The Zhitong Finance App learned that Daimo released a research report saying that it gave XinyiNet Group (01686) an “increase in holdings” rating. It is believed that the stock price will rise within 15 days. The probability of this happening is over 80%, and the target price is HK$8.3.
The bank expects the company's stock price to rise because it successfully appealed to the Hong Kong Science and Technology Parks Corporation, which alleges that several data center operators in Tseung Kwan O Industrial Village violated the leasing restriction policy, obtained land at a price far below market price, and then subleased it. The bank believes that this incident will encourage full compliance, fair competition and healthy pricing in the IDC market in Hong Kong, China, and will prove beneficial to the current IDC service provider Xinyi.com. If non-compliant small businesses terminate their business or are forced to pay a fair market price for land leases, they will be more optimistic about the company.