Summary of NewEase Network Group Conference Call Company Overview - NewEase Network Group's core business is the Interconnection Advantage business, providing IDC services through data centers, operating 8 data centers with a total power capacity exceeding 100 megawatts and a utilization rate of 90% [2][4] - The company has a unique fiber interconnection network backed by Sun Hung Kai Properties, giving it advantages in land, power, financing, and engineering construction [2][6] - Mega I data center connects over 9 submarine cable systems globally, making it the first interconnection center in Asia [2][8] Financial Performance - For the fiscal year 2025, NewEase Network Group reported a net profit of 900 to 1,000 million HKD, with an EBITDA margin around 70% [3] - The average monthly rental revenue per cabinet for IDC facilities is projected to reach 2,500 HKD per kilowatt per month, with an average EBITDA of 2,000 HKD per kilowatt per month in the second half of 2024 [10] - The company maintains a gross margin of over 52% for data center-related businesses, with annual revenue growth of over 10% [5][10] Customer Structure - The customer base is diverse, including international cloud clients (Oracle, Amazon, Google) and domestic cloud clients (Alibaba, Tencent), with cloud clients accounting for a significant portion of data center revenue [2][11] - The expansion of international cloud clients and domestic clients going global is expected to benefit the company [11] Competitive Advantages - NewEase Network Group's competitive advantages include its exclusive fiber interconnection network and support from Sun Hung Kai Properties, allowing it to secure prime locations in Hong Kong [6][12] - The company has a significant market share of over 30% in the Hong Kong IDC market, while competitors hold less than 10% [12] Future Outlook - The company is entering a new phase of investment and expansion, with the completion of Mega Gateway and Mega IDC, the largest IDC in Hong Kong, which has a total floor area of 1.2 million square feet and supports 180 megawatts of power capacity [13] - Future capacity may increase to 280-300 megawatts, potentially generating over 3 billion HKD in net profit [13] - The growth of AI applications is expected to further enhance performance, with an anticipated increase in cabinet utilization and delivery volume [7] Industry Context - As of January 2025, Hong Kong's telecommunications network connects 12 submarine cable systems, with several more under construction, enhancing the region's connectivity [8] - NewEase Network Group's Mega I data center is part of a larger ecosystem connecting over 200 telecommunications and internet service providers globally [8][9]

Group 1 - The company, New Idea Network Group (01686), announced the issuance of 20,000 shares due to the exercise of stock options [1] - The stock options were granted under a stock option plan adopted on November 1, 2022 [1] - The exercise date for the stock options is set for September 10, 2025 [1]

Group 1 - The company, Neway Group (01686), announced the issuance of 20,000 shares due to the exercise of stock options [1] - The stock options were granted under a stock option plan adopted on November 1, 2022 [1] - The exercise date for the stock options is set for September 10, 2025 [1]

Group 1 - The company, Neway Group (01686.HK), announced the issuance of 20,000 shares on September 10, 2025, based on the exercise of stock options granted under the stock option plan adopted on November 1, 2022 [1]

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 新意網集團有限公司 呈交日期： 2025年9月10日 FF305 B. 贖回/購回股份 (擬註銷但截至期終結存日期尚未註銷) (註5及6) 第 2 頁 共 6 頁 v 1.3.0 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | 01686 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | ...

Group 1 - Goldman Sachs has lowered the target price for Neway Group (01686) from HKD 10.9 to HKD 10 while maintaining a "Buy" rating [1] - For the second half of fiscal year 2025, EBITDA is projected to be HKD 1.068 billion, with earnings per share (EPS) at HKD 0.1217, reflecting a 9% decrease in EBITDA compared to expectations due to an 11% shortfall in revenue, partially offset by a 2 percentage point increase in EBITDA margin [1] - The effective tax rate is approximately 15%, lower than the expected 16%, and depreciation and amortization are below expectations [1] Group 2 - The final dividend per share is set at HKD 0.12, which is 13% lower than the forecast, with an annual payout ratio of approximately 46%, down from the expected 50% [1] - The company has revised revenue forecasts for fiscal years 2026 and 2027 down by 11% and 13% respectively, with EPS estimates reduced by 12% and 16% [1] - The anticipated payout ratio for fiscal years 2026 to 2028 is expected to remain at 46%, previously estimated at 50%, with projected EPS and dividend per share for 2028 at HKD 0.37 and HKD 0.17 respectively [1]

