Sunevision Holdings Ltd.: Strong Market Position and Growth Potential Justify Buy Rating

Analyst Sachin Mittal of DBS maintained a Buy rating on Sunevision Holdings Ltd. (VI6 – Research Report), retaining the price target of HK$9.30.

Sachin Mittal has given his Buy rating due to a combination of factors that highlight Sunevision Holdings Ltd.’s strong market position and growth potential. As the largest carrier-neutral data centre operator in Hong Kong, Sunevision holds a significant 22% market share, which is expected to increase as the company expands its IT capacity from 101MW to 170MW by FY6/27. This expansion is anticipated to drive a robust EBITDA growth of 16% CAGR from FY6/24 to FY6/27, supported by stable pricing from US-based hyperscalers.
Sachin Mittal also notes the company’s promising dividend outlook, projecting a 14% CAGR in dividends from FY6/24 to FY6/27, driven by an improving growth profile and a reduction in effective interest rates. Despite the recent stock rally, the valuation remains attractive, trading at approximately 19x 12-month forward EV/EBITDA, with a target price increase to HKD9.3. The stock’s valuation is justified when compared to global peers like Equinix and Digital Realty, which trade at similar multiples but with slower growth profiles.

According to TipRanks, Mittal is a top 100 analyst with an average return of 26.2% and a 77.12% success rate. Mittal covers the Technology sector, focusing on stocks such as Grab, Cognizant, and Zoom Video Communications.