Subscribe

21Vianet Shares Rise 11.04% Intraday on Nasdaq
COVID-19 and China
Image credit: EqualOcean

The stocks of 21 Vianet Group Inc.(VNET:NASDAQ) ascended 11.04% to USD 24.15 apiece on the latest trading day.

The shares provide investors decent returns, with a quarter return of 69.24% and year to date performance of 233.10%.

The company published its first-quarter financials on May 14, generating CNY 1.09 billion revenue, which showed an increase of 25.1% from one year before. It moved further far away from the breakeven point, so that the net income attributable to ordinary shareholders declined to CNY -138 million. The firm also faces a large cash flow deficit, giving a CNY -377.4 million free cash flow (defined by operating cash flow minus Capex) for the same period.

Q1 2020 operation highlights showed a slight decrease in monthly recurring revenue for each data center cabinet to CNY 8747. The total cabinets increased by 3555 to 39646, which made the key performance indicator utilization rate fall to 60.4% from 65.6% compared to one quarter earlier.  

VNET provides colocation services to internet companies, government clients and small to middle-sized businesses in China through a carrier-neutral business model. It operates 26 self-built data centers and 51 partnered data centers located in over 20 cities, its network connects to 165 Points of Presence.

The company announced a USD 150 million investment from Blackstone in the form of preferred shares on June 22 this year.

ANALYST
See Also

Communicate Directly with the Author!

Ask the author questions about the copied text

Research Reports
Editor's Picks