SUNeVision (1686) H2 24/25 earnings summary

Executive summary

• Revenue grew 10% YoY to HK$2,938mn, driven by strong demand for data centre and IT facilities, especially from AI and cloud-related customers.

• EBITDA increased 15% YoY to HK$2,128mn, with margin improving to 72% due to operational efficiency and cost discipline.

• Net profit rose 8% YoY to HK$979mn, despite higher finance costs from reduced interest capitalisation.

• MEGA IDC Phase One, Hong Kong's largest hyperscale data centre by power capacity, was launched and well received.

• Final dividend of HK12.00 cents per share recommended, up 7% YoY, with a payout ratio of approximately 50%.

Financial highlights

• Revenue: HK$2,938mn (+10% YoY); Data centre and IT facilities revenue: HK$2,720mn (+11% YoY).

• EBITDA: HK$2,128mn (+15% YoY); EBITDA margin: 72% (up from 69%).

• Net profit: HK$979mn (+8% YoY); Operating profit: HK$1,502mn (+17% YoY).

• Operating cash inflow increased 23% YoY to HK$2,063mn.

• Earnings per share: 24.09 cents (basic and diluted).

Outlook and guidance

• Strong pipeline for existing and new facilities, especially for AI-related applications.

• Demand for data centre capacity in Hong Kong expected to remain robust, driven by AI inference workloads and cloud expansion.

• Capital expenditure to be managed on an agile, on-demand basis, with space delivery within 4-6 months of order.

• Continued focus on ESG, energy efficiency, and sustainability, with progress toward carbon neutrality.

• Near-term geopolitical and macroeconomic uncertainties persist, but just-in-time delivery and disciplined CAPEX ensure agility.