SUNEVISION(01686) 交银国际证券·2025-02-27 02:31Investment Rating - The investment rating for the company is downgraded to Neutral [2][8]. Core Insights - The company's performance slightly exceeded expectations, driven by strong demand for data centers, but the valuation has fully reflected the positive fundamentals [5][6]. - The target price has been raised to HKD 8.58, reflecting a potential downside of 3.6% from the current price of HKD 8.90 [1][5]. - The company has shown significant growth in revenue and operating cash flow, with a year-on-year revenue increase of 14.0% in the first half of the fiscal year 2025 [5][6]. Financial Overview - For the fiscal year ending June 30, 2023, the company reported revenue of HKD 2,346 million, with projected revenue growth to HKD 3,322 million by 2025, representing a compound annual growth rate (CAGR) of 24.3% [4][9]. - Net profit for 2023 was HKD 905 million, expected to rise to HKD 1,198 million by 2025, indicating a growth rate of 32.0% [4][9]. - The adjusted EBITDA for the first half of fiscal year 2025 was HKD 1,053 million, up 17.1% year-on-year, with an EBITDA margin of 71.6% [5][6]. Market Position and Capacity - The company has successfully launched its first phase of the MEGA IDC, which is set to be the largest data center in Hong Kong, with a total floor area of approximately 500,000 square feet and a power capacity of 50 MW [5][6]. - The company anticipates a decrease in capital expenditures by 10-20% annually from 2025 to 2027, having passed the peak of capital spending and interest rate cycles [5][6]. - The total capacity is expected to reach 280 MW, with current equipped capacity at 103 MW, reflecting a year-on-year increase of 12 MW [5][6].