21Vianet (VNET, Financial) recently experienced a surge in bullish options trading, with a notable 16,444 call contracts changing hands, which is four times the usual volume. This activity has led to an increase in implied volatility, now standing at 94.29%. The most heavily traded options were the Sep-25 calls at the $8 strike and the Jul-25 calls at the $9 strike, together accounting for nearly 9,300 contracts. The Put/Call Ratio is notably low at 0.04, indicating a strong preference for calls over puts. Investors are also keenly anticipating the company’s earnings report, expected on August 26th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for VNET Group Inc (VNET, Financial) is $12.37 with a high estimate of $20.01 and a low estimate of $9.01. The average target implies an upside of 57.71% from the current price of $7.84. More detailed estimate data can be found on the VNET Group Inc (VNET) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, VNET Group Inc's (VNET, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for VNET Group Inc (VNET, Financial) in one year is $2.94, suggesting a downside of 62.52% from the current price of $7.8433. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the VNET Group Inc (VNET) Summary page.
VNET Key Business Developments
Release Date: May 28, 2025
- Total Net Revenues: RMB2.25 billion, up 18.3% year-over-year.
- Wholesale Revenues: RMB673 million, up 86.5% year-over-year.
- Adjusted EBITDA: RMB682 million, up 26.4% year-over-year, with a margin of 30.4%.
- Wholesale Capacity in Service: 573 megawatts, up 18.1% quarter over quarter.
- Wholesale Capacity Utilized: 437 megawatts, up 23.9% quarter over quarter.
- Utilization Rate: Increased by 3.6 percentage points to 76.2%.
- Retail Capacity in Service: 51,960 cabinets with a utilization rate of 63.7%.
- MRR per Retail Cabinet: RMB8,898.
- Net Operating Cash Inflow: RMB195.7 million.
- Total Cash and Cash Equivalents: RMB5.79 billion as of March 31, 2025.
- CapEx: RMB1.82 billion for the first quarter.
- Full Year 2025 Revenue Guidance: RMB9.1 billion to RMB9.3 billion, growth of 10% to 13%.
- Full Year 2025 Adjusted EBITDA Guidance: RMB2.7 billion to RMB2.76 billion, growth of 15% to 18%.
- Full Year 2025 CapEx Guidance: RMB10 billion to RMB12 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VNET Group Inc (VNET, Financial) achieved a strong set of results in the first quarter of 2025, setting a positive tone for the year ahead.
- Wholesale IDC business recorded impressive performance with wholesale capacity in service growing 18.1% quarter over quarter to 573 megawatts.
- Total net revenues increased by 18.3% year-over-year to RMB2.25 billion, with wholesale revenues reaching a record high of RMB673 million, representing an 86.5% year-over-year growth.
- Adjusted EBITDA for the first quarter increased by 26.4% year-over-year to RMB682 million, with an adjusted EBITDA margin of 30.4%.
- VNET Group Inc (VNET) strengthened its financing capabilities by issuing USD430 million of convertible senior notes and securing a sustainability-linked loan of RMB500 million at favorable interest rates.
Negative Points
- The H20 chip embargo caused a short-term impact on client demand, particularly for hyperscalers, although adjustments have been made.
- Retail IDC business utilization rate increased only slightly to 63.7%, indicating potential challenges in maximizing retail capacity.
- CapEx for the first quarter was RMB1.82 billion, with a significant increase expected for the full year 2025, which may impact cash flow.
- The company faces challenges in maintaining a stable electricity tariff, which could affect operational costs.
- The timeline for a potential Hong Kong listing remains uncertain, which could impact future capital raising opportunities.
