The Point for Australia/NZ

Research evidence excerpt

The Point for Australia/NZ

NEXTDC Ltd. (NXT.AX) - Going GW-scale with Geelong land purchase

NXT has acquired a 169 hectares site in Geelong for $165 million. For context, the

land parcel is ~6x the size of S7 which NXT acquired for $353 million in 2024

(258k sqm vs. 1.6 million sqm for the Geelong site). While NXT wouldn't talk to the

target capacity for the new DC site, we estimate that it is likely 1 GW+ especially

when considering that density is increasing and would be 2x current planned

capacity in Victoria of 514 MWs . NXT noted that give the relatively low cost of

land, the development is expected to be single-level, with a faster build time.

Siraj Ahmed

The A2 Milk Company Ltd (A2M.AX) - 6.18 rankings look reasonable in current

circumstances

We've come across Tmall Global 6.18 pre-sales rankings for the baby category and

we thought a2's rank of #5 was positive given the ranking has fallen only 2 places

from #3 in the 2025 Double 11 festival, despite a2's supply constraints and market

access challenges. We also think the risk of longer-term brand damage appears to

be minimal as these 6.18 pre-sales also occurred after the news of a2's US recall

spread to China in early May 2025. This gives us incrementally more confidence

that a2 can recover its market share over FY27 as supply normalises. Other

international players such as Aptamil and Nestle remained broadly unchanged.

Sam Teeger

Xero Limited (XRO.AX) - UK price increase slightly higher than last year;

supports our 4% ARPU growth forecast in UK

Xero's business plan price increases this year in the UK are skewed towards plans

that saw lower or no price increase last year, i.e. Starter/Ignite and

Comprehensive. Overall, we estimate a weighted price increase of ~8% this year,