Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [2]. Core Insights - The company has shown steady revenue growth, with a projected increase in operating income from 9,957 million RMB in 2023 to 11,387 million RMB in 2024, reflecting a growth rate of 14.4% [2][3]. - The adjusted EBITDA for the company is expected to improve significantly, with projections of 50.94 billion RMB in 2024, 59.91 billion RMB in 2025, and 71.62 billion RMB in 2026 [3]. - The domestic business is performing well, with a notable increase in occupancy rates and data center area, which has grown to 580,165 square meters, a year-on-year increase of 9.9% [3]. - International business demand is also on the rise, with significant growth in the GDSI segment, which achieved a revenue of 2.56 billion RMB in Q2 2024, a quarter-on-quarter increase of 24% [3]. Financial Summary - The company's total assets are reported at 791.65 billion RMB, with a net asset value of 194.47 billion RMB [1]. - The projected net profit is expected to improve from a loss of 4,285 million RMB in 2023 to a profit of 329 million RMB by 2026 [2][4]. - The gross profit margin is anticipated to increase, with net profit margins projected to rise from -43.0% in 2023 to 30.1% in 2026 [2][4]. Business Development - The company is actively pursuing asset monetization projects, including the establishment of a REIT for data center assets, which is currently undergoing regulatory approval [3]. - The company has a cash balance of 31 billion RMB as of Q2 2024, with plans for further equity financing to support growth initiatives [3]. Market Position - The report highlights the company's strong position in both domestic and international markets, with a clear strategy for growth and expansion in data center services [3]. - The company is expected to benefit from increased demand for data center services driven by technological advancements and digital transformation trends [3].

Investment Rating - The report maintains a "Buy" rating for the company [2][6] Core Insights - The company reported better-than-expected Q2 results, with revenue of approximately 2.826 billion RMB, a year-on-year increase of 17.7%, and adjusted EBITDA of 1.312 billion RMB, up 14.9% [1][5] - The company has maintained its full-year guidance, expecting revenue between 11.34 billion and 11.76 billion RMB, with a year-on-year growth rate of 13.9% to 18.1% [1][5] - The company is experiencing robust growth in its China operations, benefiting from accelerated onboarding of large internet companies, with Q2 revenue reaching 2.58 billion RMB, a year-on-year increase of 8.9% [1][5] - The international business is gaining momentum with significant orders, including a 205MW capacity reservation in Malaysia and a large sales contract with a global tech company [1][5] - The company plans to complete a Series B financing of 600 to 800 million USD by the end of 2024 to support its international expansion [1][5] Financial Summary - For 2024, the company expects total revenue of 11.508 billion RMB, with a year-on-year growth of 15.6% [4][7] - Adjusted EBITDA is projected to be 4.950 to 5.150 billion RMB, reflecting a year-on-year growth of 7.0% to 11.4% [4][7] - The company has a market capitalization of approximately 20.88 billion HKD and a year-to-date stock price change of 56.95% [3][4]

