HK Stock Market Move | Sunvision (01686) fell nearly 6% again. Institutions said that the company's valuation already fully reflects its strong fundamentals.

SUN EVISION (01686) fell by nearly 6%, as of the time of reporting, it had fallen by 5.73%, at 7.9 Hong Kong dollars, with a turnover of 3.02 billion Hong Kong dollars. On the news front, SUN EVISION recently released its performance for the six months ending December 31, 2024. The group generated revenue of 1.47 billion Hong Kong dollars during this period, an increase of 14% year-on-year; shareholders' attributable profit was 484 million Hong Kong dollars, an increase of 11% year-on-year. BOCOM INTL pointed out that SUN EVISION's performance for the first half of the 2025 fiscal year was slightly above expectations; the pre-leasing progress of the new data center was impressive, and AI computing power drove growth. The bank noted that as of the closing price on February 25, 2025, the company's stock price had increased by about 3.5 times since May 2024. BOCOM INTL believes that the company's current valuation is similar to that of international leading peers and fully reflects positive fundamental drivers. The short-term upside potential is limited, so the rating is downgraded to "neutral". In addition, China Securities Co., Ltd. pointed out that the main focus of the current market is on the significant decrease in training and inference costs for AI large models, which may affect the demand for computing power infrastructure construction. The bank believes that in the long term, the reduction in computing power costs is a necessary condition for the explosion of AI large model applications. Currently, both domestic and international cloud providers are significantly increasing capital expenditure, with strong support on the demand side.