Daiwa: GDS Holdings Limited-SW (09698.HK) sales target doubling, maintaining "Buy" rating, target price HKD 47.

According to the Zhitong Finance APP, Daiwa published a research report stating that the performance of GDS Holdings Limited (09698.HK) in the second quarter was stable. The management has increased the sales target for 2026 from 500 megawatts to 1 gigawatt and expects the order backlog to reach approximately 1.2 gigawatts by the end of 2026, along with a clear delivery schedule providing strong visibility for performance before 2028. Daiwa has raised its EBITDA forecast for 2026 to 2027 by 11% to 49% to reflect strong demand and delivery progress. The target price remains at HKD 47, based on a 13 times valuation of the average projected EBITDA for GDS's China operations for 2026 to 2027, as well as the valuation considering its approximately 20% stake in DayOne, maintaining a "buy" rating.