Chindata Group Holdings Limited

NasdaqGS:CD Stock Report

Market Cap: US$3.1b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Chindata Group Holdings Future Growth

Future criteria checks 4/6

Chindata Group Holdings is forecast to grow earnings and revenue by 25.6% and 15.7% per annum respectively. EPS is expected to grow by 13.8% per annum. Return on equity is forecast to be 10% in 3 years.

Key information

25.6%

Earnings growth rate

13.81%

EPS growth rate

IT earnings growth18.6%
Revenue growth rate15.7%
Future return on equity10.02%
Analyst coverage

Good

Last updated18 Dec 2023

Recent future growth updates

Recent updates

Analysis Article • Apr 06

Here's Why Chindata Group Holdings (NASDAQ:CD) Has Caught The Eye Of Investors

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
Analysis Article • Mar 07

An Intrinsic Calculation For Chindata Group Holdings Limited (NASDAQ:CD) Suggests It's 24% Undervalued

Key Insights The projected fair value for Chindata Group Holdings is US$9.82 based on 2 Stage Free Cash Flow to Equity...
Analysis Article • Jan 20

Chindata Group Holdings (NASDAQ:CD) Is Doing The Right Things To Multiply Its Share Price

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...
Analysis Article • Jan 04

We Ran A Stock Scan For Earnings Growth And Chindata Group Holdings (NASDAQ:CD) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Analysis Article • Dec 01

Market Participants Recognise Chindata Group Holdings Limited's (NASDAQ:CD) Earnings Pushing Shares 35% Higher

Those holding Chindata Group Holdings Limited ( NASDAQ:CD ) shares would be relieved that the share price has rebounded...
Analysis Article • Oct 07

Returns Are Gaining Momentum At Chindata Group Holdings (NASDAQ:CD)

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Seeking Alpha • Sep 21

Chindata gains on report company evaluating asset sale, take private

Chinese data center service company Chindata Group (NASDAQ:CD) rose 2.3% in premarket trading on a report that the company hired an adviser to consider potential asset sales or a take private. Chindata (CD) has been soliciting interest in possible divestitures and has had some interest from private equity, according to a Dealreporter item. Chindata has a market cap of $3.1 billion. The news comes after Bloomberg reported in April that  Bain-backed Chindata (CD) had received takeover interest from other firms in the industry.  GDS Holdings (GDS) was said to be evaluating an offer to combine with Chindata.  Chindata (CD) went public in late September 2020. The company competeds with GDS (GDS) and 21Vianet (VNET). Bloomberg also reported in late July that MBK Partners was said to be considering making an offer for 21Vianet (VNET).
Seeking Alpha • Sep 01