Financial Performance - For Q2 2024, GDS Holdings reported a net revenue of RMB 2,826.4 million (USD 388.9 million), representing a year-over-year increase of 14.3%[4] - Adjusted EBITDA for Q2 2024 grew by 6.2% year-over-year to RMB 1,312.2 million (USD 180.6 million), with an adjusted EBITDA margin of 46.4%[4] - Gross profit for Q2 2024 was RMB 637.8 million (USD 87.8 million), a 15.8% increase from RMB 551.0 million in the same period last year[8] - The net loss for Q2 2024 was RMB 231.8 million (USD 31.9 million), slightly higher than the net loss of RMB 225.3 million in the same period last year[10] - Total net revenue for the six months ended June 30, 2024, reached RMB 5,453,736, an increase from RMB 4,880,978 for the same period in 2023, representing a growth of approximately 11.7%[33] - Gross profit for the six months ended June 30, 2024, was RMB 1,211,499, compared to RMB 1,042,684 for the same period in 2023, reflecting a year-over-year increase of about 16.2%[33] - The net loss attributable to the shareholders of the company for the six months ended June 30, 2024, was RMB 571,568, compared to RMB 729,119 for the same period in 2023, showing a reduction in losses by approximately 21.6%[33] Operational Metrics - The total contracted and pre-contracted area reached 756,992 square meters, an increase of 18.7% year-over-year[5] - The operational area increased by 18.8% year-over-year to 630,963 square meters, with a utilization rate of 92.5%[5] - The billing area grew by 20.9% year-over-year to 462,673 square meters, with a billing rate of 73.3%[6] - The total area signed and pre-signed at the end of Q2 2024 was 614,094 square meters, a year-over-year increase of 3.5% from 593,068 square meters[12] - The operational area at the end of Q2 2024 was 580,165 square meters, reflecting a 9.9% year-over-year increase from 528,105 square meters[13] - The billing area at the end of Q2 2024 was 419,976 square meters, a 10.2% increase compared to 380,978 square meters in the same period last year[14] - The operational area occupancy rate was 84.1% at the end of Q2 2024, compared to 58.4% in Q2 2023 and 98.2% in Q1 2024[18] International Expansion - International revenue surged by 690.2% year-over-year to RMB 255.5 million (USD 35.2 million)[8] - The total area signed and pre-signed in international markets reached 142,898 square meters, a significant year-over-year increase of 220.5% from 44,593 square meters[15] - GDS Holdings emphasized a strong focus on strategic goals, contributing to robust performance in Q2 2024, particularly in international markets[6] Expenses and Cost Management - In Q2 2024, total sales and marketing expenses were RMB 22.5 million (USD 3.1 million), a decrease of 1.9% compared to RMB 22.9 million (USD 3.2 million) in the same period last year[9] - General and administrative expenses increased by 51.0% to RMB 127.6 million (USD 17.6 million) from RMB 84.5 million (USD 11.7 million) year-over-year, primarily due to rapid international business expansion[9] - R&D costs in Q2 2024 were RMB 10.9 million (USD 1.5 million), up from RMB 5.0 million (USD 0.7 million) in the same period last year[9] Future Guidance and Strategy - The company confirmed its revenue guidance for 2024 to be between RMB 11,340 million and RMB 11,760 million, with adjusted EBITDA expected to be between RMB 4,950 million and RMB 5,150 million[19] - Capital expenditures for 2024 are expected to remain around RMB 6,500 million[19] - The company plans to expand its market presence and enhance product offerings in the upcoming quarters, focusing on technology advancements and strategic partnerships[34] - The company is focusing on strategic acquisitions to enhance its service offerings and market share, targeting a 20% increase in operational efficiency through these initiatives[38] Financial Position and Stability - As of June 30, 2024, total cash was RMB 9,907.8 million (USD 1,363.4 million) with total short-term debt of RMB 5,597.5 million (USD 770.2 million)[11] - The company reported a total asset value of RMB 79,165,413 as of December 31, 2024, an increase from RMB 74,446,690 as of December 31, 2023, indicating growth in asset base[31] - Total liabilities decreased to RMB 56,290,271 as of December 31, 2024, from RMB 54,322,887 as of December 31, 2023, suggesting improved financial stability[31] - The company’s cash position improved to RMB 9,907,823 as of June 30, 2024, compared to RMB 7,710,711 as of December 31, 2023, indicating better liquidity[31] Risks and Challenges - The company faces risks related to market competition, regulatory changes, and operational challenges that could impact its financial performance[29] - The company emphasizes the importance of addressing inherent risks and uncertainties in its forward-looking statements regarding business growth and revenue expectations[28] Corporate Governance and Structure - The company has a dual-class share structure, with Class A and Class B shares, where Class B shares have 20 votes per share in specific matters[57] - The company’s bylaws allow Class B shareholders to nominate five directors, with voting power of 20 votes per Class B share[58] - The quorum for the shareholders' meeting requires at least two voting shareholders representing no less than one-third of the total voting shares[59]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 11.28, indicating a potential upside of 43.0% from the current price of HKD 7.89 [2][6]. Core Insights - The company's Q1 2024 performance was broadly in line with expectations, showing steady growth with a revenue of approximately RMB 2.63 billion, a year-on-year increase of 9.1%. Adjusted EBITDA was RMB 1.18 billion, up 4.7% year-on-year, representing 25.5% of the annual forecast [1][5]. - The company has maintained its full-year guidance, expecting total revenue between RMB 11.34 billion and RMB 11.76 billion, with a year-on-year growth rate of 13.9% to 18.1% [1][5]. - The company is expanding its business scale, with operational area increasing to 583,229 square meters, a 1.9% quarter-on-quarter rise, and a utilization rate of 74.9% [1][5]. - International business continues to progress, with significant capacity reservations and a recent increase in funding for international data center expansion [1][5]. Financial Summary - For the fiscal year ending December 31, 2024, the company is projected to achieve revenues of RMB 11.36 billion, with a compound annual growth rate (CAGR) of 12% from 2024 to 2026. Adjusted EBITDA is expected to be RMB 4.65 billion, with a CAGR of 11% during the same period [2][4]. - The company reported a net loss of RMB 1.10 billion for 2024, with an expected improvement in losses over the following years [4][7]. - The company’s operational metrics show a total operational area of 583,229 square meters and a signed area of 668,012 square meters, reflecting a stable business environment [5][7].

