VNET Group: REIT Injection And Capex Growth Are The Major Positives
Portfolio Pulse from
VNET Group is rated as a 'Buy' due to its attractive valuations and growth prospects. The company's forward EV/EBITDA ratio is lower than peers, suggesting potential for re-rating. Increased capital expenditures by China's tech giants are expected to boost VNET's EBITDA growth significantly in the coming years.
February 28, 2025 | 10:30 am
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VNET Group is rated as a 'Buy' due to its lower forward EV/EBITDA ratio compared to peers and expected EBITDA growth driven by increased capex from China's tech giants.
VNET Group's lower forward EV/EBITDA ratio compared to US and Asian peers suggests undervaluation, providing potential for a re-rating. Additionally, the anticipated increase in capital expenditures by China's tech giants is expected to significantly boost VNET's EBITDA growth from 11% in FY24 to 22% in FY25, making it an attractive investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100