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GDS Holdings Ltd. (HK:9698)
:9698
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GDS Holdings Ltd. (9698) AI Stock Analysis

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HK:9698

GDS Holdings Ltd.

(9698)

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Neutral 59 (OpenAI - Gpt-5.6Sol)
Rating:59Neutral
Price Target:
HK$36.00
▼(-14.93% Downside)
Action:Reiterated
Date:08/19/26
The score is primarily held back by weak cash flow quality (negative free cash flow and low cash conversion) and meaningful leverage, despite a strong rebound in reported profitability and rapid TTM revenue growth. Technicals are moderately positive in the near term but still below longer-term trend levels, while valuation looks reasonable on P/E but lacks dividend support.
Positive Factors
Strong Revenue Growth
Rapid TTM revenue expansion indicates stronger demand and customer adoption across GDS’s data-center platform. If capacity continues to be leased effectively, this growth can support operating scale and improve the earnings base over the next several quarters.
Negative Factors
Elevated Leverage
High debt increases financial risk and can restrict flexibility when operating conditions weaken. Interest and refinancing demands may compete with investment in new data-center capacity, limiting resilience despite improving equity and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Rapid TTM revenue expansion indicates stronger demand and customer adoption across GDS’s data-center platform. If capacity continues to be leased effectively, this growth can support operating scale and improve the earnings base over the next several quarters.
Read all positive factors

GDS Holdings Ltd. (9698) vs. iShares MSCI Hong Kong ETF (EWH)

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 strength (Score 78) shows a sharp rebound in profitability and strong TTM revenue growth, but this is offset by balance-sheet leverage (Score 56; debt-to-equity ~1.46x) and especially weak cash conversion (Cash Flow Score 38; negative TTM free cash flow and low operating cash flow coverage vs net income). Overall financial improvement is meaningful, but sustainability is constrained by leverage and negative FCF.
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.25B11.43B10.32B9.96B9.33B7.82B
Gross Profit2.98B2.59B2.22B1.92B1.94B1.78B
EBITDA5.48B4.96B4.39B1.36B4.19B3.23B
Net Income3.74B949.64M3.43B-4.29B-1.27B-1.19B
Balance Sheet
Total Assets85.77B80.03B73.65B74.45B74.81B71.63B
Cash, Cash Equivalents and Short-Term Investments14.92B14.97B7.87B7.71B8.61B9.97B
Total Debt47.37B47.54B44.46B47.99B44.68B37.79B
Total Liabilities52.54B52.28B49.98B54.32B50.63B47.10B
Stockholders Equity32.34B26.85B23.54B19.96B24.07B24.47B
Cash Flow
Free Cash Flow-785.27M-1.21B-1.03B-4.19B-4.95B-8.50B
Operating Cash Flow3.58B3.28B1.94B2.07B2.86B1.20B
Investing Cash Flow-4.70B-2.27B-8.76B-6.33B-11.27B-13.69B
Financing Cash Flow2.97B5.26B17.06B3.14B4.86B8.12B

GDS Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price42.32
Price Trends
50DMA
31.59
Negative
100DMA
34.22
Negative
200DMA
36.59
Negative
Market Momentum
MACD
-0.30
Positive
RSI
49.62
Neutral
STOCH
42.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9698, the sentiment is Neutral. The current price of 42.32 is above the 20-day moving average (MA) of 32.09, above the 50-day MA of 31.59, and above the 200-day MA of 36.59, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9698.

GDS Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$1.71B6.2415.65%19.40%162.44%
64
Neutral
HK$507.17M5.426.36%4.64%8.20%286.36%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
HK$49.98B11.5312.75%12.61%2372.26%
53
Neutral
HK$2.98B-40.31-0.96%1.86%16.16%83.77%
48
Neutral
HK$1.40B50.884.47%74.82%57.99%
45
Neutral
HK$10.37B22.742.97%1.23%3.18%-31.38%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9698
GDS Holdings Ltd.
31.52
-7.30
-18.80%
HK:0354
Chinasoft International
3.78
-2.22
-36.95%
HK:0861
Digital China Holdings
1.94
-1.29
-40.04%
HK:1075
Capinfo Co., Ltd. Class H
1.71
-1.31
-43.30%
HK:2416
Edianyun Limited
3.14
0.88
39.33%
HK:2512
Cloud Factory Technology Holdings Limited
2.77
-0.94
-25.34%

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...
GDS Shareholders Approve Full Slate of AGM Resolutions, Expand Capital-Raising Flexibility
Jun 25, 2026
GDS Holdings Limited reported that all resolutions put to shareholders at its annual general meeting on June 25, 2026, were approved, cementing continuity in its governance and capital strategy. Investors endorsed the re-election of director Gary ...
GDS Files Form S-8 for Equity Plan as It Highlights Weighted Voting Rights Structure
Jun 22, 2026
GDS Holdings Limited has notified investors in Hong Kong that it operates under a weighted voting rights structure, allowing its WVR beneficiary to exert significant influence over shareholder resolutions regardless of how other shareholders vote....
GDS Sets June 2026 AGM to Vote on Directors, Equity Plan and Capital Issuance
Jun 2, 2026
GDS Holdings Limited has called its annual general meeting for June 25, 2026, in Shanghai, where shareholders will review the company’s 2025 financial statements as presented in its annual reports. The meeting underscores the company’s...
GDS reshapes audit oversight as veteran director exits and new independent chair steps in
May 20, 2026
GDS Holdings has announced the resignation of long-serving independent director and Audit Committee Chair Lim Ah Doo, who is stepping down for personal reasons effective May 20, 2026, after an 11-year tenure marked by contributions to corporate go...
GDS Releases Unaudited First-Quarter 2026 Results and Highlights WVR Structure
May 20, 2026
GDS Holdings Limited, a Cayman Islands–incorporated data center and IT infrastructure company doing business in Hong Kong as GDS WanGuo Holdings Limited, is listed on the Nasdaq Global Market in the U.S. under the ticker GDS and operates und...
GDS Sets June 4, 2026 Record Date for AGM, Clarifies Voting Rights for Shareholders and ADS Holders
May 19, 2026
GDS Holdings Limited has set June 4, 2026, as the record date for determining the eligibility of holders of its ordinary shares and Series A and B convertible preferred shares to attend and vote at its forthcoming annual general meeting. Share tra...
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.Date of analysis: Aug 19, 2026