The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it lowered the target price of Hong Kong broadband (01310) from HK$2.4 to HK$2.2, maintained a “reduced holdings” rating, and lowered the dividend payout forecast for FY2024 and FY2025 by 28% and 36% respectively to 0.3 yuan for two years, reflecting the bank's concerns about the company's business fundamentals, rising interest costs, and capital expenditure pressure brought about by the construction of a 25Gbps fiber optic network in the future.

According to the report, Hong Kong Broadband announced disappointing results for the first half of fiscal year 2024. The dividend per share fell 25% to $0.15 per share, mainly due to a decrease in broadband users, shrinking corporate revenue, and a 51% surge in interest expenses. The bank believes that structural problems such as poor broadband implementation and heavy debt burdens in Hong Kong will not improve in the short term, so it maintains a “reduced holdings” rating. Motong said that the bank's preference for Hong Kong telecom operators is HKT-SS (06823), then PCCom (00008), and only then Hong Kong Broadband.