Jinwu Financial News | HSBC Global Research and Development Report shows that Hutchison Telecom Hong Kong (00215), supported by 77% growth in roaming, increased its service revenue by 8% in 2023, and its net loss per share narrowed by 67% to HK1.08 cents. The company's overall performance in 2023 was stable, but the results in the second half of the year may be affected by the loss of paying customers, but the prepaid business performed strongly. The bank had predicted that profit before interest and tax (EBIT) and net profit would return to positive values for the full year of 2023. The 2023 dividend was the same as last year, at HK7.49 cents. Future special dividends are still possible.
According to the bank, due to lower service revenue than expected and higher network costs, the bank lowered future forecasts, lowered revenue forecasts for 2024 and 2025 by 8.1% and 7.6%, and lowered EBITDA forecasts by 9.3% and 7.9%. The target price was reduced by 6.1% from HK$1.47 to HK$1.38. However, the results for the second half of 2023 continued to grow on the good momentum of the first half of the year. The bank believes that the company has potential for further growth in various fields, especially the potential rise in roaming business, which can reach 75% of pre-pandemic levels. Maintain a “buy” rating.