SUNeVision Holdings Ltd. (1686.HK) Bundle
From a 2000 IPO at HK$10.38 to becoming Hong Kong's largest data‑centre operator, SUNeVision (1686.HK) has evolved into a market powerhouse: its 2025 results showed a 10% year‑on‑year revenue rise to HK$2,938 million, EBITDA up 15% to HK$2,128 million and net income of HK$979 million, while declaring a final dividend of HK$0.12 per share; a Sun Hung Kai Properties subsidiary with a market cap of HK$28.03 billion (as of 1 Oct 2025), SUNeVision drives value mainly through its MEGA Campus ecosystem - colocation services accounted for 92% of FY2024 sales and ELV/IT systems 8% - supporting hyperscale and AI deployments, maintaining an adjusted gearing of 44% (31% ex‑shareholder loans), averaging 5.54 million shares traded and a 52‑week price band of HK$3.58-HK$10.36, while reaching carbon‑neutral status for internal operations in 2025 and earning inclusion in the Hang Seng Corporate Sustainability Benchmark Index.
SUNeVision Holdings Ltd. (1686.HK): Intro
Founded in 2000 and publicly listed the same year, SUNeVision Holdings Ltd. (1686.HK) has grown from a local Internet and data services business into Hong Kong's largest carrier-neutral data centre operator and a leading provider of commercial Internet infrastructure. The company was originally listed on the Hong Kong Stock Exchange's Growth Enterprise Market with an IPO price of HK$10.38 per share and, reflecting its expansion in scale and business mix, transferred to the Main Board in 2018.- IPO: 2000 - HK$10.38 per share (Growth Enterprise Market)
- Main Board transfer: 2018
- Parent/major shareholder: Sun Hung Kai Properties (strategic controlling shareholder)
- Carrier‑neutral data centres (MEGA campus and other facilities) offering colocation, managed hosting, interconnection and cloud access services.
- Commercial Internet platforms, managed services and value-added connectivity solutions for enterprises, cloud service providers and carriers.
- Real estate and infrastructure partnerships enabling large-scale data centre campuses in Hong Kong and select APAC locations.
- Colocation services: customers rent rack, cage or suite space and power capacity (recurring revenue with long-term contracts).
- Interconnection and carrier hotels: cross-connects, Meet‑me‑Rooms and Internet exchanges that generate fees per port/cross‑connect.
- Managed and cloud services: value‑added managed hosting, hybrid cloud on‑ramps and professional services.
- Wholesale data centre leasing: large footprints leased to hyperscalers and carriers (capacity-based, contractually indexed).
- Power and ancillary services: high-density power supply, cooling and SLAs that command premium pricing.
| Metric | FY ended 30 Jun 2025 |
|---|---|
| Revenue | HK$2,938 million (↑10% YoY) |
| EBITDA | HK$2,128 million (↑15% YoY) |
| Final dividend declared | HK$0.12 per share (payable 20 Nov 2025) |
| Carbon status | Carbon‑neutral for internal operations (2025) |
| Sustainability index | Constituent of Hang Seng Corporate Sustainability Benchmark Index |
- Recurring contracts: long-dated colocation and power contracts provide predictable, contractually backed recurring income and high operating leverage.
- Capacity scaling & premium pricing: revenue scales with power density and space sold; premium for high‑availability and low‑latency locations.
- Interconnection upsell: cross‑connects, private peering and marketplace services increase ARPU (average revenue per user) for each rack/customer.
- Wholesale deals: multi‑year leases to hyperscalers/carriers provide lump-sum and anchor tenant economics that stabilise occupancy and cash flow.
- Operational efficiency: high EBITDA margins through scale, power management and high utilisation of existing campus infrastructure.
- Controlling interest: strategic backing by Sun Hung Kai Properties gives access to prime land and development capability for large-scale data centre campuses.
- Public float: listed equity provides liquidity, with investor base including institutional owners focused on infrastructure and sustainability credentials.
- Governance & sustainability: board oversight with explicit ESG targets, reflected by carbon‑neutral internal operations and Hang Seng sustainability benchmark inclusion.
- Occupancy and power utilisation rates across MEGA campus and other facilities.
- New wholesale anchor tenants and expansion contracts (hyperscaler activity).
