UBS: The impact on profits will be limited if HKT-SS's U.S. business license is revoked
UBS released a research report stating that regarding the Federal Communications Commission (FCC) of the United States' proposal to revoke the telecommunications service license of HKT-SS's subsidiary in the U.S., UBS believes that the potential ban will have a limited impact on the company's profitability, as the company's exposure to the U.S. market is very small; the U.S. market accounts for less than 1% of the company's total revenue, and the profit margin of this business is relatively low. The firm believes that in the face of increasing regulatory uncertainty, a forecasted dividend yield of approximately 7.6% for 2026 is attractive and can support the stock price. The firm currently gives HKT a "Buy" rating with a target price of HKD 13.4
According to the Zhitong Finance APP, UBS released a research report stating that regarding the Federal Communications Commission (FCC) of the United States' proposal to revoke the telecommunications service license of HKT-SS (06823) in the U.S., UBS believes that the potential ban will have a limited impact on the company's profitability, as the company's exposure to the U.S. market is very small; the U.S. market accounts for less than 1% of the company's total revenue, and the profit margin of this business is relatively low. The firm believes that in the face of increasing regulatory uncertainty, a projected dividend yield of about 7.6% in 2026 is attractive and can support the stock price. The firm currently gives HKT a "Buy" rating with a target price of HKD 13.4
