Sunevision Holdings Ltd. (1686) AI Stock Analysis

• Market Cap: €16.94B
• Dividend Yield: 1.52%
• Average Volume (3M): 7.42M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.01
• Revenue Growth: 12.91%
• EPS Growth: 5.31%
• Country: HK
• Employees: 518
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): 0.12
• Shares Outstanding: 2,358,656,300
• 10 Day Avg. Volume: 5,637,241
• 30 Day Avg. Volume: 7,424,864
• PEG Ratio: 1.24
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.81
• 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: €12.25
• Price Target Upside: 54.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$9.00 ▲(13.35%Upside)

Sunevision Holdings Ltd. scores well due to strong financial performance and technical indicators, indicating healthy growth and operational efficiency. However, the high debt-to-equity ratio and moderate valuation metrics slightly temper the overall score. Absence of earnings call insights or corporate events does not affect the score significantly.

Positive Factors

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 Position

Sunevision is the biggest carrier-neutral data centre operator in Hong Kong, with a 22% market share in terms of available IT capacity.

Profitability

The company has the highest profitability globally, with approximately 70% EBITDA margin, higher than global peers.

Negative Factors

Market Competition

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

Sunevision Holdings Ltd. shows strong revenue growth, robust profit margins, and efficient operations. The high debt-to-equity ratio suggests potential leverage risk, although a stable equity base and decent ROE mitigate this. Positive operating cash flow indicates strong cash generation, but negative free cash flow due to high capital expenditures is a concern.

Income Statement

Sunevision Holdings Ltd. has shown strong revenue growth, increasing from HK$1.56 billion in 2019 to HK$2.67 billion in 2024, with a consistent upward trend. The gross profit margin remains robust, exceeding 50% each year, highlighting efficient cost management. Net profit margin is healthy, averaging around 35% over the years, indicating good profitability. The EBIT and EBITDA margins are also strong, reflecting solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has been relatively high, standing at approximately 3.25 in 2024, which could suggest potential leverage risk. However, the equity ratio has been stable around 20-25%, indicating a balanced capital structure. Return on equity (ROE) has been decent, hovering around 18-20%, demonstrating effective use of shareholder funds.

Cash Flow

Operating cash flow has been consistently positive, with a steady increase over the years, indicating strong cash generation capability. However, free cash flow has been negative in recent years due to high capital expenditures, which could be a concern if this trend continues. The operating cash flow to net income ratio is above 1, showing efficient conversion of net income into cash.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.85B	2.67B	2.35B	2.09B	1.87B	1.71B
Gross Profit	1.56B	1.41B	1.32B	1.20B	1.10B	991.84M
EBITDA	1.78B	1.86B	1.70B	1.50B	1.36B	1.19B
Net Income	955.74M	907.19M	905.37M	846.83M	787.73M	783.25M
Balance Sheet
Total Assets	24.69B	24.07B	20.78B	18.14B	16.47B	15.18B
Cash, Cash Equivalents and Short-Term Investments	516.87M	498.74M	237.28M	309.67M	387.32M	401.95M
Total Debt	17.41B	16.60B	13.75B	11.90B	10.57B	9.12B
Total Liabilities	19.53B	18.95B	16.12B	13.55B	12.02B	10.86B
Stockholders Equity	5.15B	5.12B	4.65B	4.58B	4.44B	4.31B
Cash Flow
Free Cash Flow	-648.30M	-1.39B	-472.33M	-415.25M	-552.28M	238.77M
Operating Cash Flow	1.55B	1.59B	1.47B	1.33B	1.27B	1.18B
Investing Cash Flow	-2.18B	-2.96B	-1.94B	-1.74B	-1.82B	-1.38B
Financing Cash Flow	798.26M	1.64B	394.31M	336.67M	536.78M	140.12M

Sunevision Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.94 is above the 20-day moving average (MA) of 7.41, above the 50-day MA of 6.81, and above the 200-day MA of 5.42, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 51.60 is Neutral, 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
6049	79 Outperform	HK$18.20B	11.31	16.04%	4.42%	6.53%	4.78%
1686	74 Outperform	€16.94B	17.57	19.23%	1.52%	12.91%	5.31%
2869	73 Outperform	HK$13.52B	18.24	8.94%	3.02%	1.01%	12.45%
2602	71 Outperform	HK$24.84B	19.97	6.76%	4.92%	7.13%	-42.14%
6098	68 Neutral	$21.83B	11.12	4.96%	0.36%	1.31%	379.84%
Sector *	65 Neutral	£989.01M	11.77	-0.08%	5.05%	10.32%	31.28%
6666	58 Neutral	HK$9.41B	8.20	2935.68%	―	0.27%	-35.07%

Sunevision Holdings Ltd. Corporate Events

SUNeVision Holdings Grants Over 21 Million Share Options to Key Personnel

SUNeVision Holdings Ltd. announced the grant of 21,790,000 share options to certain individuals under its share option scheme adopted in November 2022. This move is part of the company’s strategy to incentivize its directors, employees, and related entity participants, potentially enhancing their commitment and aligning their interests with the company’s growth objectives. The share options have a five-year exercise period with a structured vesting schedule, which could impact the company’s operational dynamics by fostering long-term engagement among key stakeholders.

The most recent analyst rating on (HK:1686) stock is a Buy with a HK$4.60 price target. To see the full list of analyst forecasts on Sunevision Holdings Ltd. stock, see the HK:1686 Stock Forecast page.

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.