Movement Alert｜GDS-SW Falls 13.47% in Regular Trading, Daiwa Cut Target Price to 50 Hong Kong Dollars

Market Focus10-20

On October 20, GDS-SW fell 13.47% in Regular Trading, trading at 21.42 Hong Kong dollars, with turnover of 16.4629 million Hong Kong dollars.

The clearest recent catalyst is a broker action: Daiwa lowered its target price for GDS-SW to 50 Hong Kong dollars from 54 Hong Kong dollars while reiterating a buy rating, and also reduced its 2027 to 2028 revenue forecasts by 5% to 9% and adjusted EBITDA forecasts by 4% to 10%, citing weaker unit economics and a slower revenue conversion path from AI-related bookings.

That more cautious medium-term view came despite solid reported interim results. For the first half, revenue was 6.455 billion yuan, while second-quarter revenue rose 6.5% to 3.088 billion yuan. However, adjusted EBITDA margin narrowed to 45.5% from 47.3%, and gross margin declined to 21.5% from 23.8%, reinforcing investor concern that AI infrastructure demand may take longer to translate into earnings.

The company develops and operates high-performance data centers and provides colocation, managed hosting, managed cloud, and related services.

(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.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment