Sunevision Holdings Ltd. (1686) AI Stock Analysis

• Market Cap: HK$15.16B
• Dividend Yield: 2.54%
• Average Volume (3M): 6.23M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.12
• Revenue Growth: 9.90%
• EPS Growth: 7.68%
• Country: HK
• Employees: 518
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.13
• Shares Outstanding: 2,361,959,200
• 10 Day Avg. Volume: 3,946,178
• 30 Day Avg. Volume: 6,231,685
• PEG Ratio: 2.35
• Price to Book (P/B): 3.07
• Price to Sales (P/S): 6.03
• P/FCF Ratio: 26.14
• 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$8.43
• Price Target Upside: 77.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.27
• Revenue Forecast (FY): HK$3.12B

• Rating: 67 Neutral
• Price Target: HK$6.50 ▲(36.55% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong profitability, tempered by high leverage and a sharp deterioration in free cash flow. Technicals are favorable with the stock trading above major moving averages and positive momentum. Valuation is reasonable on earnings but offers only a modest dividend yield.

Positive Factors

Recurring, carrier‑neutral data‑centre model

Sunevision's core business is recurring colocation, power and connectivity fees from carrier‑neutral data centres, creating sticky, contract‑based revenue. That recurring cash flow profile supports stable utilization, easier forecasting and long‑term customer retention across cycles.

High and sustainable operating margins

Consistently high gross, EBIT and EBITDA margins indicate strong operating leverage, pricing power and efficient fixed‑cost absorption in data‑centre operations. Durable margin structure supports reinvestment capacity and returns even if revenue growth is moderate.

Consistent top‑line growth and healthy ROE

Modest but steady revenue expansion alongside a healthy return on equity implies disciplined capital deployment and demand for capacity. Steady revenue plus attractive ROE supports sustainable cash generation and potential to fund selective expansion or upgrades over time.

Negative Factors

High financial leverage

A debt-to-equity near 3x and low equity ratio raise refinancing and interest coverage risk, reducing financial flexibility for capex or downturns. Elevated leverage makes the firm more sensitive to rate rises and limits capacity to pursue opportunistic investments without increasing stress on cash flow.

Severe deterioration in free cash flow

A sharp FCF decline and OCF below net income indicate weak cash conversion and potential working capital or capex pressure. Persistently poor cash generation undermines debt servicing, dividend sustainability, and ability to self‑fund capacity expansion over the medium term.

Earnings pressure and EPS decline

Negative EPS growth combined with a slipping net margin signals operational or pricing headwinds that could constrain retained earnings. Continued earnings contraction would limit internal funding, weaken investor confidence, and make balance‑sheet repairs more difficult over multiple quarters.

Sunevision Holdings Ltd. Business Overview & Revenue Model

Company Description

SUNeVision Holdings Ltd., an investment holding company, provides data center business in Hong Kong. The company is involved in the provision of facilities management and value-added services. It also engages in the design, installation, operation, laying, and cabling of extra-low voltage and information technology systems, as well as building access, voice, data, power supply systems and network, and other infrastructure networks; and provision of related repair and maintenance services. In addition, the company offers IT and optical fiber network, and related maintenance services; treasury services; and financing, management, and company secretary services. Further, it is involved in property and trademark holding activities. The company is headquartered in Kwun Tong, Hong Kong. SUNeVision Holdings Ltd. is a subsidiary of Sunco Resources Limited.

How the Company Makes Money

The company mainly makes money by operating data centres and charging customers for using its facilities and related services. Key revenue streams typically include: (1) Colocation and hosting-related fees: recurring charges for renting space (e.g., racks/cages/suites) within its data centres to house customers’ servers and network equipment. (2) Power and cooling charges: fees tied to electricity consumption and the provision of stable power distribution, backup power, and cooling capacity, often structured as recurring charges based on contracted power capacity and/or actual usage. (3) Connectivity and interconnection services: charges for cross-connects and access to a dense ecosystem of network operators, cloud platforms, and internet exchanges within its carrier-neutral facilities, which can generate recurring fees per connection/port and support customer retention. (4) Managed or value-added services (if offered in specific contracts): services associated with operating customers’ deployments in the data centre environment (e.g., remote hands/support), usually billed as recurring service fees and/or one-off project fees. Earnings are influenced by data-centre utilization/occupancy, contracted power capacity, pricing, and the ability to attract and retain enterprises, cloud/service providers, and network carriers into its interconnection ecosystem. Specific named partnerships and their financial contribution: null.

