The annual performance in 2020 is basically in line with our expectations.
The company announced its annual results for 2020: revenue of HK $32.39 billion, down 2.2% from the same period last year, including 1.8% for broadband business, 7.8% for mobile services, 2.1% for new business, and HK $5.3 billion for net profit, up 1.6% from the same period last year. Net profit margin increased by 0.6 percentage points to 16.4%, mainly due to the company's strict cost control. According to the company's disclosure, the adjusted capital flow remained stable at HK $0.71 per share, an increase of 1% over the same period last year, and the dividend per share was basically flat.
Trend of development
Mobile services have been damaged, and 5G is expected to boost. Affected by the epidemic, mobile business revenue for the whole of 2020 fell 12.3% to HK $10.37 billion compared with the same period last year, of which mobile service revenue fell 7.8%, mainly due to a sharp decline in non-travel and prepaid services due to travel restrictions. The increase in local ARPU from HK $181 in the first half of 2020 to HK $184 is mainly driven by the increase in 56 penetration. By early February 2021, the company's 5G user penetration has reached 10%. We expect 5G user penetration to increase ARPU by about HK $70 and alleviate the negative impact of the market price war. We expect that with the emergence of more applications and the popularity of people-friendly price terminals, the company's 5G penetration is expected to reach 25-30% by the end of 2021. As the first operator in Hong Kong to provide MTR 5G signal coverage, the company will attract more high-end 5G users by virtue of its first-in advantage and extensive indoor and outdoor network coverage.
Broadband services are highly reliable, have wide coverage, and continue to maintain strong growth. Revenue from broadband networks and local data services increased by 1.8 per cent to HK $22.36 billion compared with the same period last year, mainly due to increased demand for broadband and telephone traffic from enterprises and residents during the epidemic. The company continues to increase the construction of optical fiber network, with a net increase of 59000 over the previous year, and at the same time continues to promote Wi-i solutions throughout the house. By the end of 2020, the number of users has increased by 7% to 307000, with a market share of 21%. We believe that with high-speed and wide coverage of high-quality broadband network, high-quality content resource output in coordination with NowTV, as well as a variety of solutions and value-added services It will continue to inject growth momentum into broadband services.
New business helps the digital transformation of enterprises. HKT Trust and HKT actively develops digital business, serving customers including Chow Tai Fook Jewellery, Fubon Bank and other large institutions. The company signed a contract of HK $3.8 billion for enterprise digital transformation in 2020, and plans to serve more head and long tail customers in the future. With the landing and promotion of smart medicine, smart property, smart infrastructure and other projects in Hong Kong, we believe that 5G will give full play to its potential at 2B and accelerate the transformation of enterprise digitization and urban intelligence.
Profit forecast and valuation
We lowered our 2021 net profit by 9% to HK $5.396 billion, mainly considering the negative impact of immigration restrictions on baptism and prepaid business under the epidemic, and introduced a 2022 net profit forecast of HK $5.806 billion. HKT Trust and HKT is currently trading at 9.5 times 2021 EV/EBITDA, and we maintain an outperform industry rating and a target price of HK $14.00, corresponding to 12 times 2021 EV/EBITDA, which is 34.9% upside from the current stock price.
Risk.
Uncertainty of macro environment and uncertainty of new business development.