UBS published a research report stating that HKT-SS (06823) recorded first-half EBITDA growth of approximately 3% year-on-year to HK$6.4 billion, which aligned with market expectations. While operational performance remained solid, net profit appeared to fall short of market expectations, potentially due to higher-than-anticipated interest expenses, as the benefits from lower HIBOR rates have not been fully reflected in the first half.
The firm noted that driven by enterprise revenue growth, it has raised its revenue forecasts for the fixed-line business (TSS) by 2-3% for 2025-2027, leading to an upward revision of overall revenue forecasts by 1-2% for the period. UBS marginally increased the company's target price by approximately 3%, from HK$13.0 to HK$13.4, while maintaining a "Buy" rating.
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