Sunevision Holdings Ltd. Financial Statement Overview

Summary

Strong profitability (2025 gross margin 56.67%, net margin 33.33%, EBIT margin 49.83%, EBITDA margin 71.55%) supports results, but financial risk is elevated due to high leverage (debt-to-equity 2.95, equity ratio 23.20%) and weakening cash generation (free cash flow growth -204.64%, operating cash flow to net income 0.48).

Income Statement

Sunevision Holdings Ltd. has shown consistent revenue growth over the years, with a recent growth rate of 2.96% in 2025. The company maintains strong profitability with a gross profit margin of 56.67% and a net profit margin of 33.33% in 2025. The EBIT and EBITDA margins are also robust at 49.83% and 71.55%, respectively. However, the net profit margin has slightly decreased from previous years, indicating some pressure on net income growth.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 2.95 in 2025, indicating significant leverage. While the return on equity is healthy at 16.96%, the high leverage poses a risk. The equity ratio stands at 23.20%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Sunevision Holdings Ltd. experienced a significant decline in free cash flow growth, with a rate of -204.64% in 2025. The operating cash flow to net income ratio is 0.48, indicating that operating cash flow is less than net income, which could be a concern for cash generation. The free cash flow to net income ratio is 0.36, showing some ability to convert net income into free cash flow, but the negative growth trend is worrying.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.94B	2.67B	2.35B	2.09B	1.87B
Gross Profit	1.67B	1.41B	1.32B	1.20B	1.10B
EBITDA	2.10B	1.86B	1.70B	1.50B	1.36B
Net Income	979.41M	907.19M	905.37M	846.83M	787.73M
Balance Sheet
Total Assets	24.90B	24.07B	20.78B	18.14B	16.47B
Cash, Cash Equivalents and Short-Term Investments	423.60M	498.74M	237.28M	309.67M	387.32M
Total Debt	17.02B	16.60B	13.75B	11.90B	10.57B
Total Liabilities	19.12B	18.95B	16.12B	13.55B	12.02B
Stockholders Equity	5.78B	5.12B	4.65B	4.58B	4.44B
Cash Flow
Free Cash Flow	678.39M	-1.39B	-472.33M	-415.25M	-552.28M
Operating Cash Flow	1.87B	1.59B	1.47B	1.33B	1.27B
Investing Cash Flow	-1.18B	-2.96B	-1.94B	-1.74B	-1.82B
Financing Cash Flow	-766.89M	1.64B	394.31M	336.67M	536.78M

Sunevision Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 4.76 is below the 20-day moving average (MA) of 6.38, below the 50-day MA of 6.12, and below the 200-day MA of 6.43, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 28.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	HK$17.91B	4.67	15.52%	4.43%	6.54%	3.26%
2869	70 Outperform	HK$13.08B	5.12	11.53%	2.78%	-0.95%	14.89%
1686	67 Neutral	HK$15.16B	8.84	17.69%	2.54%	9.90%	7.68%
6098	66 Neutral	HK$20.10B	5.03	3.73%	4.94%	7.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2602	58 Neutral	HK$22.24B	7.01	7.08%	1.77%	5.75%	-31.63%
6666	51 Neutral	HK$12.11B	4.44	125.72%	―	4.74%	-21.33%

Sunevision Holdings Ltd. Corporate Events

SUNeVision Details Board Composition and Governance Committees

SUNeVision Holdings has announced the current composition of its board of directors, detailing the mix of executive, non-executive and independent non-executive directors, including Raymond Kwok as chairman and Allen Fung as vice chairman. The company also set out the membership of its audit, remuneration and nomination committees, signaling its corporate governance structure and oversight framework for stakeholders and regulators.

