Sunevision Holdings Ltd. (1686) AI Stock Analysis

• Market Cap: €18.79B
• Dividend Yield: 1.41%
• Average Volume (3M): 7.78M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.04
• Revenue Growth: 12.91%
• EPS Growth: 5.31%
• Country: HK
• Employees: 518
• Sector: Real Estate
• Sector Strength: 61
• Industry: Real Estate - Services
• EPS (TTM): 0.12
• Shares Outstanding: 2,360,514,400
• 10 Day Avg. Volume: 9,068,257
• 30 Day Avg. Volume: 7,781,143
• PEG Ratio: 7.37
• Price to Book (P/B): 5.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.43
• 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: €8.53
• Price Target Upside: 7.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: HK$9.00 ▲(13.21%Upside)

Sunevision Holdings Ltd. is well-positioned in the real estate services industry, with strong financial performance highlighted by revenue growth and profitability. Positive technical momentum further supports the stock's outlook. However, the high debt-to-equity ratio presents a leverage risk that should be monitored. Valuation appears fair, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

AI Demand

Sunevision is well-positioned to capture the burgeoning AI demand in Hong Kong, benefiting from abundant power provision by power companies, which is a clear competitive advantage over its rivals.

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.

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 provider of data center services in Hong Kong. As a subsidiary of Sun Hung Kai Properties, the company focuses on the development and operation of data centers that support cloud-based computing, data storage, and internet connectivity services. Sunevision's core offerings include colocation services, managed services, and network services, which cater to the needs of enterprises, telecom operators, and cloud service providers.

How the Company Makes Money

Sunevision Holdings Ltd. generates revenue primarily through its data center services, which include colocation, managed services, and network services. Colocation services involve leasing server space to clients who require secure and reliable infrastructure to house their IT equipment. Managed services provide additional support such as remote hands and technical assistance. Network services offer robust connectivity options, enabling clients to connect their systems seamlessly. The company's strategic location in Hong Kong, a major financial and technological hub, enhances its appeal to international clients seeking regional data solutions. Sunevision also benefits from strong partnerships with telecommunications companies and cloud service providers, which contribute significantly to its revenue growth.

Sunevision Holdings Ltd. Financial Statement Overview

Summary

Sunevision Holdings Ltd. demonstrates strong revenue growth and profitability with robust margins. The balance sheet shows a high debt-to-equity ratio, suggesting leverage risk, but the equity base is stable with a decent ROE. Cash flow generation is strong, though high capital expenditures have led to negative free cash flow.

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	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
EBITDA	1.86B	1.70B	1.50B	1.36B	1.19B
Net Income	907.19M	905.37M	846.83M	787.73M	783.25M
Balance Sheet
Total Assets	24.07B	20.78B	18.14B	16.47B	15.18B
Cash, Cash Equivalents and Short-Term Investments	498.74M	237.28M	309.67M	387.32M	401.95M
Total Debt	16.60B	13.75B	11.90B	10.57B	9.12B
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: 7.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 7.95 is above the 20-day moving average (MA) of 7.70, above the 50-day MA of 7.23, and above the 200-day MA of 5.73, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 55.65 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$19.89B	12.36	16.04%	0.13%	6.53%	4.78%
1686	76 Outperform	€18.79B	19.48	19.23%	1.41%	12.91%	5.31%
2869	73 Outperform	HK$15.35B	20.61	8.94%	2.67%	1.01%	12.45%
6098	68 Neutral	$23.00B	11.72	4.96%	0.33%	1.31%	379.84%
2602	66 Neutral	HK$27.51B	22.27	6.76%	4.83%	7.13%	-42.14%
6666	58 Neutral	HK$8.86B	8.01	2935.68%	―	0.27%	-35.07%
Sector *	54 Neutral	$1.23B	3.75	0.67%	6.15%	-2.39%	-129.28%

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.