Goldman Sachs has released a research note indicating an upward revision to its revenue and EBITDA forecasts for SUNEVISION for fiscal years 2027 through 2029, citing better-than-expected results, updated move-in timelines, new contract premium pricing, and rental adjustments. The firm has raised its price target from HK$5.4 to HK$6, while maintaining a “Neutral” rating. The revised forecasts reflect a 1% to 5% increase in revenue projections and a 1% to 6% uplift in EBITDA estimates, partially offset by lower assumed capacity additions.
The company's performance for the second half of fiscal year 2026, ending June 30, surpassed expectations. Total revenue grew 10% year-over-year to HK$1.609 billion, exceeding Goldman Sachs and market consensus estimates by 4% and 1%, respectively. This growth was driven by capacity ramp-up at MEGA IDC and MEGA Two, along with favorable rental revisions and contract escalations from key financial and corporate clients.
Recurring revenue from data centers and IT facilities rose 10% year-over-year. EBITDA increased 12% to HK$1.204 billion, surpassing the firm's and market projections by 7% and 5%. Net profit climbed 24% to HK$614 million, exceeding both Goldman Sachs and consensus estimates by over 10%. The gross margin reached 60.3%, up 3.2 percentage points year-over-year, also exceeding expectations.
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