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

Thematic (Sector/Industry)

<ul>
<li>Both GDS and VNET declined more than 70% from all time high.   We think both stocks are over-penalized by market from top-down macro-economic reasons and geo-political tensions</li>
<li>We think there is a dis-connect between the share price and solid company fundamentals.   The explosive growth in demand for AI and Cloud computing infrastructure remains strong</li>
<li>GDS is a mature, blue-chip name that offers sustainable profitability while on de-leveraging.  VNET is a high-growth, high-risk turnaround play with its wholesale offering higher short-term upside</li>
</ul>


Both GDS and VNET declined more than 70% from all time high.   We think both stocks are over-penalized by market from top-down macro-economic reasons and geo-political tensions
We think there is a dis-connect between the share price and solid company fundamentals.   The explosive growth in demand for AI and Cloud computing infrastructure remains strong
GDS is a mature, blue-chip name that offers sustainable profitability while on de-leveraging.  VNET is a high-growth, high-risk turnaround play with its wholesale offering higher short-term upside


GDS and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>Mainland investors continue their record southbound purchases during 2024 and into 2025. </li>
<li>
<a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> , <a href="https://www.smartkarma.com/entities/gds-holdings-adr" target="_blank" data-smartkarma-citation="entities:23649:1" rel="noopener">GDS Holdings (ADR) (GDS US)</a> had a break out from its triangle formation in its continuation pattern.  The company may list its China REIT assets.
</li>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> had a symmetrical pattern breakdown after the announcement that the US pentagon had placed the company on its blacklist.  The company began a large share buyback.
</li>
</ul>


Mainland investors continue their record southbound purchases during 2024 and into 2025. 

GDS Holdings (9698 HK) , GDS Holdings (ADR) (GDS US) had a break out from its triangle formation in its continuation pattern.  The company may list its China REIT assets.


Tencent (700 HK) had a symmetrical pattern breakdown after the announcement that the US pentagon had placed the company on its blacklist.  The company began a large share buyback.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (January 6)

<ul>
<li>GDS is the leader in China’s data center market.  GDS is well positioned to capture growing demand from generative AI cloud growth</li>
<li>GDS consists of GDSH (China) and GDSI (international), both businesses are delivering growth and operational excellence</li>
<li>GDS US share price has rallied 100% YTD, we believe there is further room to grow due to capital flows and attractive valuation</li>
</ul>


GDS is the leader in China’s data center market.  GDS is well positioned to capture growing demand from generative AI cloud growth
GDS consists of GDSH (China) and GDSI (international), both businesses are delivering growth and operational excellence
GDS US share price has rallied 100% YTD, we believe there is further room to grow due to capital flows and attractive valuation


GDS: The Leading Data Center Provider in China, Riding the AI Mega Trend – BUY

<ul>
<li>Hong Kong's unusual trading channel pattern may be coming to an end and short selling declines.</li>
<li><a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> broke a falling triangle pattern and now trades above near term support levels.  The company's dual listing announcement and large buyback program are near-term positives.</li>
<li>
<a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> has broken out of its rounding bottom pattern with a positive earnings announcement.  <a href="https://www.smartkarma.com/entities/china-ruyi-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3296:1" rel="noopener">China Ruyi Holdings (136 HK)</a> has broken out from its triangle pattern.
</li>
</ul>


Hong Kong's unusual trading channel pattern may be coming to an end and short selling declines.
Alibaba Group Holding (9988 HK) broke a falling triangle pattern and now trades above near term support levels.  The company's dual listing announcement and large buyback program are near-term positives.

GDS Holdings (9698 HK) has broken out of its rounding bottom pattern with a positive earnings announcement.  China Ruyi Holdings (136 HK) has broken out from its triangle pattern.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 24)

<ul>
<li>Hong Kong market is range bound with conglomerates showing strength over the last few weeks.  As the CNY/HKD strengthens the A/H premium should narrow.</li>
<li>
<a href="https://www.smartkarma.com/entities/sunevision-holdings-ltd" target="_blank" data-smartkarma-citation="entities:110:1" rel="noopener">SUNeVision Holdings (1686 HK)</a> reported good results on the back of increased demand driven by the AI sector. 
</li>
<li>
<a href="https://www.smartkarma.com/entities/yum-china-holdings-inc-0533692c-6dae-4014-baa1-ed0b050638f2" target="_blank" data-smartkarma-citation="entities:29259:1" rel="noopener">Yum China Holdings (9987 HK)</a>,<a href="https://www.smartkarma.com/entities/yum-china-holdings-inc" target="_blank" data-smartkarma-citation="entities:23677:1" rel="noopener">Yum China Holdings (YUMC US)</a> reported flat sales and an increase in operating profit in a difficult fast food retail environment in China.
</li>
</ul>


Hong Kong market is range bound with conglomerates showing strength over the last few weeks.  As the CNY/HKD strengthens the A/H premium should narrow.

SUNeVision Holdings (1686 HK) reported good results on the back of increased demand driven by the AI sector. 


Yum China Holdings (9987 HK),Yum China Holdings (YUMC US) reported flat sales and an increase in operating profit in a difficult fast food retail environment in China.



BUY/SELL/HOLD: Hong Kong Stock Updates (September 12)

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 and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

Both GDS and VNET has declined >70% from all time high, providing a golden entry oppportunity. GDS is a mature blue-chip play offering...

Jacob Cheng

Technically Speaking, Breakouts and Breakdowns: HONG KONG (January 6)

Mainland investors purchased a record amount of HK shares during 2024. GDS Holding announced that it may list its China assets in a REIT. Tencent...

David Mudd

GDS: The Leading Data Center Provider in China, Riding the AI Mega Trend – BUY

GDS is the leading data center service provider in China. The company is positioned to capture strong demand from AI mega trends. The stock was...

Jacob Cheng

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 24)

GDS continues to rally after its breakout from its 2 year downtrend. Huatai maintained a BUY on the stock and raised its target price to HK$27.49...

David Mudd

BUY/SELL/HOLD: Hong Kong Stock Updates (September 12)

Hong market should benefit from a stronger CNY/HKD as the Fed begins to cut rates. SUNeVision is benefiting from increased demand from the AI...

David Mudd

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