Financial Performance - For Q1 2024, GDS Holdings reported a net revenue of RMB 2,627.4 million (USD 363.9 million), representing a year-over-year increase of 9.1% from RMB 2,409.0 million in Q1 2023[4]. - The net loss for Q1 2024 was RMB 344.9 million (USD 47.8 million), an improvement from a net loss of RMB 474.6 million in Q1 2023[4]. - Adjusted EBITDA for Q1 2024 grew by 4.7% year-over-year to RMB 1,183.4 million (USD 163.9 million), with an adjusted EBITDA margin of 45.0%[4][6]. - The gross profit for Q1 2024 was RMB 573.7 million (USD 79.5 million), a 16.7% increase from RMB 491.7 million in Q1 2023[7]. - The adjusted gross profit for Q1 2024 was RMB 1,368.1 million (USD 189.5 million), up 8.6% from RMB 1,259.4 million in Q1 2023[8]. - The cost of sales for Q1 2024 was RMB 2,053.7 million (USD 284.4 million), a 7.1% increase from RMB 1,917.3 million in Q1 2023[7]. - In Q1 2024, the adjusted gross margin was 52.1%, compared to 52.3% in Q1 2023 and 49.7% in Q4 2023, primarily due to a decrease in maintenance and other operating costs[9]. - The company confirmed its revenue guidance for 2024 to be between RMB 11,340 million and RMB 11,760 million, with adjusted EBITDA expected to be between RMB 4,950 million and RMB 5,150 million[18]. Operational Metrics - The total contracted and pre-contracted area as of March 31, 2024, was 668,012 square meters, a 5.4% increase from 633,611 square meters a year earlier[5]. - The operational area increased by 12.5% year-over-year to 583,229 square meters, with a utilization rate of 74.9%[5]. - The total signed and pre-signed area at the end of Q1 2024 was 668,012 square meters, a 5.4% increase from 633,611 square meters at the end of Q1 2023, but a 0.4% decrease from 670,975 square meters at the end of Q4 2023[12]. - The operational area at the end of Q1 2024 was 583,229 square meters, a 12.5% increase from 518,517 square meters at the end of Q1 2023 and a 1.9% increase from 572,555 square meters at the end of Q4 2023[14]. - The billing area at the end of Q1 2024 was 436,875 square meters, a 16.0% increase from 376,632 square meters at the end of Q1 2023 and a 4.3% increase from 418,748 square meters at the end of Q4 2023[15]. - The operational area billing rate in Q1 2024 was 74.9%, compared to 72.6% in Q1 2023 and 73.1% in Q4 2023[15]. Expenses and Investments - Sales and marketing expenses in Q1 2024 were RMB 26.7 million (USD 3.7 million), a 5.3% increase from RMB 25.3 million in Q1 2023 and a 2.9% increase from RMB 25.9 million in Q4 2023, mainly due to increased marketing activities[9]. - General and administrative expenses in Q1 2024 were RMB 153.4 million (USD 21.2 million), a 30.6% increase from RMB 117.4 million in Q1 2023 and a 13.5% increase from RMB 135.1 million in Q4 2023, driven by international business expansion[9]. - R&D expenses in Q1 2024 were RMB 10.0 million (USD 1.4 million), compared to RMB 9.8 million in Q1 2023 and RMB 12.8 million in Q4 2023[9]. - GDS Holdings increased its private equity financing for GDSI from USD 587 million to USD 672 million to support accelerated customer demand[6]. - The company obtained new debt financing and refinancing credit amounting to RMB 4,294.0 million (USD 594.7 million) in the first quarter of 2024[16]. - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth[30]. Debt and Cash Position - As of March 31, 2024, cash amounted to RMB 7,641.4 million (USD 1,058.3 million) while total short-term debt was RMB 5,893.5 million (USD 816.2 million)[16]. - The total long-term debt reached RMB 42,207.0 million (USD 5,845.6 million), including long-term loans of RMB 26,806.8 million (USD 3,712.7 million)[16]. - The company's cash and cash equivalents as of March 31, 2024, were RMB 7,641,439 thousand, a decrease of 0.9% from RMB 7,710,711 thousand as of December 31, 2023[29]. Market Outlook and Strategy - GDS Holdings is focused on maintaining and enhancing relationships with new and existing customers to support its business growth[27]. - The company is exploring strategic acquisitions and investments to expand its operations and market presence[27]. - GDS Holdings anticipates continued growth in the high-performance data center market in China and Southeast Asia, driven by increasing adoption of cloud computing and cloud service providers[27]. - The future outlook remains positive with expectations of continued revenue growth and improved margins[39]. - The company is committed to investing in new technologies to stay competitive in the market[39]. Risks and Compliance - GDS Holdings faces inherent risks and uncertainties that may impact its actual performance compared to forward-looking statements, including competition and regulatory changes in the industry[27]. - The company is committed to providing accurate and timely updates regarding its business outlook and operational strategies[27].

| --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------|----------------------|-------|-------| | | | | | | | | | | | | | | | | | | | 11 > GDS万国数据 GDS Holdings Limited 萬國數據控股有限公司 * (於開曼群島以GDS Holdings Limited的名稱註冊成立及以不同投票權控制的有限公司› 並以GDS WanGuo Holdings Limited於香港經營 ...

