Morgan Stanley released a research report pointing out that under the continuous intense competition, based on the resilience of HKBN (06823.HK) growth, the bank reiterated its 'shareholding' rating for the company. However, the target price for the company was lowered from HKD 10.5 to HKD 10, while a cautious view was maintained on other industry operators because they are more susceptible to price competition, which increases uncertainty in growth. PCCW (00008.HK) dividends in the first half of 2024 will be a key catalyst.

The bank pointed out that there is a significant difference between high-end and low-end competition in mobile data and broadband business. As customer loyalty, network quality, and brand awareness, the high-end market continues to maintain stable growth with limited competitive pressure. However, the price war in the low-end market will continue. Therefore, the bank expects HKBN's mobile data business revenue to increase by 3% YoY in the first half of 2024, while HTHKH (00315.HK) is expected to decline by 3% YoY, and HUTCHTEL HK (00215.HK) is expected to decline by 6% YoY.

DBS lowered the target price of HTHKH from HKD 4.5 to HKD 4 and maintained a 'synchronous with the market' rating; lowered the target price of PCCW from HKD 3.7 to HKD 3.5 and maintained a 'synchronous with the market' rating; the target price for HUTCHTEL HK is HKD 1.1, and maintained a 'synchronous with the market' rating; while the target price for HKBN (01310.HK) is HKD 2.2, and maintained a 'shareholding' rating. (VC/K)

~