Core Viewpoint - Goldman Sachs has lowered the target price for Neway Group (01686) from HKD 10.9 to HKD 10 while maintaining a "Buy" rating [1] Financial Performance - For the second half of fiscal year 2025, EBITDA is projected to be HKD 1.068 billion, with earnings per share (EPS) at HKD 0.1217 [1] - EBITDA is 9% lower than Goldman Sachs' expectations, primarily due to revenue falling short by 11%, although this was partially offset by a 2 percentage point expansion in EBITDA margin [1] - Depreciation and amortization were lower than expected, with an effective tax rate of approximately 15%, compared to the anticipated 16% [1] Dividend Information - The final dividend per share is set at HKD 0.12, which is 13% lower than Goldman Sachs' expectations [1] - The annual payout ratio is approximately 46%, down from the previously expected 50%, with management reaffirming that the upper limit of the payout ratio will remain at 50% [1] Future Projections - Revenue forecasts for fiscal years 2026 and 2027 have been reduced by 11% and 13%, respectively, with EPS estimates lowered by 12% and 16% [1] - It is anticipated that the payout ratio will remain at 46% for fiscal years 2026 to 2028, compared to the previous expectation of 50% [1] - For 2028, EPS and dividend per share are projected to be HKD 0.37 and HKD 0.17, respectively [1]

Group 1 - The company's revenue for the fiscal year 2025 is HKD 2.938 billion, representing a year-on-year growth of 10.0%, primarily driven by new data centers contributing to power capacity and ramp-up [1] - EBITDA profit margin slightly increased by approximately 3 percentage points to 72% year-on-year, with adjusted EBITDA at HKD 2.128 billion, a 15% increase, slightly below the forecast of HKD 2.2 billion due to delayed tenant occupancy in MEGA IDC Phase 1 [1] - Operating cash inflow rose by 23.5% year-on-year to HKD 2.063 billion, and the company proposed a final dividend of HKD 0.12 per share, a 7% increase year-on-year, maintaining a payout ratio of approximately 50% [1] Group 2 - The MEGA IDC Phase 1 has commenced operations, providing approximately 500,000 square feet of total floor area and 50 MW of power capacity, making it the largest data center in Hong Kong by power capacity [1] - The company anticipates revenue growth in the next two to three years will primarily come from additional 700,000 square feet of floor area and 130 MW of power capacity from future phases of MEGA IDC, as well as annual rental increases of about 3-5% from mature projects [1] - The company expects to have passed the peak of capital expenditure and interest rate cycles, with capital expenditure projected to decrease from approximately HKD 2.97 billion last year to about HKD 1.18 billion for fiscal year 2025 [2] Group 3 - The company maintains a neutral rating and target price of HKD 8.58, reflecting a valuation that adequately captures the positive fundamentals, with an EV/EBITDA of approximately 20 times for 2026, comparable to leading international data center operators [2] - The company believes that new projects will enhance power capacity, and the rising demand for AI applications in cloud computing and enterprise sectors will contribute to accelerated revenue growth in the medium to long term [2] - However, the current valuation is not significantly discounted compared to international peers, indicating limited short-term upside unless the pace of new project occupancy accelerates [2]

Investment Rating - The report maintains a neutral rating for the company with a target price of HKD 8.58, corresponding to approximately 20 times the 2026 EV/EBITDA, which is similar to leading international data center operators [1][3][5]. Core Insights - The company's fiscal year 2025 performance was slightly below expectations, with revenue of HKD 2.938 billion, representing a year-on-year growth of 10.0%. This growth was primarily driven by new data centers contributing to power capacity and ramp-up [1][2]. - The adjusted EBITDA for fiscal year 2025 was HKD 2.128 billion, a 15.1% increase year-on-year, but slightly below the forecast of approximately HKD 2.2 billion due to a delay in tenant occupancy at MEGA IDC Phase 1 [1][2]. - The company expects revenue growth in the next two to three years to be driven by additional floor space and power capacity from future phases of MEGA IDC and annual rental increases of approximately 3-5% from mature projects [1][2]. Summary by Sections Financial Performance - Revenue for fiscal year 2025 was HKD 2,938 million, up 9.9% from HKD 2,674 million in fiscal year 2024 [2]. - Adjusted EBITDA increased to HKD 2,128 million, with an EBITDA margin rising to 72.4%, up 3.3 percentage points from the previous year [2]. - Operating cash flow rose by 23.5% to HKD 2,063 million [2]. Operational Developments - The first phase of MEGA IDC has commenced operations, providing approximately 500,000 square feet of total floor area and 50 MW of power capacity, making it the largest data center in Hong Kong by power capacity [1]. - The operational capacity increased by approximately 3% year-on-year to 104 MW [1]. Future Outlook - The company anticipates a decline in capital expenditures from HKD 29.7 billion last year to approximately HKD 11.8 billion in fiscal year 2025, indicating a peak in capital spending and interest rate cycles [1]. - The report suggests that the current valuation reflects the positive fundamental drivers, with limited short-term upside unless the pace of new project occupancy accelerates [1].

截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 公司名稱: 新意網集團有限公司 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01686 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 10,000,000,000 | | HKD | | 0.1 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | 0 | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | 本月底 ...