Sunevision Holdings Ltd. (1686) AI Stock Analysis

• Market Cap: HK$15.53B
• Dividend Yield: 1.84%
• Average Volume (3M): 11.84M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.02
• Revenue Growth: 12.91%
• EPS Growth: 5.31%
• Country: HK
• Employees: 452
• Sector: Real Estate
• Sector Strength: 76
• Industry: Real Estate
• EPS (TTM): 0.41
• Shares Outstanding: 2,357,040,300
• 10 Day Avg. Volume: 9,956,226
• 30 Day Avg. Volume: 11,844,077
• PEG Ratio: 3.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$12.18
• Price Target Upside: 84.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Sunevision Holdings Ltd. shows strong financial performance with robust revenue growth and profitability, though high leverage and capital expenditures present potential risks. The technical analysis indicates mixed momentum with some bearish signals. Valuation appears reasonable with a fair P/E ratio and a modest dividend yield. Overall, the stock is positioned moderately in the real estate market, with financial strength being a key highlight.

Positive Factors

AI demand

Sunevision is a key beneficiary of rising AI inferencing demand in Hong Kong, justifying a higher target multiple of 28x 12m EV/EBITDA compared to global peers trading at 23x.

Dividend growth

Expect dividends to rise with a 14% CAGR from FY6/24 to FY6/27F, supported by an improving growth profile and a declining CAPEX trend, generating sufficient free cash flow to pay dividends.

Market share

SuneVision's market share in Hong Kong is expected to rise from around 22% to approximately 26% in terms of available IT capacity.

Negative Factors

Pricing pressure

Excessive construction of data centres in the market could lead to pricing pressure.

Sunevision Holdings Ltd. Business Overview & Revenue Model

Company Description

Sunevision Holdings Ltd. (1686) is a leading data center service provider in Hong Kong, operating under the SUNeVision brand. The company specializes in providing colocation, cloud connectivity, and managed services to a diverse clientele, including multinational corporations, financial institutions, and technology companies. Its flagship data centers, MEGA-i, MEGA Plus, and MEGA Two, are strategically located to offer robust infrastructure and connectivity solutions, supporting the digital transformation of businesses in the region.

How the Company Makes Money

Sunevision Holdings Ltd. generates revenue primarily through its data center operations, which include colocation services where customers rent space, power, and cooling for their servers and other computing hardware. The company also earns income by offering cloud connectivity services that enable businesses to connect to various cloud platforms efficiently. Additionally, Sunevision provides managed services, including technical support and infrastructure management, which add value to its core offerings. Strategic partnerships with major telecommunications providers and cloud service operators enhance its service portfolio, contributing to the company's revenue growth.

Sunevision Holdings Ltd. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.67B	2.35B	2.09B	1.87B	1.71B
	Gross Profit
1.41B	1.32B	1.20B	1.10B	991.84M
	EBIT
1.26B	1.17B	1.04B	960.33M	856.03M
	EBITDA
1.86B	1.70B	1.50B	1.36B	1.19B
	Net Income Common Stockholders
907.19M	905.37M	846.83M	787.73M	783.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
498.74M	237.28M	309.67M	387.32M	401.95M
	Total Assets
24.07B	20.78B	18.14B	16.47B	15.18B
	Total Debt
16.60B	13.75B	11.90B	10.57B	9.12B
	Net Debt
16.10B	13.52B	11.59B	10.18B	8.72B
	Total Liabilities
18.95B	16.12B	13.55B	12.02B	10.86B
	Stockholders Equity
5.12B	4.65B	4.58B	4.44B	4.31B
Cash Flow		Free Cash Flow
-1.39B	-472.33M	-415.25M	-552.28M	238.77M
	Operating Cash Flow
1.59B	1.47B	1.33B	1.27B	1.18B
	Investing Cash Flow
-2.96B	-1.94B	-1.74B	-1.82B	-1.38B
	Financing Cash Flow
1.64B	394.31M	336.67M	536.78M	140.12M

Sunevision Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1686, the sentiment is Positive. The current price of 6.59 is above the 20-day moving average (MA) of 6.16, below the 50-day MA of 7.31, and above the 200-day MA of 4.54, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1686.

Sunevision Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	76 Outperform	$1.38T	51.70	13.43%	―	32.62%	32.85%
0763	74 Outperform	HK$154.95B	12.75	11.39%	2.87%	-2.65%	-14.96%
2318	72 Outperform	$926.38B	6.69		5.29%	11.71%	37.04%
1686	65 Neutral	HK$15.53B	16.13	19.23%	1.84%	12.91%	5.31%
2382	65 Neutral	$74.11B	25.22	11.45%	0.34%	18.80%	142.93%
0772	64 Neutral	$27.83B	27.55	-1.14%	―	13.74%	-125.64%
Sector *	60 Neutral	$2.79B	11.37	0.20%	8519.74%	6.07%	-14.95%

Sunevision Holdings Ltd. Corporate Events

Sunevision Holdings Announces Board Restructuring

Sunevision Holdings Ltd. has announced several changes to its board of directors, effective from April 15, 2025. Ms. Fiona Lau has resigned as a Non-Executive Director to focus on her role at SmarTone Telecommunications Holdings Limited. Professor Jack Lau has been re-designated from an Independent Non-Executive Director to a Non-Executive Director, and Dr. Jane Chan has been appointed as an Independent Non-Executive Director and a member of the Nomination Committee. These changes reflect the company’s ongoing adjustments in leadership to align with its strategic goals.

SUNeVision Holdings Ltd. Announces Board and Committee Roles

SUNeVision Holdings Ltd. has announced the list of its board of directors and their roles, including executive, non-executive, and independent non-executive directors. The announcement also details the composition of the company’s Audit, Remuneration, and Nomination Committees, which is crucial for stakeholders to understand the governance structure and decision-making processes within the company.

Sunevision Holdings Ltd. Reports Strong Revenue Growth Amidst Robust Data Center Demand

Sunevision Holdings Ltd. reported a 14% increase in revenue for the six months ending December 2024, driven by new data centers and steady growth from existing sites. The commissioning of MEGA IDC Phase One contributed significantly, enhancing EBITDA by 17% and profit by 11%. Despite higher interest costs, the company maintained strong cash inflows and capitalized on the growing demand for AI-driven applications and resilient data center services, positioning itself as a preferred choice for cloud and AI customers in Hong Kong.

SUNeVision Holdings Schedules Board Meeting for Interim Results

SUNeVision Holdings Ltd. has announced an upcoming board meeting on February 25, 2025, to approve its interim results for the six months ended December 31, 2024, and to discuss the potential declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders, including investors and market analysts.