The Zhitong Finance App learned that DBS released a research report stating that the Digitong Telecom (00315) rating was downgraded from “buy” to “hold”, and the profit forecast for the 2024 to 2026 fiscal year (the fiscal year ending the end of June) was lowered by 9%, 11%, and 12%, respectively, to reflect the decline in ARPU forecasts due to increased competition and rising inventory and service costs. Profit is expected to increase 73.7%, 9.8% and 9.6% respectively during the period, and the target price was lowered from HK$7.1 to HK$4.2.

According to the report, the company's roaming revenue is increasing as the number of inbound and outbound travelers rises. The bank expects the company's roaming revenue in FY2024 to return to around 85% of pre-pandemic levels. Furthermore, due to increased competition, the market expects the growth of local mobile phone service revenue to remain flat in FY2024. However, a strong recovery in roaming revenue will support the company's average revenue per user (ARPU) and future profit growth.