Sunevision Holdings Ltd. (1686) AI Stock Analysis

• Market Cap: HK$14.27B
• 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$7.50 ▲(57.56% 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

High profitability margins

Sunevision’s very high gross, EBIT and EBITDA margins reflect strong pricing power and operating leverage in colocation and interconnection services. Durable margins provide capacity to reinvest in capacity, sustain returns and absorb cyclical demand swings in a capital-intensive industry.

Carrier‑neutral data‑centre model

A carrier-neutral colocation and dense interconnection ecosystem creates sticky, recurring revenue from power, space and cross-connects. This structural network effect attracts cloud, telco and content customers and supports long-term occupancy, pricing resilience and cross-sell opportunities.

Consistent revenue growth trend

Steady revenue expansion, even if moderate, indicates ongoing demand for colocation and connectivity. In a fixed‑cost heavy business like data centres, consistent top‑line growth supports higher utilization, margin sustainability and the economics of additional capacity investments over time.

Negative Factors

High leverage

A debt-to-equity near 3.0 signals material financial leverage for a capital‑intensive operator. High leverage raises refinancing and interest‑rate risk, constrains discretionary investment, and reduces resilience to demand shocks or higher capex needs for power and capacity expansion.

Sharp deterioration in free cash flow

A large negative FCF growth rate indicates the firm is generating far less free cash than before, which is critical in a capex-heavy sector. Persistently weak FCF can force external financing, limit debt paydown and slow capacity upgrades necessary to retain large cloud and carrier customers.

Weak cash conversion

Operating cash flow covering less than half of reported net income and low FCF-to-income show earnings aren’t converting to cash efficiently. For a business needing steady cash for maintenance capex and power infrastructure, weak conversion undermines financial flexibility and dividend/capex plans.

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

Sunevision generates revenue primarily through its data center services, which include hosting, cloud services, and managed IT solutions. The company charges clients based on factors such as space utilization, bandwidth consumption, and additional services like backup and disaster recovery. Key revenue streams also include leasing data center space and offering customized IT infrastructure solutions. Significant partnerships with technology firms and telecommunications providers enhance its service offerings and attract a broader customer base, further boosting its earnings. Additionally, the growing demand for digital and cloud-based services amid increased data usage contributes to Sunevision's financial performance.

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 6.47, below the 50-day MA of 6.06, and below the 200-day MA of 6.43, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 43.00 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$17.72B	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$14.27B	8.84	17.69%	2.54%	9.90%	7.68%
6098	66 Neutral	HK$20.33B	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$22.52B	7.01	7.08%	1.77%	5.75%	-31.63%
6666	51 Neutral	HK$12.22B	4.44	125.72%	―	4.74%	-21.33%

Sunevision Holdings Ltd. Corporate Events

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.

Sunevision Holdings Ltd. Announces Key Executive Appointments

Sunevision Holdings Ltd. has announced the appointments of Ms. Helen Lo as an Executive Director and Mr. Kenny Lam as an Independent Non-Executive Director, effective from November 28, 2025. These appointments are expected to enhance the company’s strategic direction and governance. Ms. Lo brings extensive experience from her previous roles at Tencent and SHKP, while Mr. Lam offers a wealth of expertise from his leadership roles in financial institutions and law firms. These strategic appointments are likely to strengthen Sunevision’s market position and operational capabilities.

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 Holdings Ltd. Announces Board and Committee Roles

SUNeVision Holdings Ltd. has announced the composition of its board of directors and the roles of each member, including executive, non-executive, and independent non-executive directors. The announcement also details the members of the company’s Audit, Remuneration, and Nomination Committees. This update is crucial for stakeholders as it outlines the leadership structure that will steer the company’s strategic direction and governance.

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 Holdings Announces Forfeiture of Unclaimed Dividends

SUNeVision Holdings Ltd. has announced the forfeiture of unclaimed dividends declared on September 6, 2019, which remain unclaimed by December 29, 2025. Shareholders are advised to claim their dividends by the specified date to avoid forfeiture, which will result in the dividends reverting to the company.

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.