Overview

* VNET ( VNET ) Q2 revenue rises 22.1% yr/yr, driven by 112.5% wholesale IDC growth

* Adjusted EBITDA increases 27.7% yr/yr, margin improves to 30.1%

* Co reports net loss due to higher interest and tax expenses

Outlook

* Company expects 2025 revenue between RMB9,150 mln and RMB9,350 mln, up 11% to 13% YoY

* VNET ( VNET ) forecasts 2025 adjusted EBITDA of RMB2,760 mln to RMB2,820 mln

* Company aims to expand data center capacity to 10GW by 2036

Result Drivers

* WHOLESALE IDC GROWTH - Wholesale IDC business revenue grew by 112.5% yr/yr, driven by a 101MW increase in wholesale capacity in service

* RETAIL ORDERS - Secured around 4MW in retail orders during the qtr, maintaining retail revenues at RMB958.7 mln

* HYPERSCALE 2.0 - Co launched Hyperscale 2.0 framework to expand data center capacity to 10GW by 2036, aiming for greener, intelligent data centers

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 RMB 2.43

Revenue bln

Q2 Net -RMB

Income 11.90

mln

Q2 RMB

Adjusted 732.50

EBITDA mln

Q2 30.1%

Adjusted

EBITDA

Margin

Q2 Gross RMB

Profit 547.70

mln

Q2 RMB

Operatin 374.70

g mln

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for VNET Group Inc ( VNET ) is $12.20, about 34.6% above its August 20 closing price of $7.98

* The stock recently traded at 260 times the next 12-month earnings vs. a P/E of 1,137 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)