Jinwu Financial News | BOCOM INTL Research Reports indicate that SUNEVISION (01686) slightly exceeded expectations in the first half of the 2025 fiscal year, with revenue of 1.47 billion yuan (Hong Kong dollars, same below), an increase of 14.0% year-on-year, mainly driven by new Datacenter/old project clients' Electrical Utilities capacity and price increases. Adjusted EBITDA was 1.053 billion yuan, up 17.1% year-on-year, roughly in line with the bank's expectations. Operating cash inflow was 0.983 billion yuan, an increase of 37.3% year-on-year, exceeding expectations.
MEGA IDC Phase 1 is now operational, with the first batch of clients occupying about 30% of the total floor area. Another Cloud Computing Service provider has committed to renting approximately 30% of the space and will further increase its design capacity during the period. The company stated that AI is driving demand for related applications and Cloud Computing Services, with domestic Internet and Cloud Computing Service providers showing more proactive expansion demands.
As of the end of the first half of the 2025 fiscal year, the company has equipped capacity increased by 12MW/2MW year-on-year/quarter-on-quarter to 103MW, while the future total capacity could reach 280MW. The bank raised the Target Price to 8.58 Hong Kong dollars, corresponding to about 20 times the 2026 EV/EBITDA, but believes that the current valuation is already comparable to leading international companies and fully reflects positive fundamental drivers, and thus downgraded the rating to neutral due to limited short-term upside potential.
