Runze Technology Shifts Strategically to AIDC, Receives Goldman Sachs Buy Rating

Overview

This report focuses on Runze Technology’s (300442.SZ) strategic transformation—from traditional Internet Data Centers (IDCs) to AI Data Centers (AIDCs). The institution believes this shift not only delivers higher gross margins and profitability but also signals substantial long-term growth potential amid the AI wave. The report notes that AIDC has become the company’s primary revenue driver, with an operating model offering greater scalability and customization capabilities. Additionally, the company possesses strong financing capacity and promising international expansion prospects.

Core views

Runze Technology achieved AIDC revenue exceeding IDC revenue for the first time in Q1 2026, marking a substantive shift in its business focus. AIDC operations include GPU leasing (GPU-as-a-Service, or GPUaaS) and customized data center construction, with gross margins ranging from 40% to 50%—significantly outperforming traditional IDCs. The company has built competitive differentiation through liquid cooling technology and ultra-low-latency network connectivity—for example, delivering a 100 MW data center in 2025 and planning a 200 MW project for 2026. Moreover, the company utilizes its C-REITs platform to achieve a closed-loop model of 'build–operate–transfer', enhancing asset liquidity. Management expects the company to deliver over 300 MW of capacity in 2026, of which approximately 260 MW will be AIDC capacity, concentrated primarily in the second half of the year. Domestically, the company serves China’s top four hyperscale customers, with customer concentration gradually declining. Internationally, the company prioritizes ASEAN markets and plans to deliver a campus exceeding 300 MW on Batam Island, Indonesia, by end-2026, alongside establishing a campus listed on the Hong Kong Stock Exchange. In terms of customer composition, AI and internet companies have become the primary client base, progressively replacing large LLM-focused firms. Financially, the company’s capital expenditures in 2026 are projected to exceed RMB 12 billion, funded via equity issuance, bond offerings, C-REITs, and internal cash resources. Its financing cost remains around 3%, supported by over RMB 60 billion in committed bank credit lines, reflecting strong financial flexibility.

Analysis framework

The institution first establishes AIDC’s role as the company’s core growth engine by comparing its profitability against traditional IDCs. It then analyzes the supply side—focusing on the company’s customization capabilities, technological sophistication, and economies of scale—emphasizing advantages in liquid cooling, low latency, and capacity pipeline. Next, it evaluates demand-side dynamics—including evolving customer structure and order visibility—to confirm robust client foundations amid the AI wave. Subsequently, it assesses long-term development capacity and financial health by examining overseas expansion pathways and financing arrangements. Finally, it derives the target price and rating through financial forecasting and valuation modeling.

Methodology notes

• Industry/Sector Analysis FrameworkSupply-demand framework

  Supply-Demand Framework

  Assesses pricing trends and growth potential for AIDC by analyzing imbalances between market demand (for high-density compute clusters) and supply (constrained GPU availability)

• Valuation MethodEV/EBITDA valuation

  EV/EBITDA Valuation

  Applies EV/EBITDA multiples for valuation, assigning distinct multiples to DC operations and GPUaaS businesses to reflect differing value profiles across business segments

• Corporate Fundamentals & Financial FrameworkFree cash flow analysis

  Free Cash Flow Analysis

  Evaluates capital expenditure, depreciation, and cash flow dynamics to assess operational efficiency and sustainability during rapid expansion

Asset mapping & comparison

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

• Runze Technology (300442.SZ)

  Benefiting from AI data center transformation, with business focus shifting to AIDC

  Strengths

  Possesses liquid cooling technology and customized data center capabilities; declining customer concentration; strong international expansion potential

  Weaknesses

  Faces intensifying competition and uncertainty regarding chip supply

  Comparison

  Compared to peers, it holds advantages in liquid cooling technology and customer mix optimization

  Risks

  Orders falling short of expectations; underperformance in overseas execution; chip supply constraints driving up costs

Key data

• AIDC Revenue Exceeds IDC Revenue for the First TimeQ1 2026Signals tangible progress in business transformation
• AIDC Gross Margin40–50%Significantly higher than traditional IDCs
• Expected 2026 Delivery Capacity300 MW+Of which ~260 MW is AIDC capacity
• Financing Cost~3%Reflects strong financial flexibility
• 2026 Capex Forecast>RMB 12 billionFunded through diversified sources

Impact & implications

Runze Technology’s strategic transformation marks its entry into the AI infrastructure sector, positioning it to capture growth tailwinds from rising AI compute demand. The institution believes the company holds competitive advantages in technology, customer mix, financing capability, and international footprint—conferring long-term investment appeal. As the AIDC business share continues to increase, both profitability and valuation metrics are expected to rise further.

Risks

• Orders falling short of expectations
• Underperformance in overseas expansion execution
• Chip supply shortages leading to higher costs
• Changes in financing environment

What to watch

• 2026 AIDC delivery progress and customer contract signings
• Overseas project implementation and customer acquisition progress
• Pricing trends for GPUaaS services