SUNeVision (1686) H2 25/26 earnings summary

Executive summary

• Recurring revenue from data centre and IT facilities grew 8% year-over-year, reaching HK$2,856 million, with total revenue up 6% to HK$3,117 million, driven by new facilities, organic growth, and positive rental reversions.

• EBITDA increased 8% to HK$2,300 million, with margins expanding from 72% to 74%, reflecting operational efficiency and premium pricing.

• Net profit attributable to shareholders rose 17% year-over-year to HK$1,146 million, supported by strong operating performance, lower borrowing costs, and operating leverage.

• Major customer win at MEGA IDC Phase 1 increased IT capacity from 105MW to 130MW, with occupancy jumping from ~30% to over 70%.

• Proposed dividend of HK14.00 cents per share, up 17% year-over-year, with a payout ratio of approximately 50%.

Financial highlights

• Total recurring revenue reached ~HK$2,856 million, up 8% year-over-year, driven by new site ramp-ups and positive rental reversions.

• EBITDA margin expanded to 74%, and NPAT margin rose to 39% due to lower borrowing costs.

• Operating cash inflow increased 9% year-over-year to HK$2,240 million, demonstrating high cash conversion.

• Finance costs dropped 24% to HK$256 million due to a favorable interest rate environment.

• Earnings per share rose to 28.07 cents (basic) from 24.09 cents.

Outlook and guidance

• Strong demand for high-density AI and cloud infrastructure is expected to continue, with rapid absorption of available capacity and scarcity for premium space.

• Confident in rapidly filling MEGA IDC Phases Two & Three, targeting RFS by 2028, and evaluating further strategic growth opportunities.

• Focus remains on disciplined growth, prioritizing long-term, sustainable deployments and premium tenants.

• Dividend policy remains reliable, balancing capital deployment for growth with disciplined returns.

• The company is committed to investing in Hong Kong’s digital infrastructure and maintaining its position as a leading data hub.