Group 1 - The Nasdaq China Golden Dragon Index opened with a gain of 1.6%, indicating a positive trend in popular Chinese concept stocks [1] - Notable stock performances include Li Auto (LI.US) rising over 7%, Alibaba (BABA.US) increasing by more than 6%, and GDS Holdings (GDS.US) up over 4% [1] - Other companies such as NIO (NIO.US), Bilibili (BILI.US), and Pony.ai (PONY.US) also saw gains exceeding 3% [1] Group 2 - The Governor of the People's Bank of China, Pan Gongsheng, stated that there is still room for further reserve requirement ratio cuts and interest rate reductions this year [1] - The People's Bank of China aims to effectively implement and supervise interest rate policies to maintain low comprehensive financing costs in society [1] - Luke Browne, Head of Asset Allocation at Manulife Investment Management for Asia, expressed a preference for Chinese stocks, suggesting that while explosive returns are not expected, there are still investment opportunities available [1]

Core Viewpoint - Morgan Stanley reports that demand for scale, resource availability, and policy are driving the deployment of hyperscale AI data centers towards remote areas, indicating a healthier supply-demand dynamic and stable return prospects in the remote data center market during the AI era [1] Company Summaries - Morgan Stanley is optimistic about GDS Holdings, assigning an "Overweight" rating and raising the target price from $54 to $64 due to its strategic transformation in the Chinese market and rapid progress in resource development in remote areas [1] - The firm also favors Century Internet, maintaining an "Overweight" rating and increasing the target price from $14 to $16, citing its first-mover advantage [1] - The rating for Aofei Data is maintained at "In Line with Market," while the ratings for Huayun New Network and Baoxin Software are kept at "Underweight," as their lack of effective layout in the right remote hubs poses a risk of market share loss in the medium to long term [1]

每经AI快讯，万国数据-SW(09698.HK)早盘涨超3%，截至发稿，涨2.77%，报40.08港元，成交额4230.7 万港元。 ...

建银国际发布研报称，万国数据的核心优势在于：在一线城市及周边区域布局高标准人工智能基础设 施，新增订单人工智能相关占比高，且发行国内首单数据中心公募REITs，资本运作效率行业领先。 消息面上，万国数据此前表示，将出售旗下DayOne3.85亿美元股份，股份购回将使万国数据得以回收 其在DayOne的投资本金的约95%，投资回报率接近6.5倍。回笼资金将用于国内AIDC投资，广发证券认 为，该举措意味着国内算力基础设施投资前沿依然乐观。 万国数据-SW(09698)早盘涨超3%，截至发稿，涨2.77%，报40.08港元，成交额4230.7万港元。 ...

建银国际发布研报称，万国数据的核心优势在于：在一线城市及周边区域布局高标准人工智能基础设 施，新增订单人工智能相关占比高，且发行国内首单数据中心公募REITs，资本运作效率行业领先。 消息面上，万国数据此前表示，将出售旗下DayOne 3.85亿美元股份，股份购回将使万国数据得以回收 其在DayOne的投资本金的约95%，投资回报率接近6.5倍。回笼资金将用于国内AIDC投资，广发证券认 为，该举措意味着国内算力基础设施投资前沿依然乐观。 智通财经APP获悉，万国数据-SW(09698)早盘涨超3%，截至发稿，涨2.77%，报40.08港元，成交额 4230.7万港元。 ...

Group 1 - The Nasdaq China Golden Dragon Index increased by over 2% [1] - Popular Chinese concept stocks generally rose, with Bilibili up 6.74%, Baidu up 6.59%, and GDS Holdings up 4.98% [1] - Other notable gains include Kingsoft Cloud rising by 4.14% and Miniso increasing by 4.06% [1] Group 2 - Legend Biotech experienced a significant decline, falling by 10.76% [1] - NetEase and Luckin Coffee both dropped nearly 3% [1] - Amer Sports saw a decrease of 1.63% [1]

