Komo believes HKT-SS (06823) is the best defensive local telecommunications stock.
The Zhitong Finance App learned that Xiaomo released a research report stating that the Hong Kong telecommunications industry's favorite stock selection order was HKT-SS (06823), PCCom (00008), Hong Kong Broadband (01310), Digitcom (00315), and Hutchison Telecom Hong Kong (00215).
According to the report, HKT's performance in the second half of 2023 was steady. Dividends per fund unit increased by 3%, and the roaming business continued to recover during the period. In addition, strict control of capital expenditure and improving working capital levels helped offset the impact of interest expenses surging by more than 60% in the second half of last year.
The bank pointed out that when interest expenses reach a high level, HKT can still increase dividends while competition in the broadband market eases or provides room for fee increases. Therefore, it believes that the company is the best defensive local telecommunications stock. It has raised its rating to “increase holdings”, and the target price was raised from HK$9.5 to HK$11, making it the industry's first choice.