Range Intelligent (300442) Report Interpretation

Overview

This conference-takeaways report examines how Range Intelligent is shifting its growth engine toward domestic AIDC while building overseas IDC capacity. Goldman Sachs argues that the company’s resource base, margin-focused AIDC contracting, financing position and expansion in Hong Kong and Batam underpin its Buy view and long-term growth expectations.

Core views

Range Intelligent has evolved from traditional IDC cabinet colocation, its original focus since 2009, into AIDC services around 2022-23, including computing-power rental and full-stack solutions. Management said domestic AIDC became the higher revenue contributor relative to IDC for the first time in 1H26. Goldman Sachs views this transition as central to the growth case because the company is emphasizing high-margin orders and selective, lower-risk customers rather than pursuing AIDC volume indiscriminately. Customer concentration has also become more balanced: the two largest customers each contribute about 30% of revenue and the third contributes about 15%. The domestic capacity platform is intended to capture continuing computing-cluster demand. Range operates nine campuses globally with 6GW of total resources, rising from 2-3GW in 2022; this includes 5.4GW in China and 0.6GW overseas. Domestic sites are positioned near major tier-1 demand hubs, including Langfang near Beijing, Pinghu near the Yangtze River Delta, Foshan near Guangzhou and Huizhou near Shenzhen. Capacity in service had reached about 1GW, following deliveries in Chongqing, Huizhou and Langfang. Goldman Sachs highlights that most of the 6GW reserved capacity has secured power-quota approvals, which it sees as a key advantage in meeting demand through long-term contracts. AIDC investment remains concentrated in computing-power acquisition. GPU procurement slowed temporarily in 1H26 as GPU prices surged, but management may increase purchases in 2H26 depending on price trends and chip availability. Fixed assets rose by Rmb116mn in 2025, of which about Rmb100mn related to AIDC. Goldman Sachs identifies fixed assets, construction in progress, prepayments, capex and depreciation as accounting indicators to monitor as the AIDC business scales. The company reported a 45% AIDC gross profit margin in 1H26, materially above the cited 20-25% average for typical computing-power rental peers. Its standard five-year contracts target a three-year payback period and include fixed pricing plus a 100% remaining-value early-termination penalty, mechanisms intended to reduce customer-default and asset-recovery risk. Infrastructure capability is another part of the growth thesis. Liquid-cooling capacity and components were undersupplied in 1H26, but Range had deployed liquid cooling across 65% of its domestic AIDC infrastructure and plans 100% coverage in overseas IDCs. Goldman Sachs sees the company’s full-stack AIDC capabilities as supporting operational stability and ongoing technology investment, while its rich resource reserves and long-term customer relationships support its projected 27% utilized IT-capacity CAGR and 33% revenue CAGR for 2025-30E. The report also expects GPUaaS investments to generate incremental profitability if demand and pricing remain favorable. Overseas expansion is focused on Hong Kong and Batam. The Hong Kong campus is planned as the city’s largest, with 240MW capacity and Rmb21.8bn of investment during its first three years. Management cited land costs of roughly one-tenth of the market average and 24-hour construction, and expects the first building to be powered before July 2027. It characterized Hong Kong as a seller’s market, with average gross margins of 57% and all capacity through 2027 sold out. In Batam, 60MW is scheduled for delivery in 4Q26, supported by prefabricated modular data-center shipments from China; management intends to control investment pacing until power is secured. Overall, Range aims to deliver 1GW overseas in the next three to five years, and Goldman Sachs is positive on this expansion because it can leverage the company’s supply-chain and human-resource capabilities to address long-term APAC AI demand. Financially, management targets continuation of the historical 30% four-year CAGR in revenue, EBITDA and net profit since the 2022 listing, aiming for a 30% CAGR over the next five years. It targets Rmb20bn of operating cash flow by 2030E, compared with Rmb6bn in 2026E. In 1H26, total revenue and adjusted net profit each grew more than 50% year on year, although slower computing-power acquisition constrained AIDC revenue growth to some extent. The balance sheet had a debt-to-asset ratio below 65%, while three-year bank loans could carry financing costs as low as 1.7%; Goldman Sachs regards this financing flexibility as a support for capacity rollout. Goldman Sachs is Buy-rated and values the company at a Rmb117.00 12-month target price. The target is based on an 18x 2030E EV/EBITDA multiple discounted back to end-2026E using a 10% cost of equity. The 18x multiple is a weighted average of 25x for data-center operations EBITDA and 10x for GPUaaS, reflecting the report’s differing valuation treatment for the two earnings streams. The stated Rmb64.95 share price as of 1 September 2026 implies 80.1% upside to the target.

