Yamato: Maintain "buy" rating on GDS-SW (09698) and raise target price to HK$46.

Daiwa has issued a research report stating that it maintains a "buy" rating on GDS-SW (09698) with a target price raised from 39 Hong Kong dollars to 46 Hong Kong dollars. The bank pointed out that the imminent listing of the Wanguo Data Real Estate Investment Trust Fund (REIT) will accelerate its deleveraging and the establishment of new financing channels by injecting mature assets into the REIT, believing that the company is currently in the early stage of high-speed growth. Daiwa stated that channel research shows that GDS-SW obtained an order of about 140 megawatts of the Langfang data center from BABA-W (09988) in the first quarter of this year, with new orders accounting for about 15% of the capacity already used by Wanguo Data, reflecting the growing demand for inferential computing in core cities, and expected to drive revenue growth beyond expectations by 2026. The bank is confident that with increasing investment in cloud computing by various enterprises, Wanguo Data has the opportunity to obtain more new orders from other Internet companies and seize the industry's demand growth trend in the next two years.