Glonghui, Feb. 27 | Morgan Stanley published a research report stating that PCCW announced its results last Friday (23rd) and also announced a reduction in dividends distributed from HKT. Damo believes that yesterday's decline of about 5% only reflects a reduction in the dividend transmission rate of FY2023 to 97% and a slight downward review of its valuation. It is believed that this decline did not fully reflect the potential risk of further dividend cuts. It is expected that the pressure on free cash flow of electricity earnings will continue in the short to medium term. Therefore, it is estimated that there is still a risk of further downside in the short term, in sync with the “big market” rating. The target price is HK$4.