Bocom Intl released a research report stating that the target price of GDS Holdings-SW (09698) has been raised to 22.88 Hong Kong dollars, maintaining a 'buy' rating. Due to the company's third-quarter performance meeting expectations and the acceleration of its expansion in overseas markets, the valuation given is closer to that of international peers.
Bocom Intl pointed out that the company's revenue in the third quarter of 2024 is approximately 2.966 billion yuan (the same below), an increase of 17.7% year-on-year, with adjusted EBITDA reaching 1.295 billion yuan, a 15% increase year-on-year. The company maintains its full-year performance guidance unchanged, with expected annual revenue between 11.34 billion and 11.76 billion yuan, and adjusted EBITDA between 4.95 billion and 5.15 billion yuan. The company adjusted its full-year 2024 capital expenditure guidance, increasing it from the previous 6.5 billion yuan to 11 billion yuan (China/International business 3/8 billion yuan), in order to support the accelerated entry of Chinese tenants and expedite the expansion of international business.
Revenue from the china business in the third quarter was 2.62 billion yuan, a year-on-year increase of 6.1%, with adjusted EBITDA at 1.205 billion yuan, a year-on-year increase of 3.6%. The newly added usable area in the third quarter was 25,647 square meters, significantly accelerating compared to 20,265 square meters in the second quarter. In the third quarter, the international business signed a large sales contract on Batam Island, with a contract/reserve capacity of 34/38MW, and is expected to enter within 18 months. It was also announced that tens of billions of yuan are being invested in Thailand to acquire land for data center parks in Chonburi Province, with planned electrical capacity of 120MW.