Morgan Stanley predicts that in the first half of 2024, Hong Kong Telecom's mobile data business revenue will show a year-on-year increase of 3%, while Smartone Telecommunications will experience a year-on-year decline of 3%, and Hutchison Telecommunications (Hong Kong) will experience a year-on-year decline of 6%.
According to the Futu Securities app, Morgan Stanley has released a research report stating that it has lowered its target price for Smartone Telecommunications (00315) from HKD 4.5 to HKD 4.0, maintaining a "sync with the market" rating; lowered its target price for PCCW (00008) from HKD 3.7 to HKD 3.5, maintaining a "sync with the market" rating; and set a target price of HKD 1.1 for Hutchison Telecommunications (Hong Kong), maintaining a "sync with the market" rating; and a target price of HKD 2.2 for HKBN (01310), maintaining a "reduced holding" rating.
The report states that under continued fierce competition, Hong Kong Telecom-SS (06823) has resilient growth, and the bank reaffirms its "shareholding" rating with a target price lowered from HKD 10.5 to HKD 10.0. However, it maintains a cautious view of other industry operators due to their susceptibility to price competition, which increases uncertainty about growth. PCCW's dividend payment in the first half of 2024 will be a key catalyst.
The bank pointed out that there is a clear difference in competition between the high-end and low-end markets in mobile data and broadband businesses. Due to customer loyalty, network quality, and brand awareness, the high-end market continues to maintain stable growth with limited competitive pressure. However, price wars in the low-end market will continue. Therefore, the bank expects that in the first half of 2024, Hong Kong Telecom's mobile data business revenue will show a year-on-year increase of 3%, while Smartone Telecommunications will experience a year-on-year decline of 3%, and Hutchison Telecommunications (Hong Kong) will experience a year-on-year decline of 6%.