On July 18, GLONGHUY | Morgan Stanley published a report stating that the fundamentals of the Hong Kong telecommunications industry have improved, reflecting healthier market competition and the resumption of roaming. Interest rate risks have increased, but this concern has been broadly reflected in Hong Kong Telecom (6823.HK). The bank estimates that Hong Kong Broadband (1310.HK)'s adjusted free cash flow and distribution per share in FY2023 fell 19% year-on-year, mainly due to high interest rates, and lowered its target price from HK$5.5 to HK$4.5, maintaining its rating as “in sync with the market” while preferring Hong Kong Telecom (6823.HK), mainly due to recent weak stock prices providing absorption opportunities. It is one of the best defensive stocks in the industry, and provides a historically high dividend rate. It is expected to reach 10% this year, with a “increase in holdings” rating at HK$12.