Broad Peak Initiates Stake in Chinese Data Center Operator GDS Holdings

Broad Peak Investment Advisers Pte Ltd has disclosed a new investment in GDS Holdings (NASDAQ: GDS), according to a recent SEC filing. The Singapore-based hedge fund acquired 445,050 shares, with an estimated transaction value of $19.08 million based on quarterly average pricing. The acquisition represents approximately 3.64% of Broad Peak's reportable 13F assets under management. By the end of the quarter, the market value of the position adjusted to $17.93 million, reflecting recent price movements in the Chinese tech infrastructure sector. GDS Holdings, a primary developer of high-performance data centers in China, has experienced a strong rally. As of April 22, 2026, shares were priced at $43.16, marking a 92.7% increase over the previous year and significantly outperforming the S&P 500. Since 2023, the stock has climbed 168%, representing a compound annual growth rate of 38.9%. Despite the growth, the company's valuation has reached a three-year high. GDS currently trades at a price-to-sales (P/S) ratio of 5.9x, which is more than double its three-year average of 2.9x. The entry of Broad Peak signals continued institutional interest in China's digital transformation and cloud infrastructure. However, the elevated P/S ratio suggests that much of the growth may already be priced into the equity, prompting a cautious outlook for value-oriented investors.