Sunevision Holdings Ltd. · HKEX:1686
Sunevision — FY2023/24 Earnings Presentation
22 slides from Sunevision's earnings presentation, August 2024
Slide 1: FY23/24 Results Presentation
FY23/24 RESULTS PRESENTATION (HKSE: 1686) August 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 14% YoY to HK$2,674mn – Revenue from data centre and IT facilities increased 14% YoY to HK$2,461mn – Growth driven by contribution from both new sites1 (c.58% of growth), and price and power increments from existing data ce
Slide 6: Strong revenue growth underpinned by robust customer demand
STRONG REVENUE GROWTH UNDERPINNED BY ROBUST CUSTOMER DEMAND Strong revenue growth of 14% YoY to HK$2,674mn reflecting continued customer demand and strong pricing power Revenue Designed IT Capacity up to 280MW 1 IT Capacity ~70MW ~70MW ~80MW ~80MW ~87MW ~91MW ~101MW (HK$mn) 1,384 1,290 1,238 108 1,0
Slide 7: Revenue from both existing and new sites are driving up
REVENUE FROM BOTH EXISTING AND NEW SITES ARE DRIVING UP New sites beginning to ramp up contributing to revenue growth with solid organic growth from existing data centres driven by power and pricing increments Revenue Growth Mix1,2 (HK$mn) ▪ Existing sites contributed to c.42% of growth, driven by p
Slide 8: Strong EBITDA growth with NPAT offset by higher interest
STRONG EBITDA GROWTH WITH NPAT OFFSET BY HIGHER INTEREST EBITDA increased 10% YoY to HK$1,849mn and NPAT largely flat at HK$907mn. EBITDA margins at 69% diluted by new sites ramping up and NPAT margin decreasing due to higher interest cost EBITDA1 and EBITDA Margin NPAT 2,500 2,000 50% (HK$mn) 80% (
Slide 9: Capex to support further capacity expansion
CAPEX TO SUPPORT FURTHER CAPACITY EXPANSION Strong cashflow generation from existing data centres with CAPEX peaking in FY24 due to construction and fit- out of MEGA Gateway and MEGA IDC Phase 1, capex expected to fall by 10-20% per annum in the coming years Operating Cash Flows1 Net Cash used in In
Slide 10: Strong shareholder support with secured funding
STRONG SHAREHOLDER SUPPORT WITH SECURED FUNDING Major shareholder extended shareholder loan and fully supportive to fund expansion pipeline; no refinancing needed until 2026. Adjusted gearing ratios1 remain healthy at 49% with shareholder's loans or 35% excluding Total Debt Shareholder Support (HK$m
Slide 11: Business Overview
BUSINESS OVERVIEW Helen Lo Director, Commercial
Slide 12: Customer demand remains strong
CUSTOMER DEMAND REMAINS STRONG Increase in demand of data centre space driven by expansion of hyperscalers, bank customers together with robust demand from connectivity customers FY24 Customer Mix YoY Growth Description • Two major big tech companies and 20+ global and regional telcos and OTTs have
Slide 13: AI as a major catalyst for future growth
AI AS A MAJOR CATALYST FOR FUTURE GROWTH 1 2 Actual power usage surges since Generative AI More pipeline for larger-scale and higher-density takes off demand • IT power usage of a major cloud player • More pipeline from multiple international and increased by more than 100% YoY in a major DC Chinese
Slide 14: Premium rental justified by superior infrastructure
PREMIUM RENTAL JUSTIFIED BY SUPERIOR INFRASTRUCTURE Global leading revenue and EBITDA economics on the back of unrivalled infrastructure and service Revenue economics comparison among global peers EBITDA economics comparison among global peers (HK$/kW/month) (HK$/kW/month) 2,500+ 2,000+ Equivalent t
Slide 15: 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 • Major cloud service provider Signed c.30% and 2 international banks already moved in Phase 1 (500,000 square feet GFA) has been • Committed by another major Committed cloud service provi
Slide 16: MEGA Gateway about to stabilise
MEGA GATEWAY ABOUT TO STABILISE • Current occupancy: 65% signed and moved-in; good mix of cloud, telco and bank customers • Capacity originally earmarked by a potential Telco customer was relinquished at the last stage of contract signing due to its restructuring of international assets • But its IT
Slide 17: MEGA-i, world's leading data centre for connectivity
MEGA-i, WORLD’S LEADING DATA CENTRE FOR CONNECTIVITY • No.1 connectivity hub in Asia with 200+ telco carriers, ISPs and other types of service providers connected by 9 submarine cable systems from all over the world • Been putting through price increases both on a per sqft basis and a per cross-conn
Slide 18: ESG remains a key focus for SUNeVision
ESG REMAINS A KEY FOCUS FOR SUNEVISION Environmental Social Governance Committed to be carbon neutral in 2050 Bringing positive impact to Embed diversity, equality the society and community and inclusion in our business • Obtained LEED Gold Building Design and Construction for • Fully supported the
Slide 19: Outlook
OUTLOOK Allen Fung Vice Chairman & Executive Director
Slide 20: Outlook
OUTLOOK • AI is a game changer and major catalyst for upcoming data centre demand • Hong Kong clearly still a key international network hub, with SUNeVision recording uptick in connectivity business even with price escalation in cross-connects • Strong hyperscale demand outlook especially in Tseung
Slide 21: Q&A
Q&A
Slide 22: Thank You
THANK YOU wale
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