---
title: "Daiwa: GDS-SW  Doubles Sales Target, Maintains Buy TP at HKD47"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296053650.md"
description: "Daiwa maintains a Buy rating and HKD47 target price for GDS-SWafter solid Q2 results. Management doubled the 2026 sales target to 1GW, with backlog expected to reach 1.2GW by year-end. Revenue rose 7% YoY to RMB3.1bn, while adjusted EBITDA increased 3% to RMB1.4bn. Daiwa raised 2026-2027 EBITDA forecasts by up to 49%, citing strong demand and clear delivery visibility through 2028."
datetime: "2026-08-17T04:01:55.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296053650.md)
  - [en](https://longbridge.com/en/news/296053650.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296053650.md)
generator: "portal-rs"
---

# Daiwa: GDS-SW  Doubles Sales Target, Maintains Buy TP at HKD47

Daiwa published a research report stating that GDS-SW (09698.HK) +0.540 (+1.577%) Short selling $66.15M; Ratio 18.381% 's 2Q results were solid. Management doubled its 2026 sales target from 500 megawatts to 1 gigawatt, and expected backlog orders to reach about 1.2 gigawatts by the end of 2026. Together with a clear delivery timetable, this provides strong earnings visibility through 2028.

The report noted that GDS-SW's 2Q revenue rose 7% YoY to RMB3.1 billion, while adjusted EBITDA increased 3% YoY to RMB1.4 billion. Margin was 45.5%, with the YoY decline mainly due to higher utility costs. Operating metrics were stronger than expected, with net delivered area reaching 21,307 square meters and utilization rate rising to 79.2%. New order bookings in 1H reached a record 471 megawatts, exceeding the full-year 2025 level of 317 megawatts, mainly driven by three major customers.

Daiwa said management expected 2027 delivery volume to exceed the 2026 level by 3x, estimating deliveries of about 700 megawatts and 950 megawatts in 2027 and 2028 respectively. As most recently signed orders are greenfield projects with delivery cycles extending to four quarters, 2027 will mainly be a deployment year, with earnings contributions expected to materialize in 2028.

Daiwa raised its 2026-2027 EBITDA forecasts by 11% to 49% to reflect strong demand and delivery progress. The broker maintained its TP at HKD47, based on a 13x valuation of the average forecast EBITDA of GDS-SW's China business for 2026-2027, as well as the valuation of its approximately 20% stake in DayOne, while reiterating the Buy rating. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-14 16:25.)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**