HK Stock Market Move | GDS-SW(09698) rose nearly 4%, with company's customer entry accelerating in the third quarter. Institutions are optimistic that AI demand will drive strong growth in orders next year.

GDS-SW (09698) rose nearly 4%, rising to 4.65% at the time of publication, reaching HK $22.52, with a turnover of HK $2196.74 million. In terms of news, recently, GDS-SW released its third-quarter performance for 2025. The group achieved a net income of RMB 2.887 billion, a year-on-year increase of 10.2%; a net profit of 729 million yuan, a year-on-year turnaround from losses to profits; and an adjusted EBITDA of 1.342 billion yuan, a year-on-year increase of 11.4%. Mr. Huang Wei, Chairman and CEO of GDS Data, stated: "In the third quarter of 2025, the company continued to deliver backlogged orders and achieved a high migration rate. The company is fully prepared strategically to seize the growing demand in the field of artificial intelligence and will consider artificial intelligence as an important catalyst for long-term business growth." Bank of America Securities pointed out that the GDS-SW management revealed at the performance conference that driven by the delivery of super-large orders, the customer onboarding in the third quarter accelerated, with internal growth totaling 23,000 square meters. It is expected that the fourth quarter will maintain a similar level. The company currently expects service revenue per square meter to decrease by 3% to 4% annually in the 2026 fiscal year, mainly due to the downward adjustment of contract renewal pricing and the dilutive effect of new orders. However, the bank pointed out that considering the decline in data center construction costs, the expected internal rate of return for new projects remains resilient, and is optimistic that AI demand will drive strong growth in orders in 2026.