Analysis framework

Goldman Sachs combines conference comments from management with analysis of capacity resources, AIDC operating economics, customer mix, overseas project timing, financial trends and balance-sheet funding. It then applies separate EV/EBITDA multiples to the data-center operations and GPUaaS businesses, discounts the resulting 2030E valuation to end-2026E, and derives a 12-month target price.

Methodology notes

• Industry AnalysisSupply-demand framework

  Data-center capacity, computing demand, GPU availability, utilization and pricing

  The report links Range’s power-backed capacity and delivery pace to computing-cluster demand, while treating GPU supply, utilization ramp-up and pricing as determinants of AIDC growth and profitability.

• Valuation methodsEV/EBITDA valuation

  Segment-weighted EV/EBITDA valuation discounted at a 10% cost of equity

  Goldman Sachs assigns 25x EV/EBITDA to data-center operations and 10x to GPUaaS, averages them to an 18x 2030E target multiple, then discounts the valuation back to end-2026E.

• Industry AnalysisUpstream-Midstream-Downstream Transmission

  GPU supply and liquid-cooling availability feeding through to AIDC deployment

  The report connects chip pricing and availability, as well as liquid-cooling supply, to procurement, capacity deployment and the company’s ability to serve AI-computing customers.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Range Intelligent (300442.SZ)

  Primary covered company; Goldman Sachs expects domestic AIDC and overseas IDC expansion to support quality growth.

  Strengths

  6GW resource base, full-stack AIDC capabilities, 45% AIDC gross margin in 1H26, increasingly balanced customer mix, low financing costs and overseas delivery plans.

  Weaknesses

  AIDC revenue growth was somewhat affected by slower computing-power acquisition in 1H26.

  Comparison

  Its 45% AIDC gross margin compares with a cited 20-25% average for typical computing-power rental companies; Hong Kong data-center market average gross margin is cited at 57%.

  Risks

  Order wins, utilization ramp-up, pricing, overseas execution, chip availability, domestic capacity delivery and financing could underperform expectations.

Key data

• 12-month target priceRmb117.00Based on an 18x 2030E EV/EBITDA multiple discounted to end-2026E at a 10% cost of equity.
• Current priceRmb64.95Price as of 1 Sep 2026 close.
• Implied upside80.1%Upside from the stated current price to the target price.
• Total capacity resources6GWComprises 5.4GW domestic and 0.6GW overseas resources across nine campuses.
• Capacity in servicec.1GWReached recently following new deliveries in Chongqing, Huizhou and Langfang.
• AIDC gross profit margin45%Achieved in 1H26, compared with a cited 20-25% average for typical computing-power rental companies.
• Hong Kong campus capacity240MWFirst building is expected to be powered up before July 2027.
• Batam delivery60MWScheduled for 4Q26.
• Overseas delivery target1GWManagement target for the next three to five years.
• 2030E operating cash-flow targetRmb20bnCompared with Rmb6bn in 2026E.

Impact & implications

The report argues that Range’s domestic power-backed campus resources and margin-disciplined AIDC contracts can support profitable capacity growth, while Hong Kong and Batam add a longer-term overseas leg. Its positive view depends on continued AI-computing demand, attractive GPUaaS economics, timely project execution and access to chips and financing.

Risks

• Order wins could be lower than expected in a competitive environment.
• Utilization rates could ramp more slowly than expected.
• Pricing pressure could be greater than expected.
• Overseas expansion could execute worse than expected.
• Regulatory changes or other factors could worsen chip availability, while domestic capacity ramp-up could be delayed.
• The company could face financing difficulties.

What to watch

• GPU pricing trends and chip availability, which will influence whether the company steps up GPU procurement in 2H26.
• AIDC accounting indicators, including fixed assets, construction in progress, prepayments, capex and depreciation.
• Utilization and margin performance of AIDC contracts, including progress toward the targeted three-year payback period.
• Hong Kong construction and whether the first building is powered before July 2027.
• Batam’s planned 60MW delivery in 4Q26 and the availability of power for further overseas investment.
• Progress toward management’s 1GW overseas-delivery target over the next three to five years.