Hong Kong Broadband (1310.HK) will announce its results for the full fiscal year ending the end of August this Thursday (27th). Credit Suisse published a research report stating that its stock price has dropped 24% since September. It believes that the market has reacted excessively. After taking into account factors such as weak economic prospects, the expected decline in net increase in broadband users in the second half of the fiscal year, and a slowdown in JOS business growth, it is expected that revenue for the second half of the fiscal year will meet expectations, but net profit may be lower.

The bank predicts that Hong Kong Broadband's dividend rate from 2022 to 2024 will still reach double digits, indicating that the current price level is calculated as a historically low price-earnings ratio predicted for fiscal year 2023, raising the investment rating from “neutral” to “outperforming the market.”

Credit Suisse is concerned about Hong Kong Broadband's enterprise solution strategy and prospects. Due to increased financial costs and more conservative business growth forecasts, the earnings forecast per share for 2022 to 2024 was lowered by 30%, 51.5% and 29.5%, and the target price was lowered from HK$10.1 to HK$6.8.