GLONGHUI, September 18 | UBS released a research report saying that the target price for broadband in Hong Kong was lowered by 19%, from HK$4.2 to HK$3.4, and the rating remained “sell-selling.” The target price reduction is mainly due to higher interest costs and weighted average capital cost predictions. It is estimated that the company's dividend per share for the second half of the fiscal year ending the end of August will drop another 20% year on year, while the first half of the fiscal year has already dropped 50%. The bank believes that there is limited room for the residential business to decline, but it will take time for the corporate business to recover. The bank lowered Hong Kong Broadband's net profit forecast for the 2023-25 fiscal year by 14%/18%/9%, respectively, because it is assumed that the average borrowing cost for the 2023/24 fiscal year will reach 6% to 7%, compared to 5.5% previously. The company currently has a dividend rate of 8% to 9% for the 2023/24 fiscal year. Compared with Hong Kong Telecom's dividend rate of 9% to 10%, and more resilient business prospects, etc., the company continues to prefer to “buy” Hong Kong Telecom, more than Hong Kong Broadband.