GDS Holdings (GDS US) (Buy) - Solid domestic order intake momentum...

Research evidence excerpt

GDS Holdings (GDS US) (Buy) - Solid domestic order intake momentum...

Global Markets Research

GDS Holdings GDS.OQ GDS US 12 June 2026

EQUITY: TECHNOLOGY

RatingSolid domestic order intake momentum... Remains Buy

Target price... while EBITDA growth likely muted until 2H27F, Reduced from USD 48.40maintain Buy but cut TP to USD48.4 USD 60.40

Maintain Buy, TP cut to USD48.4, implying 43% upside Closing11 June price2026 USD 33.76

In 1Q26, GDS reported 7.9% y-y or 0.6% q-q revenue growth to CNY2.94bn, and 8.0% y-

y or 4.7% q-q growth in adjusted EBITDA to CNY1.43bn, after excluding one-off items. Implied upside +43.4%

We expect the company to continue to benefit from robust AI spending in China, while we

see near-term pressure on EBITDA growth, constrained by domestic chip capacity ramp- Market Cap (USD mn) 6,456.6

up. We cut our FY26-28F forecasts for adjusted EBITDA by 3.5-9.8% to reflect muted ADT (USD mn) 80.1

customer move-in until meaningful acceleration in 2H27F. We maintain our Buy rating and

cut our TP to USD48.4, still based on an SoTP valuation. Our TP assumes 13x Relative performance chart

(previously 14x) FY27F EV/EBITDA for the domestic business, 25x (previously 20x)

FY27F EV/EBITDA for DayOne (unlisted) and the current market cap for C-REIT. The

company currently trades at 14x FY27F EV/EBITDA.

Ambition to regain domestic market share with new land and power reservation

We expect GDS to become more proactive in securing contracts from key CSP customers in

the domestic market, evidenced by its three-year target to add new power commitment of 500-

800MW annually. GDS signed a strategic collaboration with the Ulanqab municipal

government in June 2026, planning to invest over CNY30bn in the city for data center campus