SUNeVision Holdings Limited (01686) released its interim results for the six months ended 31 December 2025, highlighting steady top-line growth and improved profitability driven by sustained demand from hyperscale and connectivity customers.
Financial Performance • Revenue rose 3.0% year on year to HK$1.51 billion, underpinned by a 7% increase in recurring data-centre and IT facilities income to HK$1.38 billion. • Gross profit expanded 3.7% to HK$857.61 million; gross margin edged up to 56.9%. • EBITDA grew 4.1% to HK$1.10 billion, with margin improving from 72% to 73%. • Operating expenditure climbed 16% to HK$97.15 million, largely reflecting network and capacity expansion. • Finance costs fell 25% to HK$128.38 million, benefiting from lower interest rates. • Profit attributable to shareholders reached HK$531.03 million, a 9.7% increase; basic earnings per share rose to HK13.01 cents (1H FY25: HK11.92 cents).
Cash Flow and Balance Sheet • Net cash generated from operations (before working-capital movements) advanced 4.5% to HK$1.03 billion. • Cash and equivalents stood at HK$449.08 million; net bank borrowings totalled HK$11.69 billion. • Undrawn committed facilities amounted to HK$2.40 billion at period-end; an additional HK$3.00 billion revolving facility was secured in February 2026. • Adjusted gearing ratio (excluding shareholder loans) was 32%, rising to 45% when the HK$5.00 billion shareholder loan is included.
Operational Highlights • MEGA-i strengthened its position as Hong Kong’s primary connectivity hub, exceeding 15,000 cross-connects and accommodating new subsea cable landings. • MEGA Plus and MEGA Two remained effectively fully occupied; power-upgrade discussions are ongoing with existing clients. • MEGA Gateway reached 90% utilisation of deployed capacity, while efforts continue to expand its role as a connectivity extension of MEGA-i. • Phase 1 of the flagship MEGA IDC in Tseung Kwan O—offering 50 MW across roughly 500,000 square feet—commenced operations in early 2024, supporting high-density AI workloads. Full build-out will lift total group capacity above 280 MW. • New ELV and IT contracts worth HK$65 million were secured during the period, with segment revenue up 2% to HK$111 million.
Capital Expenditure and Sustainability • SUNeVision continues to align capital spending with secured demand, targeting four-to-six-month delivery cycles for new capacity. • Sustainability initiatives include a six-year renewable energy certificate agreement with CLP Power and multiple industry accolades, reinforcing progress toward its 2050 carbon-neutral goal.
Dividend No interim dividend was declared for the period. The company distributed a final dividend of HK12.00 cents per share in October 2025, totalling HK$489.69 million.
Outlook Management reports “marked increase” in hyperscale and AI-driven enquiries, particularly for high-density deployments at MEGA IDC and existing campuses. While maintaining a disciplined approach to capital allocation, SUNeVision cites ample liquidity and secured power access as competitive advantages in capturing emerging AI-related demand.
Comments