HK Stock Market Move | GDS-SW(09698) rose by nearly 3%, and DeepSeek is expected to strengthen AI applications on the client side. Institutions are optimistic about the valuation increase of the domestic IDC business.

GDS-SW (09698) rose nearly 3%, to 2.69% at the time of publication, at 26.7 Hong Kong dollars, with a trading volume of 33.0491 million Hong Kong dollars. Huatai released a research report stating that under the leadership of DeepSeek, the depth and breadth of AI application promotion is expected to further strengthen, with applications becoming more prosperous, driving strong growth in traffic and inference computing power demand. In this context, the domestic stock data center vacancy rate is expected to further decrease, and the supply-demand structure is expected to improve. As a leading third-party data center enterprise in China, GDS-SW has abundant cabinet resources in core regions. The bank is optimistic about the company's subsequent valuation increase and performance improvement opportunities in the domestic IDC business. The bank believes that considering the positive changes brought to the industry by recent breakthroughs in domestic AI applications led by DeepSeek, it is optimistic about the valuation increase of the domestic IDC business. The bank has raised Wanguo Data's target EV/EBITDA multiple for 2025 from 13 times to 15 times, corresponding to a target price increase from 26.4 yuan to 34.66 yuan, maintaining a "buy" rating.