Investment Rating - The report maintains an "Outperform" rating for GDS Holdings [3][4][10] Core Views - The company's net loss has expanded due to non-cash asset impairment, reflecting weak industry demand [4][9] - The company achieved total revenue of approximately RMB 9.957 billion in 2023, a year-on-year increase of 6.8%, with adjusted EBITDA of RMB 4.624 billion, up 8.8% [4][10] - The company is focusing on international business expansion, having secured a total of USD 587 million in convertible preferred stock subscriptions to support operations [4][10] - Revenue growth is expected to improve in 2024, with projections indicating a growth rate of over 12% [4][10] Financial Summary - Revenue projections for 2024-2026 are RMB 11.151 billion (+12%), RMB 12.824 billion (+15%), and RMB 15.004 billion (+17%) respectively [4][10] - Adjusted EBITDA for the same period is expected to be RMB 5.046 billion (+0.16%), RMB 5.667 billion (-2.0%), and RMB 6.332 billion [4][10] - The target price is set at HKD 19.09, reflecting a target market cap of RMB 26.892 billion based on a 13x EV/EBITDA multiple for 2024 [4][10]

香港交易及結算所有限公司、香港聯合交易所有限公司（「香港聯交所」）及香港中央結算有限公 司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因 本公告全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 萬國數據控股有限公司*（「本公司」）以不同投票權控制。股東及有意投資者務請留意投資不同 投票權架構公司的潛在風險，特別是不同投票權受益人的利益未必總與股東整體利益一致，而 不論其他股東如何投票，不同投票權受益人會對股東決議案的結果有重大影響。我們的美國存 託股（每股美國存託股代表八股A類普通股）於美國納斯達克全球市場上市，股份代號為GDS。 GDS Holdings Limited 萬國數據控股有限公司* （於開曼群島以GDS Holdings Limited的名稱註冊成立及以不同投票權控制的有限公司， 並以GDS WanGuo Holdings Limited於香港經營業務） （股份代號：9698） 2023年第四季度及全年業績公告 我們謹此宣佈截至2023 年12 月31 日止第四季度及全年的未經審計財務業績 （「業績公告」）。業績公告可於香港聯交所網站 ww ...

香港交易及結算所有限公司、香港聯合交易所有限公司（「香港聯交所」）及香港中央結算有限公 司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因 本公告全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 萬國數據控股有限公司*（「本公司」）以不同投票權控制。股東及有意投資者務請留意投資不同 投票權架構公司的潛在風險，特別是不同投票權受益人的利益未必總與股東整體利益一致，而 不論其他股東如何投票，不同投票權受益人會對股東決議案的結果有重大影響。我們的美國存 託股（每股美國存託股代表八股A類普通股）於美國納斯達克全球市場上市，股份代號為GDS。 GDS Holdings Limited 萬國數據控股有限公司* （於開曼群島以GDS Holdings Limited的名稱註冊成立及以不同投票權控制的有限公司， 並以GDS WanGuo Holdings Limited於香港經營業務） （股份代號：9698） 2023年第三季度業績公告 我們謹此宣佈截至 2023 年 9 月 3 0 日止第三季度的未經審計財務業績（「業 績公告」）。業績公告可於香港聯交所網站 www.h ...

香港交易及結算所有限公司、香港聯合交易所有限公司（「香港聯交所」）及香港中央結算有限公 司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因 本公告全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 萬國數據控股有限公司*（「本公司」）以不同投票權控制。股東及有意投資者務請留意投資不同 投票權架構公司的潛在風險，特別是不同投票權受益人的利益未必總與股東整體利益一致，而 不論其他股東如何投票，不同投票權受益人會對股東決議案的結果有重大影響。我們的美國存 託股（每股美國存託股代表八股A類普通股）於美國納斯達克全球市場上市，股份代號為GDS。 GDS Holdings Limited 萬國數據控股有限公司* （於開曼群島以GDS Holdings Limited的名稱註冊成立及以不同投票權控制的有限公司， 並以GDS WanGuo Holdings Limited於香港經營業務） （股份代號：9698） 公告 茲提述本公司於2023年8月22日發佈的有關其截至2023年6月30日止三個月及六 個月的未經審計財務業績的公告（「業績公告」）。繼業績公告後及根據香港聯合交 ...