Results First Take: 1HFY6/22 results in-line while two future projects are delayed for service
- Net profit increased by 6% y-o-y to HK$410m in 1HFY6/22, in line with market expectations
- Revenue increased by 8% y-o-y to HK$995m, with revenue from data centre and IT facilities business up by 9% y-o-y to HK$935m
- EBITDA increased by 10% y-o-y to HK$728m due to improved economies of scale and cost efficiency
- Expect negative share price reaction as two data centre projects are delayed for service due to global supply chains and logistics issues
What’s New
– SUNeVision (1686 HK) announced its 1HFY6/22 interim results on 22 Feb 2022 after market close.
– Revenue increased by 8% y-o-y to HK$995m in 1HFY6/22, with revenue from data centre and IT facilities business up by 9% to HK$935m.
– Gross profit increased by 8% y-o-y to HK$585m, with gross profit margin remaining stable at 58.8%.
– EBITDA increased by 10% y-o-y to HK$728m, with margin up by 1.4ppts to 73.2% due to improved economies of scale and cost efficiency.
– Net profit increased by 6% y-o-y to HK$410m, slower than EBITDA growth due to higher depreciation charges from capacity expansion and rising finance cost from increased level of borrowings.
– MEGA Gateway (Tsuen Wan) and phase 1 MEGA IDC (Tseung Kwan O) is targeted to be in service in 2HCY22 and 1HCY23 respectively, which is delayed from 1HCY22 and 2HCY22 due to global supply chains and logistics issues.
– Total planned power capacity remained unchanged at 280MW.
Our View:
– Expect negative share price reaction due to the delay of service of MEGA Gateway and phase 1 of MEGA IDC.
– We currently rate BUY on the counter with TP of HK$14.0.
– Analyst conference call will be held at 9am HK Time on 23 Feb 2022.