Goldman Sachs: Maintains a "buy" rating on GDS-SW (09698) with a target price of 38.30 Hong Kong dollars.

Goldman Sachs released a research report stating that the first public Real Estate Investment Trust (REIT) fund of GDS-SW (09698) was approved by the China Securities Regulatory Commission on March 26th, after previously receiving approval from the National Development and Reform Commission. According to the prospectus of the REIT fund, the estimated pre-tax interest depreciation and amortization profit in 2025 is 139 million RMB, with an enterprise value of 2.195 billion RMB, implying a multiple of 15.8 times for the enterprise value/pre-tax interest depreciation and amortization profit in 2025. In comparison, based on current market value, the enterprise value/pre-tax interest depreciation and amortization profit multiple for GDS China's business in 2025 is approximately 11 times. The company expects the distribution yield of the REIT in 2025 to be 5.5%, with a 12-month target price of 38.30 Hong Kong dollars. In addition, on March 26-27, the bank held online and offline meetings with GDS's CFO, IR Director, and investors. Key points from the meetings include: 1. Positive trends in demand for artificial intelligence, public cloud, and internet sectors; 2. The company has a development potential of 900 megawatts in first-tier cities, with power indicators and land to meet the demand for artificial intelligence reasoning; 3. Progress in asset securitization, including Asset-Backed Securities (ABS) and C-REIT; 4. Orders, occupancy, competitive advantages, and financing prospects for Daiyun New Energy.