Chinese data center operator GDS Holdings' Q2 revenue up 12.4%

Overview

• GDS Holdings Q2 revenue rises 12.4% Y-o-Y to RMB2.9 bln

• Net loss narrows to RMB70.6 mln from RMB231.8 mln Y-o-Y

• Adjusted EBITDA increases 11.2% Y-o-Y to RMB1.37 bln

Outlook

• GDS maintains 2025 revenue guidance at RMB11,290-11,590 mln

• Company keeps 2025 adjusted EBITDA guidance at RMB5,190-5,390 mln

• GDS revises 2025 capex guidance down to RMB2,700 mln

• Company sees opportunities in Tier 1 markets driven by AI evolution

Result Drivers

• DATA CENTER RAMP-UP - Revenue increased by 12.4% Y-o-Y to RMB2,900.3 mln, driven by continued ramp-up of data centers, per CFO Dan Newman

• GROSS PROFIT INCREASE - Gross profit rose 21.8% Y-o-Y to RMB688.9 mln, attributed to lower operating costs as a percentage of net revenue

• IPO SUCCESS - Completion of C-REIT IPO on Shanghai Stock Exchange provides enhanced financing flexibility, according to CFO Dan Newman

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for GDS Holdings Ltd is $46.30, about 31.8% above its August 19 closing price of $31.59

Press Release: ID:nGNX1TtNHd