GLONGHUI, September 26 | Morgan Stanley reported that the target price for broadband in Hong Kong was lowered from HK$4 to HK$3.5. The bank lowered its dividend per share (DPS) forecast for the 2023-2025 fiscal year by 14%-18%, lowered the company's EBITDA forecast for the 2023-2025 fiscal year by 3-4%, and higher interest costs for the same period. Maintaining a “in sync with the market” rating was due to the company's lack of significant profit growth and poor elasticity, high debt ratios, and weakening investor confidence after the last dividend cut. According to the Big Market Index, Hong Kong Broadband's dividend per share is expected to remain flat in the second half of 2023, at HK$0.2 per share. This reflects a basically flat EBITDA, rising interest costs, and a flat 78.5% annual dividend. Damo also pointed out that it is expected that it will take time for the company (ARPU) to recover. Residential broadband ARPU is expected to remain flat in the second half of the year, then enter moderate growth in FY2024; in the long run, Hong Kong broadband has great potential to expand in the corporate sector; interest costs are still a burden. Cash interest costs in the second half of the year will be about 30% higher than in the first half of the year. Furthermore, US interest may remain at a high level for a long time. Therefore, the impact on interest costs for Hong Kong broadband is likely to continue until 2024.