Sunevision Holdings Ltd. (1686) AI Stock Analysis

• Market Cap: HK$12.30B
• Dividend Yield: 2.54%
• Average Volume (3M): 6.23M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.04
• Revenue Growth: 9.90%
• EPS Growth: 7.68%
• Country: HK
• Employees: 518
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.12
• Shares Outstanding: 2,360,809,300
• 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$6.10
• Price Target Upside: 28.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$5.50 ▲(15.55% Upside)

The score is primarily supported by strong profitability, but is held back by leverage and notably weak free cash flow trends. Technicals are mixed with short-term support but a longer-term downtrend, while valuation provides a modest offset with a moderate P/E and a 2.30% dividend yield.

Positive Factors

High operating and net margins

Sunevision's very high gross, EBIT and net margins indicate structurally efficient data center operations and strong pricing power. Durable margins support reinvestment, dividend capacity and resilience to cost shocks, underpinning sustainable profitability over the midterm.

Leading market position in Hong Kong data centers

As a leading local data center provider serving enterprises, government and telcos, Sunevision benefits from diversified, sticky revenue streams and high barriers to entry. Long-term secular demand for cloud and colocation supports capacity utilization and pricing stability.

Consistent revenue growth

Ongoing top-line growth, driven by leasing, hosting and managed services, supports recurring revenue and scale economics. Stable revenue expansion helps absorb fixed data-center costs and underpins margin sustainability and long-term cash-generating potential.

Negative Factors

High financial leverage

A near-3x debt-to-equity ratio leaves limited financial flexibility and raises interest exposure. Elevated leverage increases refinancing and solvency risk during downturns, constrains strategic investments, and amplifies downside to equity holders over the medium term.

Severely declining free cash flow

A large negative FCF growth rate signals worsening ability to convert profits into spendable cash. Persistent FCF weakness undermines capacity to fund capex, repay debt, or sustain dividends without external financing, reducing long-term financial resilience.

Operating cash generation below net income

OCF materially below reported net income suggests earnings quality or working-capital pressure. If sustained, weak cash conversion limits internal funding for growth and debt servicing, making the business more reliant on external capital and increasing structural risk.

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

Sunevision Holdings Ltd. shows strong revenue growth and profitability with solid EBIT and EBITDA margins. However, high debt levels and declining free cash flow growth present potential risks. The company needs to manage its leverage carefully and focus on improving cash flow generation to sustain its financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.94B	2.94B	2.67B	2.35B	2.09B	1.87B
Gross Profit	1.67B	1.67B	1.41B	1.32B	1.20B	1.10B
EBITDA	1.89B	2.10B	1.86B	1.70B	1.50B	1.36B
Net Income	979.41M	979.41M	907.19M	905.37M	846.83M	787.73M
Balance Sheet
Total Assets	24.90B	24.90B	24.07B	20.78B	18.14B	16.47B
Cash, Cash Equivalents and Short-Term Investments	423.60M	423.60M	498.74M	237.28M	309.67M	387.32M
Total Debt	17.02B	17.02B	16.60B	13.75B	11.90B	10.57B
Total Liabilities	19.12B	19.12B	18.95B	16.12B	13.55B	12.02B
Stockholders Equity	5.78B	5.78B	5.12B	4.65B	4.58B	4.44B
Cash Flow
Free Cash Flow	678.39M	678.39M	-1.39B	-472.33M	-415.25M	-552.28M
Operating Cash Flow	1.87B	1.87B	1.59B	1.47B	1.33B	1.27B
Investing Cash Flow	-1.20B	-1.18B	-2.96B	-1.94B	-1.74B	-1.82B
Financing Cash Flow	36.03M	-766.89M	1.64B	394.31M	336.67M	536.78M

Sunevision Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1686, the sentiment is Neutral. The current price of 4.76 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 5.11, and below the 200-day MA of 6.41, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.23 is Neutral, neither overbought nor oversold. The STOCH value of 86.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$18.69B	11.35	15.94%	4.43%	6.54%	3.26%
2869	70 Outperform	HK$14.66B	17.08	10.30%	2.78%	-0.95%	14.89%
6098	66 Neutral	HK$21.00B	14.16	3.72%	4.94%	7.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1686	63 Neutral	HK$12.30B	12.48	18.68%	2.54%	9.90%	7.68%
2602	58 Neutral	HK$22.36B	17.62	7.08%	1.77%	5.75%	-31.63%
6666	51 Neutral	HK$12.65B	12.30	185.17%	―	4.74%	-21.33%

Sunevision Holdings Ltd. Corporate Events

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.

Sunevision Holdings Ltd. AGM Resolutions Passed with Strong Shareholder Support

Sunevision Holdings Ltd. announced that all resolutions proposed at its annual general meeting on October 31, 2025, were approved by shareholders. Key resolutions included the approval of financial statements, the declaration of a final dividend, the re-election of directors, and the reappointment of Deloitte Touche Tohmatsu as auditor. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued stability and growth in the data center industry.

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.