Morgan Stanley published a research report. It is believed that the stock price of Xinyi.com Group (1686.HK) will rise within 15 days. The probability of this happening is expected to be over 80%. The rating is “increase”, and the target price is HK$8.3.
According to the report, it is expected that Xinyi.com's stock price will rise because it successfully appealed to the Hong Kong Science and Technology Parks Corporation. The latter alleges that several data center operators in Tseung Kwan O Industrial Village violated the leasing restriction policy, obtained land at a price far lower than the market price, and then subleased it. It believes that this incident will encourage full compliance, fair competition and healthy pricing in the Hong Kong IDC service provider, and will prove beneficial to the current IDC service provider Xinyi.com.
Daimo pointed out that if non-compliant small enterprises stop their business or are forced to pay fair market prices for land leases, they will be more optimistic about Xinyi.com.