<Results First Take> SUNeVision (1686 HK) – FY6/22 earnings grew by 9%, in-line; further increase in pre-commitment rate
- Revenue increased by 11% y-o-y to HK$2,086m, with revenue from data centre and IT facilities business up by 11% y-o-y to HK$1,940m
- Net profit (excl. Covid related subsidies) increased by 9% y-o-y to HK$841m in FY6/22, in line with market expectations
- MEGA Gateway’s pre-commitment rate increased from 35% to 60%; MEGA IDC received strong interest from multiple cloud players
- We currently rate BUY on the counter with TP of HK$13.3
What’s New
– SUNeVision (1686 HK) announced its FY6/22 full year results on 1 Sep 2022 after market close.
– Revenue increased by 11% y-o-y to HK$2,086m in FY6/22, with revenue from data centre and IT facilities business up by 11% to HK$1,940m.
– Gross profit increased by 9% y-o-y to HK$1,201m, with gross margin contracting 1.3ppt to 58.9% due to higher depreciation charges and operating costs.
– EBITDA (excl. Covid related subsidies) increased by 11% y-o-y to HK$1,495m, with the margin down by 0.5ppt to 71.9%.
– Net profit (excl. Covid related subsidies) increased by 9% y-o-y to HK$841m, slower than EBITDA growth mainly due to increase in finance cost.
– The company proposed final DPS of HK20.8cents, representing 100% payout ratio.
– Total planned power capacity remained unchanged at 280MW.
Our View:
– Expect neutral share price reaction on this set of in-line results.
– Construction of MEGA Gateway and phase 1 of MEGA IDC are on track, which are targeted to be in service in 2H22 and 1H23 respectively. This will support revenue growth in the next 1-2 years.
– We currently rate BUY on the counter with TP of HK$13.3.
– Analyst conference call will be held at 9am HK Time on 2 Sep 2022.