- Pricing power for high-density racks and interconnection services.
- Capital expenditure discipline and timing of campus rollouts versus demand.
- Operational carbon and energy efficiency measures supporting sustainability premium.
SUNeVision Holdings Ltd. (1686.HK): History
SUNeVision Holdings Ltd. (1686.HK) traces its roots to the digital infrastructure needs of Hong Kong's tech and telecom sectors, growing from an internal data-centre initiative within Sun Hung Kai Properties into a standalone listed provider of carrier-neutral data centres, cloud solutions and related connectivity services. Since listing on the Hong Kong Stock Exchange, the company has expanded capacity and diversified services to capture rising demand for colocation, interconnection and cloud on-ramps.- Listed entity: SUNeVision Holdings Ltd. (stock code: 1686.HK)
- Parent: Sun Hung Kai Properties Limited (leading Hong Kong property developer)
- Investor base: mix of institutional and retail investors
| Metric | Value |
|---|---|
| Market capitalization (as of 1 Oct 2025) | HK$28.03 billion |
| Average daily trading volume | 5.54 million shares |
| 52-week trading range | HK$3.58 - HK$10.36 |
| Exchange | Hong Kong Stock Exchange (1686.HK) |
- Provide resilient, scalable digital infrastructure to enterprises, carriers and cloud providers.
- Enable Hong Kong and regional connectivity through carrier-neutral data centres and peering ecosystems.
- Drive recurring revenue and margin expansion via long-term colocation contracts, managed services and value-added connectivity.
- Colocation: customers lease racks, cabinets or cages and pay for power, space and cooling on contractual terms.
- Interconnection and connectivity: meet-me-room services, cross-connects and direct cloud connections generate recurring fees.
- Managed and value-added services: remote hands, security, backup and hybrid-cloud onboarding add higher-margin revenue streams.
- Capacity expansion and land/property synergies via parent group (Sun Hung Kai Properties) support growth and site development economics.
SUNeVision Holdings Ltd. (1686.HK): Ownership Structure
SUNeVision's mission centers on providing carrier- and cloud‑neutral data centre services with a focus on Asia‑leading connectivity, sustainable operations, and long‑term shareholder returns. The company combines high‑quality infrastructure investment with strong environmental and corporate governance commitments.- Mission: Deliver carrier- and cloud‑neutral data centre services and lead in connectivity across Asia.
- Environmental commitment: Achieved carbon‑neutral status for internal operations in 2025.
- Corporate sustainability: Constituent of the Hang Seng Corporate Sustainability Benchmark Index.
- Innovation & infrastructure: Continuous investment in advanced data centre platforms to support cloud, enterprise and hyperscale customers.
- Shareholder focus: Regular dividend payments reflecting a commitment to shareholder value.
| Item | Detail / Figure |
|---|---|
| Controlling shareholder | Sun Hung Kai Properties Limited - 51.22% (majority stake as per latest substantial shareholder filings) |
| Free float / Public shareholders | Approx. 48.78% |
| Market capitalization (approx.) | HK$20.5 billion (approx. value as of mid‑2024) |
| Inclusion in ESG benchmark | Hang Seng Corporate Sustainability Benchmark Index constituent |
| Carbon neutrality target / status | Internal operations carbon‑neutral in 2025 |
| Dividend policy | Consistent dividend payer - regular interim and final dividends (historic payout consistency) |
- Majority backing from Sun Hung Kai Properties provides strategic stability and access to land/development resources for campus expansion.
- Public shareholders and institutional investors demand transparency, ESG performance and dividend continuity - driving operational discipline.
- Board composition and independent directors oversee capital allocation toward hyperscale‑ready capacity and sustainability investments.
SUNeVision Holdings Ltd. (1686.HK): Mission and Values
SUNeVision Holdings Ltd. (1686.HK) operates one of Asia's largest carrier- and cloud-neutral data centre ecosystems, anchored by the MEGA Campus in Fo Tan, Hong Kong. The company's mission centers on providing highly reliable, scalable, and interconnected digital infrastructure to enable cloud providers, telcos, content platforms and enterprises to deploy mission-critical IT workloads.- Core mission: deliver resilient, energy-efficient hyperscale and enterprise-grade data centre and interconnection services that enable digital transformation across Asia.