Summary of Key Points from the Conference Call Industry Overview - The China data center sector is positioned as a crucial component in the AI ecosystem, benefiting from increased investments by internet companies in AI applications and infrastructure [1][9] - Anticipated dual-track expansion in chip supply, computing power demand, and regional capacity across East and West China [1][13] Core Insights - Order volume for China data center stocks is expected to be a primary focus for investors in 4Q25 and into 2026, with potential for earlier and larger demand due to the bidding process by internet hyperscalers [2][9] - GDS and VNET are projected to see significant growth in adjusted EBITDA, with GDS expected to grow by 12% and VNET by 23% year-over-year in 2027 [2][9] - DayOne, partially owned by GDS, is expanding its capacity with a total of 1.8GW secured by the end of 2025, including a mezzanine financing facility of €500 million to support its developments in Finland [3][9] Financial Projections - GDS's revenue is projected to reach Rmb 11.5 billion in 2025E, with an EBITDA of Rmb 5.4 billion [11][70] - VNET's revenue is expected to be Rmb 9.9 billion in 2025E, with an EBITDA of Rmb 2.9 billion [11][70] - SUNeVision's revenue is forecasted at Rmb 3.3 billion in 2025E, with an EBITDA of Rmb 2.4 billion [11][70] Capital Expenditure and Financing - GDS's organic capex is expected to reach Rmb 7 billion in 2026E, while VNET's capex is projected to exceed Rmb 8 billion [43][44] - Both companies are leveraging favorable financing channels, including private REITs, to support their capital expenditures [43][44] Market Dynamics - The data center market is expected to see a 14% CAGR in live capacity from 2025 to 2028, driven by demand from internet, cloud, and AI sectors [54][59] - Wholesale demand is projected to grow at a 19% CAGR, while retail demand is expected to grow at a lower rate due to physical constraints [54][59] Competitive Landscape - GDS and VNET are expected to account for approximately 13% of China's data center live demand by 2028, indicating ongoing industry consolidation [56][66] - The competitive environment may intensify as companies prioritize operational efficiency and wallet share in the face of rising demand [13][43] Additional Insights - The approval of Nvidia H200 chips for import into China could significantly impact the data center bidding process and chip supply dynamics [13][35] - The utilization rates of data centers are expected to improve, particularly in regions with lower power costs and favorable government incentives [43][56] Conclusion - The China data center sector is poised for growth driven by AI investments, favorable financing conditions, and increasing demand from cloud and internet services. GDS and VNET are well-positioned to capitalize on these trends, with significant projected revenue and EBITDA growth in the coming years [1][2][9][54]

Summary of Conference Call Notes Industry and Companies Involved - **Industry**: Communications Equipment - **Companies Covered**: - Accelink Technologies (002281.SZ) - Eoptolink Technology (300502.SZ) - EverProX Technologies (300548.SZ) - GDS Holdings (GDS.O) - Innolight (300308.SZ) - Suzhou TFC Optical Communication (300394.SZ) - T&S Communications (300570.SZ) - VNET Group (VNET.O) - ZTE (0763.HK) Key Points and Arguments EverProX Technologies (300548.SZ) - Target price raised to Rmb122 from Rmb63, reflecting a 46.5x 2026E EPS valuation, which is +1 standard deviation above the 5-year historical mean due to stronger earnings growth projected at a 152% 3-year CAGR [2][11] - 2025/26/27E earnings increased by 1%/26%/45% driven by robust overseas demand for MPO/AOC components, datacenter cables, and optical transceivers [2][11] - Rated as Neutral due to high current trading P/E of ~45x compared to T&S Communications at ~32x, indicating less upside potential [2][11] Suzhou TFC Optical Communication (300394.SZ) - Target price increased to Rmb222 from Rmb196, with 2026/27E earnings raised by 36%/56% due to anticipated growth in the 1.6T light engine market [3][15] - Maintained Buy rating, citing strong long-term earnings growth potential from CPO/OIO total addressable market opportunities and expected sales of FAU, ELSFP, and MT products [3][15] ZTE (0763.HK) - Downgraded to Neutral from Buy, with target price raised to HK$29.20 from HK$27.50 [4][19] - 2025/26/27E earnings reduced by 16%/14%/11% due to margin impacts from a ramping server business and memory price effects on the smartphone segment, partially offset by tighter operating expenses [4][19] - Valuation set at 15.0x 2026E P/E, which is 1.5 standard deviations above the stock's historical average, supported by positive sentiment towards AI server developments [4][19] Accelink Technologies (002281.SZ) - Coverage transferred with a maintained Sell rating and target price of Rmb24.60 [8][20] Eoptolink Technology (300502.SZ) - Coverage transferred with a maintained Buy rating and target price of Rmb472.00 [9][21] GDS Holdings (GDS.O) - Coverage transferred with a maintained Buy rating and target price of US$51.20 [12] Innolight (300308.SZ) - Coverage transferred with rating suspended [13] T&S Communications (300570.SZ) - Coverage transferred with a maintained Buy rating and target price of Rmb137.00 [16] VNET Group (VNET.O) - Coverage transferred with a maintained Buy rating and target price of US$20.00 [17] Other Important Information - The report indicates potential conflicts of interest due to the firm's business relationships with covered companies, advising investors to consider this report as one of several factors in their investment decisions [5] - The report is not for distribution in the People's Republic of China, excluding Hong Kong and Qualified Foreign Institutional Investors [5]

Group 1 - The stock of GDS Holdings Limited (09698.HK) increased by over 3%, specifically by 3.3%, reaching a price of 43.18 HKD [2] - The trading volume amounted to 47.1347 million HKD at the time of reporting [2]

Group 1 - The core point of the article is that 21Vianet Group, Inc. (万国数据-SW) has announced a share buyback agreement with DayOne Data Centers Limited, which will allow the company to recover approximately 95% of its investment in DayOne, with an expected return on investment of nearly 6.5 times [1][1][1] - The buyback involves a total value of $385 million for DayOne common stock, with the buyback price per share aligned with the recently announced price of over $2 billion for DayOne's Series C convertible preferred stock [1][1][1] - Following the buyback, the remaining equity held by 21Vianet in DayOne is valued at over $2.2 billion, equating to approximately $11.18 per American depositary share of 21Vianet [1][1][1] Group 2 - 21Vianet intends to reallocate the proceeds from the share buyback to invest in emerging opportunities within its core business in China that have significant return potential [1][1][1]