Nextlink will be Listed in the Emerging Stock Market from 1/9

Nextlink (6997), a subsidiary of Far EasTone Telecommunications, held a pre-registration performance conference yesterday (4th). Nextlink is optimistic about the future cloud migration trend of large enterprises. In addition to agency business, it will continue to expand its own products and overseas markets. It is optimistic about future growth.

Nextlink will be officially listed and available for trading on the emerging stock market on January 9th. It belongs to the digital cloud category. Nextlink has a capital of NT$200 million, and its major shareholder Far EasTone holds nearly 70% of the shares. In addition to deeply exploring the Taiwan market, it also has a presence in overseas markets such as Hong Kong, mainland China, Singapore, and Malaysia.

Nextlink Chairman Philip Tseng said that the development of Taiwan's cloud industry is slower than that of the world. After the Russia-Ukraine war, the government's attitude towards data migration to the cloud changed, driving trends such as telecom big data, finance industry cloud, and medical cloud. Taiwan's cloud applications will grow in the future. The rate is greater than the global average, and Nextlink is optimistic about its future growth. Nextlink will strengthen its technical capabilities. Only by putting its technological advantages in talents can it widen the distance from its competitors and attract and retain talents by entering the capital market.

Nextlink represents the world's three major public cloud services, AWS, Google, and Microsoft. It ranks among the top market share in each ecological chain. It has more than 400 original licenses and more than 2,000 customers at home and abroad. Its industries cover finance, software and Internet, game and entertainment, and retail.

Shasta Ho, the general manager of Nextlink, said that the Company has three growth engines, including the agency service model to quickly accumulate customers; the development of technical service model; the self-owned product and software development service model. It must use its own products to increase gross profit margins and continue to deepen its connection with the customers.

Nextlink's self-owned products contributed about 3% to 5% of revenue in 2023. In the future, it will move towards the 10% goal, and agency services will account for 90%. In 2023, the gross profit of self-owned services accounted for about 74.7%, and the gross profit of agency services accounted for about 25.3%. Nextlink's revenue in 2022 was NT$5.062 billion, with net earnings per share of NT$ 3.8; in the first half of 2023, revenue was NT$2.32 billion, with net earnings per share of NT$2.7.

In recent years, Nextlink has actively deployed overseas markets, with overseas markets accounting for more than 50% of its revenue. Shasta Ho said that it will continue to expand the Southeast Asian market, such as Singapore and Malaysia in the first quarter of last year.

To consolidate its position as a leader in all-round cloud services in Taiwan and Hong Kong, Nextlink continues to expand technology investment, increase investment in forward-looking fields, invest in AI applications, and market product applications to more countries and customers through the original ecosystem.