Chindata Group: Customer Concentration Is A Double-Edged Sword

Summary Chindata's performance for Q2 2022 was reasonably good based on an evaluation of the company's key metrics for the recent quarter. CD's key anchor customer, ByteDance, helped to drive the company's good results in Q2, but this is also an area of concern considering its high degree of dependence on ByteDance. I have a Hold rating for Chindata; CD's medium-term outlook is excellent, but a slowdown in Q3 and Q4 2022 seems likely and I am concerned about customer concentration risks. Elevator Pitch I assign a Hold investment rating to Chindata Group Holdings Limited's (CD) stock. CD's reliance on its key anchor customer ByteDance (BDNCE) is a double-edged sword. On the positive side of things, BDNCE is at a stage of high growth, and this translates into strong top line and bottom line expansion for Chindata. On the negative side of things, if ByteDance pulls back on its growth plans or considers doing more business with other providers, CD will be adversely affected. As such, I deem a Hold rating to be appropriate for Chindata. Good Q2 2022 Financial Performance On its corporate website, Chindata refers to itself as "a leading carrier-neutral hyperscale data center solution provider" and "a first mover in building next-generation hyperscale data centers" in Asia. CD disclosed the company's financial results for the second quarter of this year on August 25, 2022 before the market opened, and I think that Chindata's most recent quarterly financial and operating metrics were good. With regards to headline financial numbers, Chindata's top line rose by +13% QoQ and +51% YoY to RMB1,038 million in Q2 2022. The company's non-GAAP EBITDA margin expanded by +310 basis points YoY from 49.3% in Q2 2021 to 52.4% for Q2 2022. The robust revenue growth and the significant operating profitability improvement helped to drive a +114% YoY and +36% QoQ increase in Chindata's adjusted net profit to RMB242 million for the recent quarter. CD also impressed investors with its key operating metrics. The company's utilization rate improved by approximately +900 basis points QoQ and +800 basis points YoY to 78% for Q2 2022. Separately, Chindata is managing its costs well as seen with certain operating efficiency metrics. In its Q2 2022 earnings presentation slides, CD revealed that the company's construction cost on a per MW basis and its Power Usage Effectiveness or PUE (the lower the better) were $3.3 million (in USD terms) and 1.19, respectively for the second quarter of this year. In comparison, Chindata highlighted that the industry average construction cost per MW and PUE were much higher at $7-8 million and 1.59, respectively. Capacity Expansion Pipeline Is Supportive Of Intermediate-Term Growth Expectations CD's in-service capacity grew by +42% YoY from 361 MW in the second quarter of the previous year to 511 MW in the most recent quarter. The Expected Timeline For Chindata's Under Construction Capacity To Come Onstream Chindata's Q2 2022 Earnings Presentation As indicated in the chart above, Chindata currently has 265 MW of capacity that is under construction which should come onstream by 2023. The timeline provided by CD suggests that CD's in-service capacity is expected to increase by +37% from 404 MW at the end of 2021 to 604 MW as of December 31, 2022, before rising by another +29% to 776 MW by the end of next year. The expected expansion of Chindata's in-service capacity for this year and the following year are aligned with the market's consensus financial estimates for the company. Based on the sell-side's consensus projections taken from S&P Capital IQ, CD's revenue is forecasted to grow by +47.0% and +34.7% for fiscal 2022 and fiscal 2023, respectively. Similarly, the analysts think that EBITDA for Chindata can expand by +51.9% and +36.9% in the current year and the next year, respectively. Watch Customer Concentration Risks And Slower Near-Term Growth Although Chindata should deliver strong top line and operating profit growth for full-year FY 2022 and FY 2023 as described in the preceding section, the company's shares might not necessarily perform well in the very near term. One concern is customer concentration risks, or more specifically Chindata's reliance on its key anchor client, ByteDance, best known as the parent of TikTok. BDNCE contributed 83% of CD's revenue in fiscal year 2021. ByteDance was also the driving force for Chindata's strong growth in Q2 2022, as per the chart below indicating the increase in capacity contributed by its anchor client, BDNCE in the recent quarter. The Incremental Contracted Capacity Growth Contributed By CD's Anchor Customer In Q2 2022 Chindata's Q2 2022 Earnings Presentation Looking ahead, ByteDance continues to be the key driver of Chindata's future growth. Referring to the earlier chart detailing the timeline for CD's under construction capacity to come onstream presented in the preceding section, BDNCE is the customer for Chindata's key data center projects in the pipeline such as CN-14, CN-18, and MY06-1, MY06-2.
Seeking Alpha • Aug 25

Chindata ADS GAAP EPADS of $0.08, revenue of $155M; reaffirms FY22 guidance

Chindata ADS press release (NASDAQ:CD): Q2 GAAP EPADS of $0.08. Revenue of $155M (+45.8% Y/Y). Adjusted EBITDA in the second quarter of 2022 increased by 60.8% to $81.3M, from RMB338.5M in the same period of 2021. The company reiterated its guidance for full year 2022 as follows. Total revenue of RMB4,130 million – RMB4,230 million, a 44.8-48.3% increase over full year 2021 vs. estimated growth of 36.58% Y/Y; adjusted EBITDA of RMB2,100 million – RMB2,180 million, a 48.0-53.6% increase over full year 2021.
Analysis Article • Jun 20

Returns At Chindata Group Holdings (NASDAQ:CD) Are On The Way Up

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Seeking Alpha • Apr 25

Chindata Potentially Up For Sale As M&A Heats Up In China Data Centers

Data center operators GDS and EdgeConneX have reportedly expressed interest in making bids for Chindata. Chindata’s control by U.S. private equity giant Bain and the recent departure of its founder may make it ripe for such a buyout. At the end of the day, Chindata does look quite ripe for the picking by a larger peer due to its recent management overhaul and relatively small size.
Analysis Article • Mar 22

Is Chindata Group Holdings Limited (NASDAQ:CD) Expensive For A Reason? A Look At Its Intrinsic Value

