Daiwa cuts target for GDS stock from HKD 54 to HKD 50

Published on 10/05/2026 at 01:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Second-quarter revenue rose 6.5 percent to RMB 3.088 billion. GDS stock stands at a USD 5.4 billion market value as of October 2, 2026.

GDS, KYG3902L1095, Illustration mit AI erstellt.

GDS Holdings (ISIN KYG3902L1095) drew a lower HKD 50 target from Daiwa, down from HKD 54 in the October 2, 2026 research report published by ET Net. The revision keeps artificial intelligence infrastructure demand central to the investment case while highlighting slower revenue recognition from new construction projects.

Daiwa sees demand and timing split

According to ET Net, Daiwa said GDS secured 471 megawatts of new orders in the first half of 2026 and raised its full-year target to 1 gigawatt. Backlog orders reached 757 megawatts as of June 2026, compared with 450 megawatts at the end of 2025, a gain of 307 megawatts.

The same report states that billable power additions are expected to reach 230 megawatts in 2026, 700 megawatts in 2027 and 900 megawatts in 2028. The timing matters because most revenue contributions from these projects are expected from the second half of 2027, while customer migration and construction remain intermediate steps.

Second-quarter profit turns positive

GDS reported second-quarter 2026 net revenue of RMB 3.088 billion, an increase of 6.5 percent from the same quarter of 2025, according to the interim-report summary published by Moomoo. Net profit reached RMB 838 million, compared with a net loss of RMB 70.6 million in the year-earlier quarter, while adjusted EBITDA rose 2.5 percent to RMB 1.406 billion.

Management raised full-year 2026 revenue guidance from RMB 12.7 billion to RMB 12.9 billion to a range of RMB 12.7 billion to RMB 13.0 billion. Adjusted EBITDA guidance moved from RMB 5.75 billion to RMB 6.0 billion to RMB 5.9 billion to RMB 6.1 billion, according to GDS Holdings.

Market value and operating scale

GDS had a market capitalization of USD 5.4 billion and a 52-week range of USD 26.97 to USD 48.61 as of October 2, 2026. The company operates carrier-neutral data centers and provides colocation, managed data center, interconnection and cloud connectivity services, according to MarketBeat.

The main counter-factor is execution timing. Daiwa lowered its fiscal 2027 and fiscal 2028 revenue forecasts by 5 percent to 9 percent and its adjusted EBITDA forecasts by 4 percent to 10 percent, citing slower unit economics and delayed customer migration, according to ET Net.

GDS stock enters October with defined milestones

The October 2, 2026 target cut contrasts with GDS revenue guidance of RMB 12.7 billion to RMB 13.0 billion for fiscal 2026 and a backlog of 757 megawatts as of June 2026. For investors, the central issue is the conversion of signed capacity into billable power and reported revenue.