Sunevision Holdings Ltd. announces financial year 2019/20 final results

Sunevision Holdings Ltd. announces financial year 2019/20 final results

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Highlights 

  • Revenue from continuing operations increased 10% year on year to HK$1,714 million
  • EBITDA from continuing operations increased 18% year on year to HK$1,186 million, mainly driven by EBITDA from data centre business 
  • Underlying profit from continuing operations increased 11% year on year to HK$694 million
  • Underlying profit attributable to owners of the Company increased 6% year on year to HK$709 million
  • Final dividend of HK17.50 cents per share, 6% increase year on year
  • Power capacity enhancement by as much as 40% at MEGA-i, one of the most connected data centre hubs in Asia, is targeted to complete before the end of 2020. This upgrade will be a big boost to the Group’s connectivity business growth in coming years
  • The new sites TWTL 428 in Tsuen Wan and TKOTL 131 in Tseung Kwan O are targeted to complete construction by phases starting in 2022 
  • Upon completion of these projects, total GFA of the Group’s data centres will double to approximately 2.8 million square feet, while total IT load power capacity of the Group will more than triple. It will ensure that our customers have room for fast expansion as they grow 

 

SUNeVision Holdings Ltd. (“SUNeVision”, “the Group”; SEHK: 1686), the technology arm of Sun Hung Kai Properties (SEHK: 0016) and the largest data centre provider in  Hong Kong, today announced its final results for the year ended 30 June 2020.

During the year under review, EBITDA from continuing operations increased 18% year on year to HK$1,186 million, mainly driven by EBITDA from data centre business. Underlying profit from continuing operations increased 11% year on year to HK$694 million. Underlying profit attributable to owners of the Company (excluding the increase in fair value on investment properties) rose 6% year on year to HK$709 million. 

Revenue from continuing operations increased 10% year on year to HK$1,714 million, mainly driven by growth in business with existing customers and signing up new customers for the core business of data centre. Operating expenditure increased 16% year on year to HK$141 million. Operating profit from continuing operations rose 11% year on year to HK$863 million.

The directors have recommended the payment of a final dividend of HK17.50 cents per share for the year ended 30 June 2020. The dividend will be paid on 26 November 2020 following approval at the 2020 Annual General Meeting.

Raymond Tong, Chief Executive Officer of SUNeVision, said: “As the COVID-19 pandemic took hold, most economic activities worldwide have moved from in-person to virtual online communications, which resulted in a significant surge in data traffic and demand for a higher network performance requirement worldwide. The Group expects all these changes in commercial and consumer behaviour will be reflected positively in the Group’s operating performance in the coming few years.”

The Group is well positioned to capture the opportunities from the growth in technology trends, given the timely supply of the two new data centres and revitalisation of the existing data centres. The new site TWTL 428 in Tsuen Wan with approximately 200,000 square feet of gross floor area (“GFA”), and the greenfield site TKOTL 131 in Tseung Kwan O with approximately 1.2 million square feet of GFA, are targeted to complete construction by phases starting in 2022. Upon full completion, total GFA of the Group’s data centres in Hong Kong will double to approximately 2.8 million square feet. 

As for the existing data centres, the increase of power capacity in MEGA-i by as much as 40% is on track to be completed before the end of 2020. This upgrade will be a big boost to the Group’s connectivity business growth in coming years.  In addition, MEGA Two has undergone revitalisation work on multiple floors to serve the increasing high power-density needs of the Group’s hyperscale and cloud customers. 

As TKOTL 131 is located next to our current data center MEGA Plus, we will achieve substantial synergies in operations and infrastructure investment.  Upon completion, the purpose-built data center in TKOTL 131 will support an ultra-high power of at least 120MW IT load, which will more than triple our Group’s total data center IT load.  It will ensure that our customers have room for fast expansion as they grow.

Details of the Group’s business developments can be found at its website: www.sunevision.com

Financial Highlights 
(in HK$ million, unless otherwise stated)

For the year ended 30 June 2019 2020 % Change
Continuing operations
- Revenue
1,561 1,714 +10%
- EBITDA1 1,005 1,186 +18%
- Underlying profit2 628 694 +11%
       
Underlying profit attributable to owners of the Company3 670 709 +6%
       
EPS (Underlying profit from continuing operations) (HK cents) 15.52 17.15 +11%
EPS (Underlying profit attributable to owners of the Company) (HK cents) 16.57 17.51 +6%
Final DPS (HK cents) 16.50 17.50 +6%

1 EBITDA of FY2020 was impacted by the adoption of HKFRS 16 “Leases” which resulted in reclassification of rental expenses to depreciation and interest expenses. Excluding such impact, the year on year growth would be 15%

2 Year on year growth of underlying profit from continuing operations of 11% compared with EBITDA of 15% (excluding HKFRS 16 “Leases” impact) was mainly impacted by higher depreciation expenses as a result of more data centre facilities in use from customers move-in

3 Excluding the increase in fair value on investment properties

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