Hong Kong Broadband (01310) fell by nearly 5%, hitting a record low of HK$2.4. As of press release, it decreased by 4.76% to HK$2.4, with a turnover of HK$40.31 million.
April 30,$HKBN (01310.HK)$It also fell by nearly 5%, hitting a record low of HK$2.4. As of press release, it decreased by 6.35% to HK$2.36, with a turnover of HK$56.1272 million.
According to the news, Hong Kong Broadband recently announced its interim results for the six months ended February 29, 2024. The group achieved HK$5.809 billion, a year-on-year decrease of 13.39%; profit attributable to shareholders of HK$1,534 million, a decrease of 93.4%; basic profit per share of HK0.1 cents; and plans to pay an interim dividend of HK15 cents per share. The decline in revenue was mainly due to lower-than-expected sales performance of mobile phones and other products.
According to J.P. Morgan Chase, Hong Kong Broadband's announcement of results for the first half of fiscal year 2024 was disappointing. The dividend per share fell 25% to HK$0.15 per share, mainly due to a decrease in broadband users, shrinking corporate revenue, and a 51% surge in interest expenses. The bank believes that structural problems such as poor broadband implementation and heavy debt burdens in Hong Kong will not improve in the short term, so it maintains a “reduced holdings” rating. The target price for broadband in Hong Kong was reduced from HK$2.4 to HK$2.2.