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GDS Holdings Ltd.
(9698)
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Rating:53Neutral
Price Target:
HK$23.50
▼(-44.47% Downside)
Action:Reiterated
Date:10/21/26
The score is primarily constrained by weak cash flow quality (negative free cash flow and low cash conversion) and elevated leverage despite improved profitability. Technicals also weigh on the score with a clear downtrend and negative momentum. A low P/E provides some offset on valuation.
Positive Factors
Recurring Colocation Model
Multi-year colocation contracts can provide recurring revenue visibility while customers rely on mission-critical facilities and committed power capacity. This model supports durable relationships, improves planning for capacity investments, and creates opportunities to add managed services and connectivity revenue.
Negative Factors
Elevated Leverage
High debt relative to equity leaves GDS with less financial flexibility if operating conditions weaken or capital needs rise. Leverage can increase refinancing and interest burdens, constrain investment choices, and make the company more sensitive to changes in utilization, pricing, or customer demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Colocation Model
Multi-year colocation contracts can provide recurring revenue visibility while customers rely on mission-critical facilities and committed power capacity. This model supports durable relationships, improves planning for capacity investments, and creates opportunities to add managed services and connectivity revenue.
Read all positive factors
GDS Holdings Ltd. (9698) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$35.23B
Dividend YieldN/A
Average Volume (3M)4.51M
Price to Earnings (P/E)8.0
Beta (1Y)2.03
Revenue Growth12.61%
EPS Growth2372.26%
CountryHK
Employees2,434
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.34
Shares Outstanding1,559,430,500
10 Day Avg. Volume5,745,121
30 Day Avg. Volume4,513,629
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)1.71
Price to Sales (P/S)4.03
P/FCF Ratio-37.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$49.10Price Target Upside16.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.58
Revenue Forecast (FY)HK$14.93B
GDS Holdings Ltd. Business Overview & Revenue Model
Company Description
GDS Holdings Limited operates and develops data centers throughout the People's Republic of China. The company provides a range of services, including colocation offerings that supply critical facility space, customer power, racks, and cooling. Th...
How the Company Makes Money
GDS primarily makes money by providing colocation services in its data centers. Customers lease space (e.g., cabinets/cages/suites) and purchase committed power capacity, and GDS charges recurring fees for the contracted colocation footprint and p...
GDS Holdings Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.25B | 11.43B | 10.32B | 9.96B | 9.33B | 7.82B |
| Gross Profit | 2.98B | 2.59B | 2.22B | 1.92B | 1.94B | 1.78B |
| EBITDA | 5.50B | 5.07B | 4.51B | 1.36B | 4.12B | 3.23B |
| Net Income | 3.74B | 949.64M | 3.43B | -4.29B | -1.27B | -1.19B |
Balance Sheet | ||||||
| Total Assets | 85.77B | 80.03B | 73.65B | 74.45B | 74.81B | 71.63B |
| Cash, Cash Equivalents and Short-Term Investments | 14.92B | 14.97B | 7.87B | 7.71B | 8.61B | 9.97B |
| Total Debt | 47.37B | 47.54B | 44.46B | 47.99B | 44.68B | 37.79B |
| Total Liabilities | 52.54B | 52.28B | 49.98B | 54.32B | 50.63B | 47.10B |
| Stockholders Equity | 32.34B | 26.85B | 23.54B | 19.96B | 24.07B | 24.47B |
Cash Flow | ||||||
| Free Cash Flow | -785.27M | -1.21B | -1.03B | -4.19B | -4.95B | -8.50B |
| Operating Cash Flow | 3.58B | 3.28B | 1.94B | 2.07B | 2.86B | 1.20B |
| Investing Cash Flow | -4.70B | -2.27B | -8.76B | -6.33B | -11.27B | -13.69B |
| Financing Cash Flow | 2.97B | 5.26B | 17.06B | 3.14B | 4.86B | 8.12B |
GDS Holdings Ltd. Technical Analysis
Negative
42.32
Price Trends
29.46
Negative
30.42
Negative
35.77
Negative
Market Momentum
-2.34
Positive
29.98
Positive
33.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9698, the sentiment is Negative. The current price of 42.32 is above the 20-day moving average (MA) of 26.29, above the 50-day MA of 29.46, and above the 200-day MA of 35.77, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 29.98 is Positive, neither overbought nor oversold. The STOCH value of 33.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9698.
GDS Holdings Ltd. Risk Analysis
GDS Holdings Ltd. disclosed 119 risk factors in its most recent earnings report. GDS Holdings Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
If GDSH's beneficial ownership in GDSI falls below 50% or cease to have the ability to appoint the majority of the board of directors of GDSI or otherwise ceases to have the control over the management and policies of GDSI, a change of control would be triggered under certain of GDSI's real property leases, customer agreements and/or loan agreements, and the business development, financial condition and future prospects of GDSH and/or GDSI may be materially and adversely affected. Q4, 2023
2.
Our customer agreement commitments are subject to reduction, potential cancellation and non-renewal upon expiry; if renewed, the renewal may be at lower pricing terms or for a lower commitment of utilization. Q4, 2023
GDS Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | HK$504.27M | 5.47 | 6.36% | 4.56% | 8.36% | 286.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | HK$1.32B | 4.91 | 15.75% | ― | 19.40% | 162.44% | |
53 Neutral | HK$35.23B | 7.97 | 12.75% | ― | 12.61% | 2372.26% | |
53 Neutral | HK$3.25B | -40.63 | -0.96% | 1.85% | 16.16% | 83.77% | |
48 Neutral | HK$1.32B | 47.34 | 4.47% | ― | 74.82% | 57.99% | |
47 Neutral | HK$8.72B | 19.23 | 2.97% | 1.44% | 3.18% | -31.38% |
* Technology Sector Average
HK:9698
GDS Holdings Ltd.
21.98
-12.18
-35.66%
HK:0354
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3.23
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Capinfo Co., Ltd. Class H
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-35.96%
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GDS Holdings Ltd. Corporate Events
GDS Holdings Sets August Date to Release Q2 2026 Results and Host Earnings Call
Jul 30, 2026
GDS Holdings Limited has scheduled a board meeting for August 12, 2026, in Hong Kong to approve its unaudited financial results for the second quarter ended June 30, 2026. The company plans to publish these results after Hong Kong trading hours an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.