BST:VI6

Stock Analysis Report

SUNeVision Holdings

Executive Summary

SUNeVision Holdings Ltd., an investment holding company, engages in the data center business in Hong Kong.

Rewards

PE ratio (20.3x) is below the IT industry average (25.3x)

Earnings are forecast to grow 3.06% per year

Earnings grew by 29.6% over the past year

Pays a high and reliable dividend of 3.71%

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Established dividend payer with proven track record.

Share Price & News

How has SUNeVision Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VI6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

VI6

15.9%

DE IT

9.9%

DE Market


1 Year Return

-32.7%

VI6

-0.03%

DE IT

-17.5%

DE Market

Return vs Industry: VI6 underperformed the German IT industry which returned -3.5% over the past year.

Return vs Market: VI6 underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

VI6IndustryMarket
7 Day7.9%15.9%9.9%
30 Day-13.3%-11.7%-16.6%
90 Day-14.0%-11.6%-24.8%
1 Year-30.6%-32.7%0.7%-0.03%-15.0%-17.5%
3 Yearn/a75.1%69.8%-17.4%-24.5%
5 Yearn/a156.3%145.5%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is SUNeVision Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SUNeVision Holdings undervalued compared to its fair value and its price relative to the market?

20.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VI6 (€0.49) is trading above our estimate of fair value (€0.24)

Significantly Below Fair Value: VI6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VI6 is good value based on its PE Ratio (20.3x) compared to the IT industry average (25.3x).

PE vs Market: VI6 is poor value based on its PE Ratio (20.3x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: VI6 is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: VI6 is overvalued based on its PB Ratio (4.6x) compared to the DE IT industry average (3.1x).


Next Steps

Future Growth

How is SUNeVision Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VI6's forecast earnings growth (3.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: VI6's earnings (3.1% per year) are forecast to grow slower than the German market (14.3% per year).

High Growth Earnings: VI6's earnings are forecast to grow, but not significantly.

Revenue vs Market: VI6's revenue (9.6% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: VI6's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VI6's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has SUNeVision Holdings performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VI6 has a high level of non-cash earnings.

Growing Profit Margin: VI6's current net profit margins (51.7%) are higher than last year (47.1%).


Past Earnings Growth Analysis

Earnings Trend: VI6's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: VI6's earnings growth over the past year (29.6%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: VI6 earnings growth over the past year (29.6%) exceeded the IT industry 2.5%.


Return on Equity

High ROE: Whilst VI6's Return on Equity (22.48%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is SUNeVision Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: VI6's short term assets (HK$872.4M) do not cover its short term liabilities (HK$3.4B).

Long Term Liabilities: VI6's short term assets (HK$872.4M) do not cover its long term liabilities (HK$7.2B).


Debt to Equity History and Analysis

Debt Level: VI6's debt to equity ratio (231.5%) is considered high.

Reducing Debt: Insufficient data to determine if VI6's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VI6's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: VI6's interest payments on its debt are well covered by EBIT (83.1x coverage).


Balance Sheet

Inventory Level: VI6 has a high level of physical assets or inventory.

Debt Coverage by Assets: VI6's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is SUNeVision Holdings's current dividend yield, its reliability and sustainability?

3.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VI6's dividend (3.71%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: VI6's dividend (3.71%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: VI6's dividends per share have been stable in the past 10 years.

Growing Dividend: VI6's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.3%), VI6's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VI6's dividends in 3 years are forecast to be covered by earnings (68.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Raymond Tong (44yo)

1.83s

Tenure

HK$11,247,000

Compensation

Mr. Kwok-Kong Tong, also known as Raymond, serves as CEO & Executive Director of NexJ Systems Inc. and SUNeVision Holdings Ltd. since June 19, 2018. Mr. Tong serves as Chief Executive Officer of Pacific Co ...


CEO Compensation Analysis

Compensation vs Market: Raymond's total compensation ($USD1.45M) is about average for companies of similar size in the German market ($USD1.86M).

Compensation vs Earnings: Raymond's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ping-luen Kwok
Chairman20.25yrsHK$60.00k0.33% HK$7.0m
Kwok Kong Tong
CEO & Executive Director1.83yrsHK$11.25m0.0049% HK$105.9k
Yuk-lun Fung
Vice Chairman5.33yrsHK$630.00kno data
Chi-ho Tung
Executive Director20.25yrsHK$57.00kno data
King-lun Au
Company Secretary & Head of Financeno datano datano data
Man-yuen Chan
COO & Executive Director0.50yrno data0.00025% HK$5.4k
Yeuk-hung Lau
Commercial Director & Executive Director0.50yrno datano data

1.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: VI6's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ping-luen Kwok
Chairman20.25yrsHK$60.00k0.33% HK$7.0m
Kwok Kong Tong
CEO & Executive Director1.83yrsHK$11.25m0.0049% HK$105.9k
Yuk-lun Fung
Vice Chairman5.33yrsHK$630.00kno data
Chi-ho Tung
Executive Director20.25yrsHK$57.00kno data
Man-yuen Chan
COO & Executive Director0.50yrno data0.00025% HK$5.4k
Yeuk-hung Lau
Commercial Director & Executive Director0.50yrno datano data
Wing Yui Cheung
Vice Chairman5.33yrsHK$270.00kno data
On-Kwok Li
Independent Non-Executive Director20.25yrsHK$240.00kno data
Kai-Man Wong
Independent Non-Executive Director13.25yrsHK$240.00kno data
Yeo-Chi King
Independent Non-Executive Director13.25yrsHK$240.00k0.000020% HK$428.7

9.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: VI6's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VI6 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SUNeVision Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SUNeVision Holdings Ltd.
  • Ticker: VI6
  • Exchange: BST
  • Founded:
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: HK$18.259b
  • Listing Market Cap: HK$2.144b
  • Shares outstanding: 4.05b
  • Website: https://www.sunevision.com

Number of Employees


Location

  • SUNeVision Holdings Ltd.
  • Standard Chartered Tower
  • Unit 3110, 31st Floor
  • Kwun Tong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1686SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2000
VI6BST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 2000
1686SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2000
1686SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2000

Biography

SUNeVision Holdings Ltd., an investment holding company, engages in the data center business in Hong Kong. The company is involved in the provision of facilities management and value added services. It also engages in the design, installation, operation, laying, and cabling of extra-low voltage and information technology systems, as well as building access, voice, data, power supply systems and network, and other infrastructure networks; and provision of related repair and maintenance services. In addition, the company offers IT and optical fiber network, and related maintenance services; treasury services; and financing, management, and company secretary services. Further, it is involved in property and trademark holding activities. The company is headquartered in Kwun Tong, Hong Kong. SUNeVision Holdings Ltd. is a subsidiary of Sunco Resources Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:44
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.