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Chindata Group...
Seeking Alpha • Mar 14

Renewed Focus Clears Distractions For Chindata After Founder's Abrupt Exit

Chindata reported its revenue grew 41% in the fourth quarter, as its full-year revenue and EBITDA for 2021 exceeded previous guidance. Results announcement follows company’s formation of a new management team to focus on its main data center business after abrupt departure of expansion-minded founder. Despite its recent turbulence, Chindata is still a relative favorite when compared with its two main rivals VNET Group and GDS Holdings Ltd.
Analysis Article • Mar 01

Chindata Group Holdings (NASDAQ:CD) Is Doing The Right Things To Multiply Its Share Price

What are the early trends we should look for to identify a stock that could multiply in value over the long term...
Seeking Alpha • Jan 18

Chindata Charts Life After Founder, But Uncertainty Keeps Investors At Bay

The data center operator’s shares rallied after it gave terms for transition with its founder’s departure, only to later give back the gains. Chindata said it has agreed with its founder Ju Jing on terms of his departure, including a substantial reduction of his super-voting shares. Plan will help the company move forward, though uncertainty remains over new businesses that Ju was promoting.
Seeking Alpha • Jan 05

Chindata Grows But Founder CEO's Abrupt Departure Raises Risks

Chindata went public in September 2020, raising $540 million in a U.S. IPO of its ADSs. The firm builds and operates hyperscale and prefabricated data centers in China and Southeast Asia. CD has grown revenue and produces profits but faces significant Chinese regulatory risks. The recent abrupt resignation of the founder and CEO has raised further questions about the company, so my short-term outlook is Neutral.
Analysis Article • Dec 01

We Think That There Are Issues Underlying Chindata Group Holdings' (NASDAQ:CD) Earnings

Chindata Group Holdings Limited's ( NASDAQ:CD ) robust earnings report didn't manage to move the market for its stock...
Analysis Article • Nov 27

Chindata Group Holdings Limited Surprised Analysts With A Profit, And Analysts Boosted Their EPS Forecasts

Investors in Chindata Group Holdings Limited ( NASDAQ:CD ) had a good week, as its shares rose 3.7% to close at US$9.72...
Analysis Article • Apr 03

Analysts Are Optimistic We'll See A Profit From Chindata Group Holdings Limited (NASDAQ:CD)

With the business potentially at an important milestone, we thought we'd take a closer look at Chindata Group Holdings...
Analysis Article • Feb 27

Is Chindata Group Holdings Limited's (NASDAQ:CD) Shareholder Ownership Skewed Towards Insiders?

The big shareholder groups in Chindata Group Holdings Limited ( NASDAQ:CD ) have power over the company. Institutions...

Earnings and Revenue Growth Forecasts

NasdaqGS:CD - Analysts future estimates and past financials data (CNY Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/20258,8621,8561283,7148
12/31/20247,3841,352-2,2933,0839
12/31/20236,132995-3,0162,8879
6/30/20235,590830-3,2642,096N/A
3/31/20235,075810-3,7291,384N/A
12/31/20224,552652-3,825859N/A
9/30/20223,943650-3,805767N/A
6/30/20223,481487-3,4391,230N/A
3/31/20223,130353-3,1471,040N/A
12/31/20212,852316-2,5511,066N/A
9/30/20212,624175-2,529986N/A
6/30/20212,350-101-2,222836N/A
3/31/20212,082-211-2,254758N/A
12/31/20201,831-283-2,047665N/A
9/30/20201,625-285-2,147402N/A
6/30/20201,442-135-1,915351N/A
3/31/20201,135-139-1,750141N/A
12/31/2019853-174-1,60140N/A
12/31/201898-138-1,078-26N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CD's forecast earnings growth (25.6% per year) is above the savings rate (2.2%).

Earnings vs Market: CD's earnings (25.6% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: CD's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CD's revenue (15.7% per year) is forecast to grow faster than the US market (8.1% per year).

High Growth Revenue: CD's revenue (15.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CD's Return on Equity is forecast to be low in 3 years time (10%).

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/12/20 01:18
End of Day Share Price 2023/12/18 00:00
Earnings2023/06/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Chindata Group Holdings Limited is covered by 6 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ang-Chi LinCitigroup Inc
Yu Jang LaiCitigroup Inc
Tina HouGoldman Sachs