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GDS Holdings Ltd ADR GDS Stock Quote

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Morningstar‘s Stock Analysis GDS

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Lockdowns and Economy Affect GDS Holdings in the Short Term, but We Remain Positive; FVE Down to HKD 43

Dan Baker Senior Equity Analyst

Analyst Note

| Dan Baker |

No-moat GDS Holdings has been hit by the macro conditions in China and has mildly downgraded its 2022 guidance. However, the company has announced a new funding source and continues to expand its data center footprint both in China and the Asian region. GDS Holdings reported a decent second-quarter 2022 result in the circumstances with revenue up 24% year on year and adjusted EBITDA up 18.6% year on year. The adjusted EBITDA margin contraction to 46.0% from 48.1% a year ago is in line with management's comments and guidance at the 2021 result that 2022 margins would be reduced due to thermal coal-generated electricity price increases in China, with around 50% of its contracts not having full power cost pass-through.

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Key Statistics GDS

Company Profile GDS

Business Description

GDS Holdings started as an IT service provider in 2001 then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. It has aggressively raised capital over the past four years for expansion. Its data centers are located predominantly in and around the Tier 1 cities in China and it has also started an expansion plan into Southeast Asia. GDS listed on the NASDAQ in 2016 and completed a secondary listing in Hong Kong in 2020.

No. 999 Zhouhai Road, F4/F5, Building C, Sunland International
Shanghai, 200137, China, People's Republic of
T +86 2120292200
Industry Information Technology Services
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 1,878