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GDS Holdings Ltd.
(9698)
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Rating:56Neutral
Price Target:
HK$30.00
▼(-29.11% Downside)
Action:Reiterated
Date:05/24/26
The score is driven mainly by improving reported profitability and accelerating TTM revenue growth, but is meaningfully constrained by persistently negative free cash flow and elevated leverage. Technicals are weak with the price below major moving averages, while a low P/E provides valuation support.
Positive Factors
Recurring colocation model & hyperscaler customers
GDS's core colocation business sells recurring capacity, power and connectivity to hyperscalers and large enterprises. Long-term service agreements and usage-based power charges create stable, multi-year revenue streams and high customer switching costs, supporting durable demand and predictable capacity planning as cloud adoption grows.
Negative Factors
Persistent negative free cash flow
Despite positive operating cash flow, FCF is consistently negative due to heavy capex needs to commission new capacity. This means the company cannot yet self-fund growth and relies on external financing or equity, making long-term expansion and deleveraging dependent on access to capital and disciplined capex cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring colocation model & hyperscaler customers
GDS's core colocation business sells recurring capacity, power and connectivity to hyperscalers and large enterprises. Long-term service agreements and usage-based power charges create stable, multi-year revenue streams and high customer switching costs, supporting durable demand and predictable capacity planning as cloud adoption grows.
Read all positive factors
GDS Holdings Ltd. (9698) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$49.15B
Dividend YieldN/A
Average Volume (3M)10.96M
Price to Earnings (P/E)15.0
Beta (1Y)1.64
Revenue Growth9.83%
EPS GrowthN/A
CountryHK
Employees2,434
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.77
Shares Outstanding1,559,430,500
10 Day Avg. Volume9,067,041
30 Day Avg. Volume10,961,922
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)1.71
Price to Sales (P/S)4.03
P/FCF Ratio-37.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$58.15Price Target Upside37.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.74
Revenue Forecast (FY)HK$14.60B
GDS Holdings Ltd. Business Overview & Revenue Model
Company Description
GDS Holdings Limited operates and develops data centers throughout the People's Republic of China. The company provides a range of services, including colocation offerings that supply critical facility space, customer power, racks, and cooling. Th...
How the Company Makes Money
GDS primarily makes money by selling data center capacity and services to customers under service agreements. Key revenue streams typically include: (1) Colocation services—recurring fees for providing space (cabinets/cages/suites) within GDS faci...
GDS Holdings Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.08B | 11.43B | 10.32B | 9.96B | 9.33B | 7.82B |
| Gross Profit | 3.07B | 2.59B | 2.22B | 1.92B | 1.94B | 1.78B |
| EBITDA | 5.48B | 4.96B | 4.39B | 1.36B | 4.19B | 3.23B |
| Net Income | 2.84B | 949.64M | 3.43B | -4.29B | -1.27B | -1.19B |
Balance Sheet | ||||||
| Total Assets | 83.85B | 80.03B | 73.65B | 74.45B | 74.81B | 71.63B |
| Cash, Cash Equivalents and Short-Term Investments | 14.77B | 14.97B | 7.87B | 7.71B | 8.61B | 9.97B |
| Total Debt | 47.03B | 47.54B | 44.46B | 47.99B | 44.68B | 37.79B |
| Total Liabilities | 51.69B | 52.28B | 49.98B | 54.32B | 50.63B | 47.10B |
| Stockholders Equity | 31.44B | 26.85B | 23.54B | 19.96B | 24.07B | 24.47B |
Cash Flow | ||||||
| Free Cash Flow | -1.34B | -1.21B | -1.03B | -4.19B | -4.95B | -8.50B |
| Operating Cash Flow | 3.03B | 3.28B | 1.94B | 2.07B | 2.86B | 1.20B |
| Investing Cash Flow | -3.49B | -2.27B | -8.76B | -6.33B | -11.27B | -13.69B |
| Financing Cash Flow | 7.78B | 5.26B | 17.06B | 3.14B | 4.86B | 8.12B |
GDS Holdings Ltd. Technical Analysis
Negative
42.32
Price Trends
34.33
Negative
38.01
Negative
37.26
Negative
Market Momentum
-0.48
Negative
45.11
Neutral
54.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9698, the sentiment is Negative. The current price of 42.32 is above the 20-day moving average (MA) of 30.53, above the 50-day MA of 34.33, and above the 200-day MA of 37.26, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 54.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9698.
