Sunevision Holdings Ltd. · HKEX:1686
Sunevision — H1 FY2023/24 Earnings Presentation
25 slides from Sunevision's earnings presentation, February 2024
Slide 1: 1H23/24 Results Presentation
1H23/24 RESULTS PRESENTATION (HKSE: 1686) February 2024
Slide 2: Disclaimer
DISCLAIMER The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, recommendation or suggestion by SUNEVISION Holdings Limited
Slide 3: Agenda
AGENDA •Financial Review •Business Review •Outlook 3
Slide 4: Financial Overview
FINANCIAL OVERVIEW Evan Wong CFO, Non-property Portfolio Businesses (SHKP)
Slide 5: Strong Revenue Growth with Healthy Operating Cash Inflow
STRONG REVENUE GROWTH WITH HEALTHY OPERATING CASH INFLOW • Revenue increased 16% YoY to HK$1,290mn – Revenue from data centre and IT facilities increased 16% YoY to HK$1,185mn – Growth predominantly driven by price and power increments from existing data centres1 (contributing to c.60% of growth), a
Slide 6: Strong Revenue Growth Underpinned by Robust Customer Demand
STRONG REVENUE GROWTH UNDERPINNED BY ROBUST CUSTOMER DEMAND Strong revenue growth of 16% YoY to HK$1,290mn reflecting continued customer demand and strong pricing power Designed IT Net Revenue¹ Capacity of 100MW as at Dec 23 2 ~70MW ~70MW ~70MW ~80MW ~80MW ~87MW ~91MW 3 ~75% ~79% ~87% ~80% ~78% ~73%
Slide 7: Strong Ability to Drive Further Growth from Existing Sites
STRONG ABILITY TO DRIVE FURTHER GROWTH FROM EXISTING SITES Despite most existing sites being almost fully occupied in terms of floor area, the ability to perform power upgrades and undertake revitalisation programs are the key to unlocking further growth potential MEGA-i IT Installed Capacity c.100%
Slide 8: Revenue from Both Existing and New Sites Are Driving Up
REVENUE FROM BOTH EXISTING AND NEW SITES ARE DRIVING UP Strong organic growth from existing data centres driven by power and pricing increments, with new sites beginning to ramp up and contributing to revenue YoY Revenue Growth from Data Centre and IT Facilities1,2 1,185 ▪ Majority of the revenue gr
Slide 9: Despite High Interest Cost, NPAT Maintained Due to Quality EBITDA Growth
DESPITE HIGH INTEREST COST, NPAT MAINTAINED DUE TO QUALITY EBITDA GROWTH EBITDA increased 12% YoY to HK$899mn and NPAT largely flat at HK$435mn. EBITDA margins at 70% diluted by new sites ramping up and NPAT margin decreasing due to higher interest costs (+HK$65.9mn YoY) EBITDA and EBITDA Margin NPA
Slide 10: Capex to Support Further Capacity Expansion
CAPEX TO SUPPORT FURTHER CAPACITY EXPANSION Strong cashflow generation from existing data centres but expecting peak CAPEX in FY24 due to construction and fit-out of MEGA Gateway and MEGA IDC Phase 1 Operating Cash Flows (excl. movement in Working Capital) Net Cash used in Investing Activities 4,000
Slide 11: Gearing and Financial Position
GEARING AND FINANCIAL POSITION Net debt / EBITDA1 increased to 6.1x predominantly due to funding of MEGA Gateway and IDC; effective interest rate reaching the peak on the back of higher HIBOR. Major shareholder fully supportive to fund expansion pipeline Total Debt Loan Maturity and Debt Structure (
Slide 12: Strong Shareholder Support
STRONG SHAREHOLDER SUPPORT Data centre is an inherently asset heavy industry with front loaded funding requirement. Major shareholder has reiterated full commitment to fund all existing pipeline when needed ▪ Leverage on SHKP scale and expertise in construction to better Shareholder Support manage r
Slide 13: Business Overview
BUSINESS OVERVIEW Allen Fung Vice Chairman & Executive Director
Slide 14: Customer Demand Remains Strong
CUSTOMER DEMAND REMAINS STRONG Increase in demand of data centre space driven by expansion of hyperscalers, bank customers together with robust demand from connectivity customers 1H24 Customer Mix YoY Growth Description • Robust demand in MEGA-i and uptick in cross-connects with price increases Conn
Slide 15: AI as a Major Catalyst for Future Growth
AI AS A MAJOR CATALYST FOR FUTURE GROWTH AI is likely to be a game changer for data Implications to Data Centre Requirements centre demand • More power supply with scalability for • Hong Kong may not house the most future expansion advanced servers, but the servers are still substantially more power
Slide 16: Strong Demand for MEGA IDC Phase 1
STRONG DEMAND FOR MEGA IDC PHASE 1 MEGA IDC: Data Centre of Tomorrow Stage of Occupancy1 Description commitment • Including a major cloud service provider and some major international banks Signed c.30% • Will be moving in by batch; all of them will start billing before June 2024 Phase 1 (500,000 sq
Slide 17: MEGA Campus Well Positioned to Capture Connectivity Demand
MEGA CAMPUS WELL POSITIONED TO CAPTURE CONNECTIVITY DEMAND Gateway to China (Cross-border land cables) ▪ Hong Kong connectivity demand remains strong driven by existing subsea cable upgrades and new cables coming to MEGA Hong Kong Fanling ▪ MEGA Campus is well positioned to capture connectivity dema
Slide 18: TKO Connect - Fortifying SUNeVision's Leading Position in Connectivity
TKO CONNECT - FORTIFYING SUNEVISION’S LEADING POSITION IN CONNECTIVITY TKO Connect, a dedicated undersea fibre cable system directly linking MEGA-i and MEGA Plus, and further expanding to MEGA IDC; enabling 4 times faster than alternate land routes 1. TKO Connect High- performance Connectivity Ultra
Slide 19: TKOIE (INNOPARK) Update
TKOIE (INNOPARK) UPDATE HKSTP has formally admitted there is indeed subletting in TKOIE (INNOPARK) • We have warned HKSTP about its unlawful subletting issues since 2012, and have subsequently won the court case in May 2022 • In Dec 2023, HKSTP has formally replied us about its own investigation res
Slide 20: TKOIE (INNOPARK) Update
TKOIE (INNOPARK) UPDATE Implications to TKO Data Centre Cluster • A total of ~2.8m sq. ft GFA in INNOPARK are used to provide data centre services for third parties, including financial institutions, OTT players and multinational enterprises • For data centre operators to fully comply with HKSTP’s L
Slide 21: ESG Remains a Key Focus – Committed to Be Carbon Neutral in 2050
ESG REMAINS A KEY FOCUS FOR SUNEVISION – COMMITTED TO BE CARBON NEUTRAL IN 2050 Renewable energy Green buildings Energy efficiency Green Loan Committed to renewable Constructing and managing Equipped data centres with The first in Hong Kong data energy data centres in an energy-efficient technology
Slide 22: Outlook
OUTLOOK Allen Fung Vice Chairman & Executive Director
Slide 23: Outlook
OUTLOOK • AI is a game changer and will be a major catalyst for upcoming data centre demand • SUNeVision’s data centres are disproportionally advantaged to meet the much more demanding requirements with premium rental • Robust demand for new data centres as customers ramp up • Continue to manage cos
Slide 24: Q&A
Q&A
Slide 25: Thank You
THANK YOU osha
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