GDS-SW (09698) rose nearly 4%, reaching HK$22.52 by the time of writing, with a trading volume of HK$219.674 million. The company recently released its Q3 2025 financial results, reporting net revenue of RMB 2.887 billion, up 10.2% year-over-year, and a net profit of RMB 729 million, turning around from a loss in the same period last year. Adjusted EBITDA stood at RMB 1.342 billion, an 11.4% increase year-over-year.

Huang Wei, Chairman and CEO of GDS-SW, stated, "In Q3 2025, the company continued to fulfill backlog orders and achieved a high occupancy rate. We are strategically well-positioned to capture the growing demand in AI, which we view as a key long-term growth catalyst."

Bank of America Securities noted that GDS-SW management highlighted during the earnings call that customer occupancy accelerated in Q3, driven by hyperscale order deliveries, with organic growth covering 23,000 square meters. A similar level is expected in Q4.

The company anticipates a 3%–4% year-over-year decline in per-square-meter service revenue for FY2026, mainly due to lower contract renewal pricing and dilution effects from new orders. However, factoring in reduced data center construction costs, the internal rate of return for new projects remains resilient. The bank remains optimistic that AI demand will drive robust order growth in 2026.