The updated listing of directors and committee roles underscores SUNeVision’s emphasis on independent oversight through multiple independent non-executive directors on key committees. This governance disclosure may help reinforce investor confidence and transparency as the company navigates its strategic and operational decisions in the competitive data infrastructure industry.

The most recent analyst rating on (HK:1686) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Sunevision Holdings Ltd. stock, see the HK:1686 Stock Forecast page.

Sunevision COO and Executive Director Martin Chan to Retire in 2026

Sunevision Holdings Ltd., a Hong Kong-listed operator of technology and data-centre-related infrastructure, is overseen by a broad board that includes executive, non-executive and independent non-executive directors. Its governance structure reflects the needs of a mission-critical infrastructure provider, where strategic oversight and risk management are central to supporting long-term, capital-intensive operations.

The company announced that Executive Director and Chief Operating Officer Chan Man-yuen, Martin will retire from his roles with effect from 27 February 2026 to devote more time to personal commitments. Sunevision emphasized that Chan has no disagreement with the board and that there are no issues requiring shareholder attention, suggesting the move is not expected to signal underlying governance disputes, though investors may still monitor how his responsibilities are redistributed within the senior management team.

The most recent analyst rating on (HK:1686) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Sunevision Holdings Ltd. stock, see the HK:1686 Stock Forecast page.

Sunevision Profit Climbs on Strong Data Centre Demand and AI-Driven Connectivity Growth

Sunevision Holdings reported resilient interim results for the six months ended 31 December 2025, with recurring revenue from data centre and IT facilities rising 7% to HK$1,377 million and total revenue up 3% to HK$1,508 million. EBITDA increased 4% to HK$1,096 million and margin improved to 73%, while profit attributable to shareholders climbed 10% to HK$531 million, supported by operating leverage, lower borrowing costs and strong operating cash generation.

Management highlighted a notable pickup in demand for premium data centre capacity in Hong Kong from both international and Chinese hyperscalers, which, together with power upgrades for existing clients and positive rental reversions, is driving solid organic growth. The group’s MEGA-i facility continued to strengthen its role as a key connectivity hub for Mainland China–global data flows, and Sunevision sees its dense interconnection ecosystem as a structural advantage in capturing rising AI inference and enterprise AI workloads that require low-latency, highly connected digital infrastructure.

The most recent analyst rating on (HK:1686) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Sunevision Holdings Ltd. stock, see the HK:1686 Stock Forecast page.

SUNeVision Secures HK$3 Billion Revolving Loan Tied to SHKP Control Covenant

SUNeVision Holdings’ wholly owned unit Grandwide Development has secured a revolving loan facility of up to HK$3 billion from The Hongkong and Shanghai Banking Corporation, with SUNeVision acting as guarantor. The nearly three-year facility will be used to refinance existing borrowings and support the group’s general working capital, strengthening its liquidity profile.

The loan terms include a covenant requiring controlling shareholder Sun Hung Kai Properties to maintain at least a 51% stake and control in SUNeVision, or risk triggering an event of default. If that threshold is breached, the lender may cancel remaining commitments and demand immediate repayment, underscoring the financing’s reliance on SHKP’s backing and the need for ongoing disclosure under Hong Kong listing rules.

The most recent analyst rating on (HK:1686) stock is a Hold with a HK$7.50 price target. To see the full list of analyst forecasts on Sunevision Holdings Ltd. stock, see the HK:1686 Stock Forecast page.

SUNeVision Sets February Board Meeting to Approve Interim Results and Consider Dividend

SUNeVision Holdings has scheduled a board meeting for 25 February 2026 to review and approve the interim results for the six months ended 31 December 2025, authorize their publication, and consider whether to declare an interim dividend. The meeting signals an upcoming update on the company’s financial performance and potential shareholder returns, with any dividend decision likely to be closely watched by investors as an indicator of earnings strength and management’s confidence in the business outlook.

The most recent analyst rating on (HK:1686) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Sunevision Holdings Ltd. stock, see the HK:1686 Stock Forecast page.