SUNeVision (1686) H2 23/24 earnings summary

Executive summary

• Revenue increased 14% year-over-year to HK$2,674mn, driven by new and existing data centre sites, price increases, power upgrades, and early contributions from new data centres.

• EBITDA rose 10% YoY to HK$1,849mn; EBIT up 8% YoY to HK$1,266mn.

• Net profit remained flat at HK$907mn as higher operating profit was offset by increased interest costs.

• Board proposes a dividend of 11.2 cents per share, with a payout ratio of ~50% and a 3.6% yield; intention to maintain or increase payout next year.

• Strong demand from hyperscalers, banks, connectivity clients, and AI-driven requirements underpins growth.

Financial highlights

• Revenue from data centre and IT facilities rose 14% YoY to HK$2,461mn.

• Operating cash inflow increased 8% YoY to HK$1,671mn.

• EBITDA margin at 69%, diluted by ramp-up of new sites; NPAT margin decreased due to higher interest rates.

• Effective interest rate rose from 3.3% to 5.2% YoY.

• CAPEX peaked in FY24 for new site construction, expected to decline 10–20% per annum in coming years.

Outlook and guidance

• AI and cloud adoption are major catalysts for future data centre demand.

• Hong Kong remains a key international network hub, with strong connectivity business growth.

• Hyperscale demand outlook is robust, especially in Tseung Kwan O and ShaTin.

• Company is well-positioned to capture market opportunities, having passed peak CAPEX and interest rate cycles.

• Commitment to ESG initiatives, with new and existing data centres achieving LEED Gold and BEAM Plus certifications.