GDS Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$495.57M | 3.42 | 1.74% | 2.52% | 13.62% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | HK$1.76B | 11.63 | 9.88% | ― | 10.65% | 120.39% | |
56 Neutral | HK$49.15B | 14.99 | 10.18% | ― | 9.83% | ― | |
49 Neutral | HK$3.04B | 77.12 | -4.20% | 2.65% | 26.48% | ― | |
48 Neutral | HK$1.49B | 100.13 | 2.55% | ― | 33.54% | -4.91% | |
45 Neutral | HK$8.00B | 19.36 | 2.73% | 1.06% | 0.47% | -36.22% |
* Technology Sector Average
HK:9698
GDS Holdings Ltd.
30.66
-4.84
-13.63%
HK:0354
Chinasoft International
2.96
-2.51
-45.90%
HK:0861
Digital China Holdings
1.82
-1.22
-40.13%
HK:1075
Capinfo Co., Ltd. Class H
1.71
-0.35
-17.07%
HK:2416
Edianyun Limited
3.31
1.11
50.45%
HK:2512
Cloud Factory Technology Holdings Limited
2.95
-1.65
-35.87%
GDS Holdings Ltd. Corporate Events
GDS Shareholders Approve Full Slate of AGM Resolutions, Expand Capital-Raising Flexibility
Jun 25, 2026
GDS Holdings Limited reported that all resolutions put to shareholders at its annual general meeting on June 25, 2026, were approved, cementing continuity in its governance and capital strategy. Investors endorsed the re-election of director Gary ...
GDS Files Form S-8 for Equity Plan as It Highlights Weighted Voting Rights Structure
Jun 22, 2026
GDS Holdings Limited has notified investors in Hong Kong that it operates under a weighted voting rights structure, allowing its WVR beneficiary to exert significant influence over shareholder resolutions regardless of how other shareholders vote....
GDS Sets June 2026 AGM to Vote on Directors, Equity Plan and Capital Issuance
Jun 2, 2026
GDS Holdings Limited has called its annual general meeting for June 25, 2026, in Shanghai, where shareholders will review the company’s 2025 financial statements as presented in its annual reports. The meeting underscores the company’s...
GDS reshapes audit oversight as veteran director exits and new independent chair steps in
May 20, 2026
GDS Holdings has announced the resignation of long-serving independent director and Audit Committee Chair Lim Ah Doo, who is stepping down for personal reasons effective May 20, 2026, after an 11-year tenure marked by contributions to corporate go...
GDS Releases Unaudited First-Quarter 2026 Results and Highlights WVR Structure
May 20, 2026
GDS Holdings Limited, a Cayman Islands–incorporated data center and IT infrastructure company doing business in Hong Kong as GDS WanGuo Holdings Limited, is listed on the Nasdaq Global Market in the U.S. under the ticker GDS and operates und...
GDS Sets June 4, 2026 Record Date for AGM, Clarifies Voting Rights for Shareholders and ADS Holders
May 19, 2026
GDS Holdings Limited has set June 4, 2026, as the record date for determining the eligibility of holders of its ordinary shares and Series A and B convertible preferred shares to attend and vote at its forthcoming annual general meeting. Share tra...
GDS Holdings Sets Board Meeting and Earnings Call for First-Quarter 2026 Results
May 6, 2026
GDS Holdings Limited announced that its board of directors will meet on May 19, 2026, in Hong Kong to approve the company’s unaudited financial results for the first quarter ended March 31, 2026. The company plans to release these results af...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.