Goldman Sachs: Wise Intelligent Strategically Pivots to AIDC, Maintains Buy Rating

Overview

Based on the Asia Communication + Technology conference minutes, Goldman Sachs analyzes Wise Intelligent's strategic transformation towards Artificial Intelligence Data Centers (AIDC). The core conclusion is that the company's AIDC business revenue has surpassed traditional IDC, capacity expansion is accelerating, and customer structure is optimizing; thus, the Buy rating is maintained with a target price of CNY 117.

Core views

Regarding strategic transformation, AIDC revenue surpassed IDC for the first time in 1Q26, covering GPU computing power leasing and customized data center operations. AIDC gross margins reached 40-50%, significantly higher than traditional IDC, primarily due to GPUaaS value-added services and customized delivery. New contract pricing in 2026 increased by 20-30% compared to the first half of 2025, with an expected annual increase of 30%. Regarding capacity expansion, total domestic reserved capacity is 5.4GW, with 70-80% of power quotas locked. The plan is to deliver 300MW+ in 2026 (220MW in 2025), of which 260MW is AIDC, with most deliveries occurring in the second half of the year. Overseas focus is on the ASEAN market, with the Batam park delivering 40MW by end-2026, and the Hong Kong park starting deliveries in 2027-28. Regarding customer dynamics, industry order volume may double to 6GW. Among the company's 300MW+ delivery capacity, all except Pinghu (80MW) and Batam (40MW) are covered by orders. The revenue share of the largest customer decreased from 60-70% to approximately 40% by end-2026, with contributions from the top three customers becoming more balanced. GPUaaS customers are primarily AI and internet companies, with the proportion of demand from hyperscale cloud providers expected to rise in the future. Regarding financing strategy, the company utilizes the C-REITs platform to achieve an invest-build-operate-exit cycle. The first building was sold for CNY 4.5 billion (with prior capital expenditure of CNY 800 million). The plan is to inject two buildings within the year, targeting a valuation of CNY 8 billion and raising over CNY 6 billion in funds. The comprehensive financing cost is approximately 3%, supported by over CNY 60 billion in bank credit lines and CNY 4 billion in low-interest financial instrument quotas. Capital expenditure in 2026 is expected to exceed CNY 12 billion (CNY 12 billion in 2025), with funding sources including equity, convertible bonds, C-REITs proceeds, and operating cash flow.

Analysis framework

Goldman Sachs employs a Sum-of-the-Parts (SOTP) valuation method, assigning a 25x EV/EBITDA multiple to the data center operations business and a 10x EV/EBITDA multiple to the GPUaaS business, deriving a weighted average target multiple of 18x, discounted to end-2026. The analysis logic revolves around a supply-demand framework: the demand side benefits from the shortage of AI computing clusters, while the supply side focuses on the company's locked power quotas and capacity delivery 节奏 (rhythm). Simultaneously, combining capacity cycle theory, it assesses the alignment between the company's capital expenditure and industry prosperity. Methodologically, the report validates the transformation value through unit economics comparison (AIDC vs. IDC gross margins, capital expenditure differences), analyzes risk diversification effects via changes in customer concentration, and leverages the C-REITs case to illustrate the enhancement of financing capabilities through asset-light operations.

Methodology notes

• Valuation MethodSOTP Sum-of-the-Parts Valuation

  Calculating overall value by applying different valuation multiples to different business segments and weighting them

  Goldman Sachs assigns 25x and 10x EV/EBITDA multiples to data center operations and GPUaaS businesses respectively, reflecting differences in their growth prospects and helping investors understand the valuation logic for diversified businesses

• Industry/Sector Analysis FrameworkSupply-demand framework

  Judging industry prosperity by analyzing the relationship between supply and demand

  The report points out that demand for high-density computing clusters exceeds supply, driving a 30% annual increase in AIDC pricing, reflecting the supportive role of supply-demand imbalance on prices

• Cycle and Prosperity FrameworkCapacity/Equipment Cycle (Juglar)

  Correlation analysis between corporate capital expenditure cycles and industry capacity expansion rhythms

  The company's capital expenditure exceeding CNY 12 billion in 2026 matches the trend of doubling industry orders, reflecting the synchronization between the capacity expansion cycle and demand growth

Key data

• Target PriceCNY 117Based on discounting 18x 2030E EV/EBITDA
• 2026 Delivery Capacity300MW+Of which 260MW is AIDC, with most delivered in the second half
• Comprehensive Financing Cost~3%Supported by over CNY 60 billion in bank credit lines and CNY 4 billion in low-interest quotas
• AIDC Gross Margin40-50%Significantly higher than traditional IDC, benefiting from GPUaaS value-added services
• Industry Order Volume6GWMay double this year; top listed companies collectively secured 1.5-2GW in orders

Impact & implications

The research report believes the company's strategic transformation will drive long-term growth, with a 2025-30E CAGR for available IT capacity/revenue reaching 27%/33%. The high-margin nature of AIDC and overseas expansion plans (with better pricing in ASEAN) are expected to enhance profitability. The C-REITs model reduces capital expenditure pressure, but attention should be paid to risks regarding order acquisition, utilization rate ramp-up, and chip supply.

Risks

• Order acquisition falling short of expectations in a competitive environment
• Utilization rate ramp-up slower than expected
• Pricing pressure greater than expected
• Execution risks in overseas expansion
• Chip supply affected by regulatory issues or capacity delays
• Increased financing difficulties