Equity Research Analyst - Long-Short

Raj S, CA, CFA

Equity Bottom-Up

<ul>
<li>Improving policy visibility on chips and geopolitics restores confidence in China’s AI infrastructure outlook.</li>
<li>Explosive AI-token growth is driving sustained hyperscaler build cycles and stronger IDC order pipelines.</li>
<li>GDS’s balanced China and DayOne portfolio supports double digit EBITDA CAGR; catalysts include new orders, C-REIT and DayOne IPO, implying 60-100% re-rating potential.</li>
</ul>


Improving policy visibility on chips and geopolitics restores confidence in China’s AI infrastructure outlook.
Explosive AI-token growth is driving sustained hyperscaler build cycles and stronger IDC order pipelines.
GDS’s balanced China and DayOne portfolio supports double digit EBITDA CAGR; catalysts include new orders, C-REIT and DayOne IPO, implying 60-100% re-rating potential.


GDS Holdings (GDS US): Best Play on China AI Infra With Chips-Geo Clarity and Hyperscaler Capex

Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

<ul>
<li>We like GDS holdings, a high-beta play on Asia data center market, on the back of strong AI and hyperscale cloud infra growth across Asia</li>
<li>GDS is a high beta play through 3 ways:  flexible capital deployment, high velocity AI growth, as well as diversification</li>
<li>We think AI growth and utilization may surprise on the upside.  Also, establishment of a C-REIT platform will enable asset recycling at a high multiple</li>
</ul>


We like GDS holdings, a high-beta play on Asia data center market, on the back of strong AI and hyperscale cloud infra growth across Asia
GDS is a high beta play through 3 ways:  flexible capital deployment, high velocity AI growth, as well as diversification
We think AI growth and utilization may surprise on the upside.  Also, establishment of a C-REIT platform will enable asset recycling at a high multiple


LONG GDS: A High-Beta Asia Digital Infrastructure DC Operator

<ul>
<li>Policy clarity and domestic GPU shift remove key overhangs; China’s AI build-out proceeding under self-reliance base case.</li>
<li>AI token usage doubling every 3–6 months makes hyperscaler capex upgrades inevitable over the coming quarters - a key catalyst driving order wins.</li>
<li>VNET’s 400 MW annual additions and REIT monetisation support 25–30% EBITDA CAGR per consensus; re-rating to 13-15x EV/ EBITDA from current 11x EV/EBITDA implies potential of 90% upside.</li>
</ul>


Policy clarity and domestic GPU shift remove key overhangs; China’s AI build-out proceeding under self-reliance base case.
AI token usage doubling every 3–6 months makes hyperscaler capex upgrades inevitable over the coming quarters - a key catalyst driving order wins.
VNET’s 400 MW annual additions and REIT monetisation support 25–30% EBITDA CAGR per consensus; re-rating to 13-15x EV/ EBITDA from current 11x EV/EBITDA implies potential of 90% upside.


VNET Group (VNET US) - Re-Rating On: Clarity on Chips, Geopolitics, and Hyperscaler Capex

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

<ul>
<li>Recent developments materially improve the setup: H200 clarity reduces a major sector overhang and removes uncertainty around chip supply, clearing the way for continued AI-infrastructure expansion in China.</li>
<li>3Q25: VNET's strong result, 2026 outlook, advantaged power resources, and shareholder priorities (no equity dilution and defined leverage limits) reduce downside bottoms-up risk while increasing confidence on execution</li>
<li>None of this is reflected in today’s valuation. With 25–30% EBITDA CAGR and improved visibility on demand and execution, VNET is positioned for a material 2026 re-rating, implying 60-100% upside.</li>
</ul>


Recent developments materially improve the setup: H200 clarity reduces a major sector overhang and removes uncertainty around chip supply, clearing the way for continued AI-infrastructure expansion in China.
3Q25: VNET's strong result, 2026 outlook, advantaged power resources, and shareholder priorities (no equity dilution and defined leverage limits) reduce downside bottoms-up risk while increasing confidence on execution
None of this is reflected in today’s valuation. With 25–30% EBITDA CAGR and improved visibility on demand and execution, VNET is positioned for a material 2026 re-rating, implying 60-100% upside.


2026 High-Conviction: VNET US - Thesis Strengthens Into 2026  (Chips, Demand, Execution)

China

GDS Holdings Limited operates as a holding company. The Company, through its subsidiaries, develops and operates data centers. GDS Holdings offers risk and security management, information technology planing, remote monitoring, cloud hosting, virtualization, disaster recovery, and remote data protection services.

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GDS Holdings (ADR) (GDS US)

GDS Holdings (GDS US): Best Play on China AI Infra With Chips-Geo Clarity and Hyperscaler Capex

GDS US offers the best bet on China AI Infra with its dual growth engine (domestic and new international) now that there is Chips and Geopolitics...

Raj S, CA, CFA

LONG GDS: A High-Beta Asia Digital Infrastructure DC Operator

We think GDS is a high beta play on Asia DC market operators, on the back of its flexible capital recyling, high velocity AI execution, as well as...

Jacob Cheng

VNET Group (VNET US) - Re-Rating On: Clarity on Chips, Geopolitics, and Hyperscaler Capex

Please check the recent upgrade note we published on VNET (link below). The thesis has only become stronger post the 3Q (execution, leverage, no...

Raj S, CA, CFA

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

2026 High-Conviction: VNET US - Thesis Strengthens Into 2026 (Chips, Demand, Execution)

VNET benefits most as H200 clarity lifts chip risk and 3Q results resolve major investor concerns. We see VNET as one of the strongest 2026E calls...

Raj S, CA, CFA

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