GLONGHUI, September 15 | UBS published a research report stating that it maintains its “buy” ratings for Hong Kong Telecom and PCCW, and continues to be optimistic about Hong Kong Telecom, believing that its business prospects are more flexible, while Hong Kong's broadband will still need time to recover and maintain its “sell-sell” ratings. Considering that the Hong Kong Interbank Offered Rate (HIBOR) is still high, interest costs are expected to be high on the weighted average cost of capital, so UBS lowered the target prices of the local telecommunications companies covered. Among them, the target price of Hong Kong Telecom dropped from HK$13 to HK$11.8, PCCW from HK$4.8 to HK$4.32, and Hong Kong Broadband from HK$4.2 to HK$3.4. The bank said that the channel survey found that competition in the home broadband market has improved in recent months, but competition for mobile services is still fierce. It believes that the Hong Kong telecommunications market has gone through many rounds of price wars in the past ten years, and different customer groups have penetrated, so the market share of all operators will remain stable in the future. UBS pointed out that Hong Kong Telecom mainly targets value-driven customers. ARPU and the number of users are growing steadily, while at the same time, corporate revenue growth is improving, which is a major highlight of its interim results. Meanwhile, the new Hong Kong Broadband Enterprise Solution Team was launched in February of this year. Currently, there has been an increase in current orders, and it is expected that there will be a recovery next year.