GDS-SW (09698) shares surged 5.79% in intraday trading, as the company reported impressive third-quarter results and reaffirmed its full-year guidance. The stock's strong performance comes on the heels of a turnaround to profitability and strategic positioning in the growing artificial intelligence (AI) sector.
The data center operator posted net revenue of RMB 2.887 billion for Q3, marking a 10.2% year-over-year increase. In a significant turnaround, GDS-SW reported a net profit of RMB 729 million, compared to a loss in the same period last year. The company's adjusted EBITDA also showed robust growth, rising 11.4% year-over-year to RMB 1.342 billion.
Investors were particularly encouraged by GDS-SW's maintained full-year 2025 revenue guidance of RMB 11.29–11.59 billion and projected adjusted EBITDA between RMB 5.19–5.39 billion. The company's Chairman and CEO, William Huang, highlighted their strategic positioning to capture the growing demand in AI, viewing it as a key long-term growth catalyst. This focus on AI, coupled with disciplined strategy execution and high occupancy rates, has bolstered investor confidence in GDS-SW's future prospects, contributing to the stock's significant rise.
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