- Values: customer-centric uptime and security, operational excellence, sustainability (energy efficiency & carbon reduction), and open interconnectivity.
- Data centre campus model: the MEGA Campus aggregates capacity and cross-connectivity across MEGA-i and high-tier MEGA Gateway, MEGA IDC, MEGA Plus and MEGA Two, offering both hyperscale halls and cabinet/ cage colocation.
- Multi-cloud and exchange access: direct physical and virtual connections to major cloud providers and Internet exchanges to reduce latency and simplify hybrid/multi-cloud architectures.
- Colocation: secure, power-dense racks, cages and shell-and-core space for enterprises and carriers to house servers, storage and network equipment.
- Interconnection: private cross-connects, meet-me-rooms, carrier hotels and neutral peering points that enable low-latency traffic exchange between networks and cloud platforms.
- Managed services: turnkey design, installation and operation of extra-low voltage (ELV), IT cabling, access control, voice/data, power distribution, and network integration services.
| Metric | Value |
|---|---|
| Primary campus | MEGA Campus (MEGA-i, MEGA Gateway, MEGA IDC, MEGA Plus, MEGA Two) |
| Aggregate critical IT load (approx.) | ~100+ MW of IT load capacity across campus |
| Colocation footprint | Several hundred thousand sq. ft. of technical space (hyperscale halls + cabinets) |
| Customer connectivity | Direct connections to major public cloud providers, multiple Internet exchanges and 100+ carriers & CDNs |
| Uptime standard | IEC/Tier-aligned designs with N+1 to 2N redundancies |
- Colocation fees: recurring rental and power charges for rack, cage, shell-and-core and dedicated halls billed on contractual terms (multi-year contracts, base rent + utility/PUE-indexed power consumption).
- Interconnection services: one-time installation charges and recurring cross-connect fees, port/virtual cross-connect subscriptions and meet-me-room services.
- Managed services & project work: professional services revenues from design, installation, cabling, commissioning and third-party equipment management.
- Value-added cloud on-ramps and ecosystem services: managed cloud connections, hybrid cloud integration and direct cloud on-ramp subscriptions.
| Fiscal year | Revenue (HK$) | Operating EBITDA (HK$) | Net profit (HK$) | Total assets (HK$) |
|---|---|---|---|---|
| FY2022 | ~3.0 billion | ~2.1 billion | ~1.5 billion | ~26.0 billion |
| FY2023 | ~3.1 billion | ~2.2 billion | ~1.8 billion | ~27.5 billion |
- Principal shareholder: Sun Hung Kai Properties (majority stake; strategic parent providing real estate and development scale).
- Market position: Hong Kong's leading neutral data centre operator with expanding interconnection ecosystem across Greater Bay Area and regional links.
- Capital investment model: large-scale, phased capex to expand IT load and interconnection capacity, funded via operating cashflow, debt and parent-group support as required.
- Energy & efficiency: investment in high-efficiency plant, PUE optimization and on-campus distribution to reduce carbon intensity per MW delivered.
- Resilience: multi-feed power systems, on-site generation/back-up, robust BMS and security operations to deliver high availability SLAs.
- Ecosystem growth: ongoing expansions of MEGA Campus to meet demand from cloud providers, financial institutions, content networks and enterprise digitalisation.
SUNeVision Holdings Ltd. (1686.HK): How It Works
SUNeVision operates Hong Kong's largest portfolio of carrier- and cloud-neutral data centres and associated IT infrastructure services. Its core operations combine: site development and construction; power, cooling and security operations; carrier and cloud interconnection services; plus value-added ELV and IT systems for enterprise customers.- Data centre development: design, build and commission of Tier-class facilities with high-density power and specialised cooling for hyperscale and enterprise customers.
- Colocation services: rack, cage and suite-level space leased to carriers, cloud providers and enterprises on long-term contracts.
- Interconnection and ecosystems: provision of cross-connects, meet-me-rooms and neutral carrier hotel services to enable multi-cloud and partner connectivity.
- Managed ELV & IT systems: installation, maintenance and managed services for networking, security, and building low-voltage systems.
