On May 27, VNET Group rose 8.95% in regular trading, trading at $10.66/share, with trading volume of approximately $28.32 million.
The rally was driven by a combination of better-than-expected Q1 results and a transformative strategic investment. VNET reported Q1 revenue of 2.69 billion RMB, up 19.8% year-over-year, slightly beating the FactSet consensus estimate of 2.68 billion RMB. Adjusted EBITDA surged 30.6% to 892 million RMB. Notably, wholesale IDC revenue of 1.06 billion RMB grew 58.1% and surpassed retail IDC revenue for the first time, marking a structural milestone.
Simultaneously, Shangan Holdings announced the sale of its approximately 38.78% stake in VNET to a CATL-affiliated entity for $942 million, with closing expected in Q4. The partnership aims to build a green energy plus high-efficiency computing ecosystem, integrating battery storage technology with data center power demands. The company maintained full-year revenue guidance of 11.5-11.8 billion RMB and capital expenditure of 10-12 billion RMB.
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