Professional
Added to YB: 2024-06-07
Pitch date: 2024-05-30
VNET [bullish]
VNET Group, Inc.
+345.63%
current return
Author Info
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Company Info
VNET Group, Inc., an investment holding company, provides hosting and related services in China. The company offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers’ servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; and value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and standby server services.
Market Cap
$16.8B
Pitch Price
$2.06
Price Target
3.50 (-62%)
Dividend
N/A
EV/EBITDA
10.83
P/E
-202.30
EV/Sales
4.29
Sector
IT Services
Category
growth
VNET Group, Inc.: Solid Revenue Growth, Driven by AI and Wholesale Business
VNET: Q1 rev +5.1% YoY, adj EBITDA +2.5%. 2024 guide: rev +6.6%, EBITDA +10.4%. Wholesale IDC rev +59% YoY, retail IDC -7%, non-IDC +5%. Cabinet utilization 52% to 71%. P/B 0.6x. AI & wholesale driving growth. $3.50 FVE on 3% 5yr rev growth, 30.5% EBITDA margin by 2028. FCF+ 2026. Risks: oversupply, regulation, VIE structure ban. Standard stewardship on smart capex & equity raises.
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