Summary of investment
Xinyi is the leading information provider in Hong Kong, the neutral data center contractor. Niigata Base Corporation (16.HK) holds 74.04% of the shares. Revenue rose 19% to HK $1.63 billion, while the company's share of profit rose 11% to HK $870 million. We offer HK $6.46 to the target label and upgrade to "overweight". (updated as of September 17)
The construction is good, and the service of the data center is developing well.
The collection announces the year-round festival. During the period, revenue rose 19% to HK $1.63 billion, while the company's share of profit rose 11% to HK $870 million. The increase in income was mainly due to the increase in the number of new customers, mainly due to the increase in the income of client merchants and existing customers. Sales costs rose 23% to HK $70 million, mainly due to an increase in depreciation expenses and an increase in operating costs for new customers, resulting in a decrease in aggregate gross profit margin from 58.5% to 57.2%. In addition, sales and administrative costs accounted for 1.6% and 6% of revenue respectively, down 0.1% and up 1.5%, respectively, compared with the same period last year.
According to the good development of the center's services, new customers introduced by MEGA Plus this year include another major global terminal service provider and a regional optional video service provider; MEGA-i has added an international e-commerce provider that leads the market; and MEGA Two has also attracted a regional mutual exchange enterprise cluster.
The new project in Tsuen Wan has entered the construction phase, and the new project in Junao has also been put into the pre-construction design phase. We estimate that the Tsuen Wan project will be completed in 2021, while the first phase of the PLA Australia project will be completed between 2022 and 2023, with a total area of about 2.8 million square feet. In addition, the exhibition project of MEGA-i is also under way to provide more data center machine rooms and power supplies to meet the higher demand of end-end suppliers.
Collect the Sha Tin data Centre for the sale of investment goods
The bazaar announced that it will collect the entire industrial complex in Sha Tin from the parent company at HK $2.22 billion. At present, most of the industrial buildings are temporarily used by the rental and data center MEGA Two. At the same time, Marketplace sold the investment property of the market to the parent company at HK $1.81 billion, including the Standard Chartered Centre, Phase 1, Kodak City, Kowloon and Kodak House Phase II, North Point. The gold outflow resulting from the collection and sale is about HK $410 million. Through the sale of non-business-related properties, we will at the same time close the industrial complex of the Sha Tin data Center, so as to further concentrate our resources on the data center, which is conducive to long-term development.
The payout rate is too high and the dividend payout ratio has not been reduced.
As of June 30, 2019, there were 3.3 billion Hong Kong dollars in stock loans and 4.75 billion Hong Kong dollars in bank loans, of which 2.18 billion Hong Kong dollars were short-term obligations. The interest-bearing equity ratio rose to 181%, which is at a very high level with the same industry ratio. Although there is no cut in the dividend ratio in this collection, even if the military project is built, we believe that the collection will have further capital requirements, so we hold on to the forecast that the dividend ratio will be reduced in the future.