HK Stock Market Move | GDS-SW(09698) opened high by nearly 5%. Goldman Sachs believes that the rising demand cycle will create valuation upside for it.

GDS-SW(09698) opened high by nearly 5%. As of the time of reporting, it is up 4.80%, trading at 17.04 Hong Kong dollars, with a turnover of 797,500 Hong Kong dollars. Goldman Sachs released a research report stating that they have upgraded GDS-SW to a "buy" rating with a target price raised to 23.4 Hong Kong dollars. Recent observations show signs of demand recovery in the second quarter performance of Chinese IDC (Internet Data Center) operators. With the push from Gen-AI and GPU-related capital expenditures, IDC operators in China, mainly engaged in wholesale business, are entering a period of rising demand. These capital expenditures come from cloud super large enterprises, top Internet companies, and AI startups. The bank stated that the company is still their top pick in the industry and believes that the company's positioning can best capture the aforementioned rise in demand, and that the rising demand cycle will create valuation upside. Nomura released a research report pointing out that while GDS-SW is seeking deleveraging in the Chinese market, both supply and demand in the Southeast Asian market are facing more opportunities. For the Southeast Asian market business, GDS-SW currently has a capacity of about 800MW, with 700MW in Johor state, and has already sold about 400MW.