Precise(SZ:300442) 3 6 Ke·2025-05-22 08:44Core Viewpoint - The public REITs market in China is expanding with new asset classes, particularly data center REITs, which are gaining traction due to the increasing demand for computing power driven by AI applications [1][2]. Group 1: Public REITs Expansion - The number of underlying asset types for public REITs in China has reached 10, including logistics, infrastructure, and now data centers [1]. - As of May 22, 2023, 56 out of 58 listed REITs achieved positive returns, with the highest performer, Huaan Bailian Consumption REIT, rising by 49.37% year-to-date [1]. Group 2: Data Center Characteristics - Data centers are transitioning into a "light asset era," providing essential infrastructure for computing systems, including power, cooling, and security [2][4]. - The demand for data centers is expected to grow significantly, with the market size projected to reach 304.8 billion yuan by 2024, reflecting over 20% year-on-year growth [6][7]. Group 3: Investment Dynamics - Data centers serve as a stable income source for REITs through cabinet hosting services, which are increasingly vital due to the rising demand for computing power [4][5]. - The concentration of large tech companies as tenants provides stability, but also poses risks due to high customer concentration [13][14]. Group 4: Risks and Challenges - Data center REITs face risks related to technology iteration, customer concentration, and the need for specialized operational teams [12][15]. - The high dependency on a few major clients can lead to significant impacts on revenue stability if any major tenant decides to vacate [13][15]. Group 5: Market Outlook - The public REITs market is expected to continue diversifying, with a stable increase in valuations anticipated despite high supply levels [16].