汇丰研究:数码通电讯目标价4.7港元 维持持有评级

HSBC Research: Digital Telecom's target price of HK$4.7 maintains holding rating

新浪港股 ·  Sep 3, 2020 16:07

HSBC Research will nowDigitale Telecom(00315) The target price was lowered from HK$4.8 to HK$4.7, maintaining the “hold” rating.

According to a report published by HSBC Research, Digitcom's profit in FY2020 fell 24% year on year, mainly because data roaming service revenue fell 25% year on year, while both users and churn rates remained stable. Only low-profit corporate service growth failed to offset the decline in data roaming. Capital expenditure increased 15% during the period, mainly because the company is preparing for 5G business, but the company's capital expenditure guidelines for the fiscal year remained stable and are expected to show a downward trend thereafter.

The bank said that the company is cooperating with Ericsson (ERIC.US) to expand 5G networks. It believes that benefiting from Ericsson's technology, the company's 5G service will be more extensive than its peers. The company launched a 5G home broadband service priced at HK$148 per month, mainly targeting 20-25% of users who currently have high broadband costs or no fiber coverage. The relevant market size has reached 1 billion Hong Kong dollars. The bank believes this will increase the application of 5G networks.

The bank believes that Digitalcom's EBITDA performance in FY2020 was in line with expectations, but operating profit fell short of expectations, and lowered the company's 2021 operating profit forecast by 2%, while the net profit forecast was lowered by 1.4%. The target price was lowered from HK$4.8 to HK$4.7, maintaining the “hold” rating.

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