Overview
VNET Q2 revenue rises 22.1% yr/yr, driven by 112.5% wholesale IDC growth
Adjusted EBITDA increases 27.7% yr/yr, margin improves to 30.1%
Co reports net loss due to higher interest and tax expenses
Outlook
Company expects 2025 revenue between RMB9,150 mln and RMB9,350 mln, up 11% to 13% YoY
VNET forecasts 2025 adjusted EBITDA of RMB2,760 mln to RMB2,820 mln
Company aims to expand data center capacity to 10GW by 2036
Result Drivers
WHOLESALE IDC GROWTH - Wholesale IDC business revenue grew by 112.5% yr/yr, driven by a 101MW increase in wholesale capacity in service
RETAIL ORDERS - Secured around 4MW in retail orders during the qtr, maintaining retail revenues at RMB958.7 mln
HYPERSCALE 2.0 - Co launched Hyperscale 2.0 framework to expand data center capacity to 10GW by 2036, aiming for greener, intelligent data centers
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | RMB 2.43 bln | ||
Q2 Net Income | -RMB 11.90 mln | ||
Q2 Adjusted EBITDA | RMB 732.50 mln | ||
Q2 Adjusted EBITDA Margin | 30.1% | ||
Q2 Gross Profit | RMB 547.70 mln | ||
Q2 Operating Expenses | RMB 374.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for VNET Group Inc is $12.20, about 34.6% above its August 20 closing price of $7.98
The stock recently traded at 260 times the next 12-month earnings vs. a P/E of 1,137 three months ago
Press Release: ID:nPn4D1VwDa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)