GDS Holdings Ltd

GDS Holdings Ltd (NASDAQ: GDS) is a holding company mainly engaged in the development and operation of high-performance data centers. 

Recommendation Rationale – Sell at USD 29.69 

• The cost of revenue in Q1 FY 2025 stood at RMB2,078.3 Mn (US$286.4 Mn), reflecting an 8.8% increase over the same period of the last year of RMB1,911.0 Mn. This rise was in line with the continued ramp-up of the data centers.
• The selling and marketing expenses, excluding the share-based compensation expenses, amounted to RMB26.2 Mn (US$3.6 million) in Q1 FY 2025. This reflects an increase of 12.2% over the same period last year of RMB23.4 Mn. The rise was mainly because of increased personnel costs related to sales.
• The company is exposed to risks such as changes in laws, regulations as well as regulatory environment impacting its business operations. Furthermore, the power outages, and fluctuations in general economic and business conditions can impact the business.

GDS’ Daily Price Chart

Fundamental Valuation

Considering the increasing volatility over global equity market, inflationary pressures, geopolitical tensions, etc. the company’s stock might trade at slight discount. Given its current trading levels, and risks associated, it is prudent to book profit at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the closing price of USD 29.69 per share, up by 3.34% as on 26 June 2025

GDS Holdings Ltd (NASDAQ: GDS) is part of Kalkine’s Global Big Money Report. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 26 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.  

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest. 

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.