Summary of GDS Holdings Ltd Conference Call Company and Industry Overview - **Company**: GDS Holdings Ltd (GDS.O) - **Industry**: Greater China Telecoms Key Points and Arguments 1. **Revenue Estimates Adjustment**: Revenue estimates for GDS Holdings have been reduced by 3.1-3.3% for 2026-27E due to lower-than-expected new orders in 2025E and decreased contract pricing from renewals [1][2] 2. **EBITDA and EPS Revisions**: Adjusted EBITDA is lowered by 2.6% for 2026E and 2.4% for 2027E. Normalized EPS revisions are -0.3% for 2026E, -6.8% for 2027E, and -10.1% for 2028E, partially offset by a disposal gain [1] 3. **Price Target**: The price target remains unchanged at US$54 per share, with bull and bear case values also unchanged at US$73 and US$19 per share, respectively [2] 4. **Market Conditions**: The lower EBITDA in China is counterbalanced by a new forex assumption of 7.05 Rmb/US$ (previously 7.15) and lower net debt [2] 5. **Investment Thesis**: The demand in China is expected to recover mildly, driven by hyperscalers' cloud and AI capital expenditures. GDS's public REITs have received approvals, with an anticipated valuation of ~15x EV/EBITDA [11] 6. **International Expansion**: GDS's DayOne initiative is seeing successful overseas progress with strong order momentum [11] 7. **Utilization Rates**: Projected utilization rates are expected to increase from 73.8% in 2024 to 81.0% by 2027 [16] 8. **New Booking Projections**: New bookings are projected at 80,000 sqm for 2025-2027 [16] 9. **Market Share Recovery**: The market share recovery (MSR) growth is projected to be -2.0% in 2025, improving to 1% by 2027 [11] Additional Important Information 1. **Ownership Positioning**: Institutional ownership stands at 86.8%, with a long/short ratio of 2x and net exposure of 26.3% in the hedge fund sector [19] 2. **Risks to Price Target**: Upside risks include accelerated sales in overseas markets and further interest rate cuts, while downside risks involve increased competition and potential reductions in hyperscaler capex [20] 3. **Stock Performance Metrics**: The stock closed at US$35.70 on October 31, 2025, with a 52-week range of US$52.50-16.93 [4] This summary encapsulates the critical insights from the conference call regarding GDS Holdings Ltd, highlighting the adjustments in financial estimates, market conditions, and strategic initiatives.

Summary of GDS Holdings Conference Call Company Overview - **Company**: GDS Holdings - **Industry**: Data Center and Cloud Services - **Date of Call**: September 2, 2025 Key Points Industry Outlook - **Positive Demand for IDC**: Management expressed confidence in the demand for China's IDC (Internet Data Center) sector, citing the highest move-in rate and robust new bookings expected in 2025. GDS has already surpassed 180 megawatts (MW) of new bookings in the first half of 2025, matching the historical peak from 2020-2021 [3][4] - **AI Data Center Build Intent**: The strong intent to build data centers for AI applications in China is a significant driver for growth in the IDC industry [3] Business Commitments and Strategy - **H20 Chip Supply Uncertainty**: GDS is currently evaluating the H20 chip situation, with no shipments to China since the ban in April. Despite this, management is confident in maintaining existing commitments and expects clarity on chip supply in the coming months [3] - **Target for New Business**: GDS aims to secure 200-300 MW of new business annually over the next few years, with a target of exceeding 200 MW in 2025. The company is well-positioned with a power quota and land bank of approximately 900 MW [3][4] - **Focus on Tier-One Markets**: GDS is concentrating on tier-one markets such as Beijing, Shanghai, and Shenzhen, which are preferred for AI inference due to their proximity to users and higher barriers to entry for competitors [3] Financial Performance and Projections - **Revenue Growth Drivers**: Current revenue growth is attributed to unit growth and a decline in monthly service revenue (MSR) due to contract renewals. The pricing downtrend that began in 2021 is stabilizing, with expectations for more stable pricing in the next 1-2 years [4] - **C-REIT Listing Impact**: The successful C-REIT IPO is seen as a means for capital recycling and enhancing GDS's valuation. The company plans to shift its primary listing from the US to Hong Kong within the next 12 months [5] International Expansion - **DayOne Business Growth**: GDS's international business, DayOne, has secured approximately 800 MW of customer commitments, primarily from Southeast Asia and Finland. AI currently accounts for 10-15% of DayOne's operations, with plans for expansion into Japan and Europe [5] Investment Thesis and Valuation - **Overweight Rating**: GDS is rated as "Overweight" with a price target of $46.00, based on strong demand from tier-one customers and the potential resumption of H20 shipments [6][7] - **Risks**: Key upside risks include stronger AI demand and resolution of GPU supply uncertainties, while downside risks involve long-term GPU availability in China [8] Conclusion - GDS Holdings is positioned for growth in the data center sector, driven by AI demand and strategic market focus. The company is navigating supply chain challenges while maintaining a robust growth outlook and capitalizing on its successful C-REIT listing.