- Capacity expansion: staged roll-out of new halls and campuses responding to hyperscale demand and AI workloads.
| Metric | FY 2024 / Year ended Jun 30, 2024 | FY 2025 / Year ended Jun 30, 2025 |
|---|---|---|
| Total Revenue (HK$ million) | 2,671 (implied from composition) | 2,938 |
| Revenue growth (YoY) | - | +10% |
| EBITDA (HK$ million) | 1,850 (approximate prior) | 2,128 (+15% YoY) |
| Net Income (HK$ million) | 906 (prior year implied) | 979 (+8% YoY) |
| Adjusted gearing | 44% (or 31% excl. shareholder loans) | 44% (or 31% excl. shareholder loans) |
| Revenue split | Data centres: 92% / ELV & IT Systems: 8% | Data centres: 92% / ELV & IT Systems: 8% |
- Colocation leases and recurring service fees: primary, predictable cash flows from space, power and connectivity charged to tenants; this segment accounted for 92% of FY 2024 sales.
- Cross-connect and interconnection charges: per-port and per-circuit fees for carrier and cloud connectivity within neutral facilities.
- Premium services and SLAs: higher-margin add-ons such as dedicated power, high-density power cabinets and enhanced uptime guarantees.
- ELV & IT Systems projects: one-off and project-based revenue streams for security, cabling, network installs and other low-voltage systems (8% of FY 2024 sales).
- New capacity monetisation: staged openings of data hall capacity capture demand from existing hyperscalers and new AI-driven customers, driving utilisation and revenue uplift.
- High utilisation by hyperscale clients and AI deployments-primary demand drivers behind FY 2025 revenue (+10%) and EBITDA (+15%).
- Stable, recurring revenue base from long-term colocation contracts supporting margin expansion and cash generation.
- Capital intensity managed via structured financing; adjusted gearing at 44% (31% excluding shareholder loans) reflects balance between growth and leverage.
- Geographic and tenant diversification within Hong Kong's premium data centre market reduces single-customer concentration risk.
| Revenue Component | Contribution to FY 2024 Sales | Role in Growth |
|---|---|---|
| Data centre & colocation | 92% | Primary growth engine-driven by capacity expansion and hyperscale/AI demand |
| ELV & IT Systems | 8% | Complementary, project-based revenue supporting enterprise customers |
| Interconnection | Included within data centre revenues | Generates high-margin network effects and ecosystem value |
SUNeVision Holdings Ltd. (1686.HK): How It Makes Money
SUNeVision is Hong Kong's largest carrier- and cloud-neutral data centre provider, monetising infrastructure, connectivity and managed services across a dense ecosystem anchored by its MEGA Campus. Revenue is driven by long-term contracts, high utilisation of colocation space, interconnection services and value-added cloud/on-ramp solutions.- Core revenue streams: colocation leases, rack-and-cage deployments, power and ancillary facility charges.
- Interconnection & network revenue: cross-connects, Internet exchanges and carrier-neutral meet-me-room services.
- Managed services and cloud on-ramps: hybrid-cloud solutions, managed hosting and professional services.
- Expansion monetisation: leasing of newly commissioned phases (e.g., Phase One of MEGA IDC) to hyperscalers and enterprise customers.
| Metric | Detail / 2025 |
|---|---|
| Market position | Largest data centre provider in Hong Kong; carrier & cloud neutral |
| MEGA Campus | Major Asia data centre ecosystem connecting carriers, cloud providers and enterprises |
| Operational sustainability | Carbon‑neutral for internal operations in 2025; constituent of Hang Seng Corporate Sustainability Benchmark Index |
| Financial growth | Revenue +10% year‑on‑year in 2025 |
| Capacity expansion | Successful launch of Phase One of MEGA IDC supporting incremental tenancy and power consumption |
- High tenancy stickiness from multi‑year contracts and mission‑critical workloads reduces churn and increases recurring revenue.
- Scale economics at MEGA Campus lower average power and operating cost per kW, improving margins as utilisation rises.
- Carrier- and cloud-neutral positioning attracts diverse carriers and hyperscalers, increasing interconnection fees and ecosystem value.
- Sustainability credentials (carbon neutrality, index membership) support corporate customers' ESG procurement decisions and demand for green colocation.
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