BofA Securities first gave Xinyi net (01686.HK) "buy" rating, with a target price of 9 yuan. According to the bank, Xinyi has a solid market leading position in the Hong Kong Internet data center market, and the soon-to-be-completed data center meets the steadily rising demand, and its profit is expected to grow at a compound annual growth rate of 14.7% between 2020 and 2024. Because there are few data center service providers with similar attributes in Hong Kong, Xinyi has pricing power.

According to BofA Securities, Xinyi will have three new data centers in use in the next 1-2 years, and the total floor area will double from the existing 1.4 million sq ft to 2.9 million sq ft, which will greatly increase the revenue of Xinyi's data services.