CITIC Securities released a research report stating that following the completion of GDS-SW's (09698) first C-REIT transaction, its asset-light and asset-heavy integrated model is expected to form a closed loop next year, enhancing overall operational and financing efficiency. Management has also signaled more aggressive domestic resource acquisition, coupled with improved commitment and utilization rates of projects under construction, which should drive sustained profitability improvements.

The firm set a target price of $50 per ADS for GDS's U.S. shares, equivalent to HK$50 per share for its Hong Kong-listed stock, maintaining a "Buy" rating on both listings and expressing confidence in the company's medium-to-long-term investment value.

In Q3 2025, GDS reported revenue of RMB 2.887 billion, with adjusted EBITDA reaching RMB 1.342 billion. Gross margin expansion led to notable profitability growth, driven by higher utilization rates at mature projects and cost optimization. The company's cash reserves stood at RMB 13.444 billion, with RMB 2.248 billion net inflow from the C-REIT transaction significantly boosting liquidity. Over RMB 5 billion in new financing was secured during the quarter, stabilizing debt structure and supporting continued expansion.

Domestic demand momentum remained strong, with stable capacity utilization and commitment rates. While new resource additions faced short-term pressure, structural optimization progressed. The DayOne business showed improved EBITDA margins, with capacity and order fulfillment on track. GDS maintained its full-year revenue and EBITDA guidance, with capital expenditure guidance unchanged at RMB 2.7 billion due to favorable financing conditions, ensuring stable financial flexibility.