Data center service provider SUNeVision completed a major deal recently, leasing an entire data center block to a big client, sending its share price to a new peak even as most other tech stocks were crashing.
Its chief executive, Raymond Tong Kwok-kong, said with a laugh that as Hong Kong is a blessed city, the data-center sector should continue to grow.
A local enterprise born in the dotcom craze in 2000, SUNeVision continues to flourish even after the tech bubble had burst.
Its first center operated from a repurposed old industrial building that belonged to its mother company. It later built data centers on purchased land designated for such use.
Bullish about the sector, Tong left caterer Maxim Group to join SUNeVision a few years ago.
Apart from working hard to acquire information and visiting other places to learn about the business, he has also been asking clients about their needs and views on areas that need improvement.
Its latest project, to custom design and manage a whole data center for a major client, represents a new direction in its business mode.
Tong is confident about the future of this sector because more and more data processing companies have set up shop in Hong Kong in recent years.
He also pointed out three specific factors that support a bright prospect for the development of data center services in Hong Kong.
First, local cloud storage has huge potential as the technology is still being developed and many enterprises have just started to consider using cloud storage.
Second, being a hub in fiber optics telecommunication, the SAR enjoys clear geographical advantages.
Third, professions in Hong Kong that require the massive use of data, such as financial institutions, are very competitive, which in turn puts data services on an upward trajectory.
Can the group's successful operating model be simply replicated in the mainland?
Tong said the mainland data sector is still in the phase of "burning money to grab market share," which is different from Hong Kong, where expansion can proceed hand in hand with making profits.
After listening to his market analysis, it becomes clear why he calls Hong Kong a blessed place for doing business and why SUNeVision continues to rally despite a high P/E ratio of 40.
Siu Sai-wo is publisher of Sing Tao Daily
