be a natural catalyst. Yet, the company’s share price has shown little reaction to the sector’s bullish trajectory. Even though the stock is included in the paper‑and‑forest‑products sector, investors have largely treated it as a traditional material stock rather than a technology‑enabled growth play.
Financing activity paints a lukewarm picture
On 2026‑02‑12, the Shenzhen market recorded 2.63 trillion CNY of margin‑trading balances. MCC Meili does not appear among the top 30 stocks with the largest margin‑balance increases or decreases, indicating that the brokerage‑broker ecosystem is largely indifferent to its prospects. Furthermore, the 43 stocks that attracted net margin purchases exceeding 100 million CNY were all from technology‑centric sectors such as electronics, communication and computing. MCC Meili is conspicuously absent, underscoring a disconnect between the company’s cloud‑focused diversification and market perception.
The risk of dual‑focus dilution
MCC Meili’s dual focus on paper production and cloud infrastructure presents a strategic conundrum. The paper business is subject to the same cyclical pressures that have long plagued the material sector: raw‑material cost volatility, overcapacity in China, and increasing environmental regulation. Cloud infrastructure, on the other hand, requires substantial capital expenditure, continuous R&D, and a competitive edge that is hard to achieve without significant scale.
The company’s 2024‑2025 financials show a modest revenue from paper sales but a relatively small contribution from cloud services. This imbalance is a warning sign: while the company is attempting to capitalize on AI‑driven cloud demand, its core revenue stream remains vulnerable to traditional material shocks. Investors who see the cloud division as a growth engine may be overestimating its current impact on earnings.
What should investors look for?
- Revenue mix transparency – The proportion of revenue from cloud services versus paper products is critical. A shift toward cloud should be reflected in both revenue and gross‑margin improvements.
- Capital allocation – Cloud infrastructure is capital intensive. MCC Meili must demonstrate disciplined spending, preferably with a clear roadmap for expanding data‑center capacity or developing proprietary cloud solutions.
- Competitive positioning – In a market dominated by Alibaba Cloud, Huawei Cloud and Tencent Cloud, MCC Meili’s unique value proposition must be articulated. Is it offering niche vertical cloud services? Is it targeting underserved industrial clients?
- Margin dynamics – Cloud services generally yield higher margins than paper production. A steady increase in cloud‑service margins would signal successful scaling.
Conclusion
MCC Meili sits at the intersection of two very different markets. Its attempt to ride the AI‑cloud wave is hampered by a lack of clear differentiation and by the continued volatility of the paper sector. While the macro‑environment for cloud computing is undeniably bullish, the company’s current performance and market perception suggest that it has yet to unlock the growth potential of its cloud division. For investors, the key will be whether MCC Meili can transform its dual‑business model into a coherent, high‑margin growth engine, or whether it will remain a niche player dragged down by the cyclical nature of paper production.
