On June 22, GDS Holdings (09698.HK) fell 6.14% in regular trading, trading at HKD 29.88/share, with turnover of HKD 60.64 million, extending its recent downtrend.
On the news front, the company's Q1 net profit of RMB 2.652 billion was predominantly driven by one-time investment gains from DayOne equity operations, accounting for over 80% of total earnings. After stripping out non-recurring items, core business revenue growth decelerated to single digits, fueling ongoing profit quality concerns. Additionally, management reiterated a capex plan of RMB 30-50 billion over the next three years, while total liabilities stand at RMB 51.693 billion amid shrinking operating cash flow, intensifying market anxiety over near-term financial pressure.
Sector-wide weakness was evident, with peer Kingsoft Cloud declining 6.86% on the same day. Despite AI Token demand narratives previously supporting data center valuations, fundamental concerns around leverage and earnings sustainability continue to dominate sentiment for GDS Holdings.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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