UBS Predicts Minimal Effect on Earnings if HKT-SS (06823.HK) Loses US Business License
FCC Proposal Impact: The FCC's proposal to revoke HKT-SS's subsidiary's license for US telecommunications services is expected to have a limited impact on the company's earnings, as the US market contributes less than 1% to its total revenue.
Investment Outlook: UBS maintains a "Buy" rating for HKT-SS, citing an attractive forecasted dividend yield of approximately 7.6% for 2026, which is expected to support the stock price despite rising regulatory uncertainties.
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HKT-SS Initiates Early Deployment for Lok Ma Chau Loop and Northern Metropolis, Strengthens Collaboration with Research Institutions for Execution
China's Technological Self-Reliance: The "15th Five-Year Plan" emphasizes high-level technological self-reliance, with Hong Kong expected to contribute significantly through innovation and technology development, particularly in the Lok Ma Chau Loop and Northern Metropolis.
AI Facility and Research Center: A new AI facility and research center has been established in the Lok Ma Chau Loop to enhance cross-border connectivity and data flow in the Greater Bay Area, addressing the growing demand for fiber optics.
Collaboration and Business Outlook: The group plans to collaborate with research institutions to apply research results practically, expressing optimism about AI's positive impact on the telecom industry and the government's smart city initiatives.
Market Competition: China Mobile Hong Kong's entry into the market with affordable 5G plans is intensifying competition, but the group remains committed to fair competition and is cautious about its market strategies.
PCCW Reports Annual Loss of $253M; Final Dividend Per Share Stays at $28.48 Cents
Annual Results: PCCW reported a narrowed loss of $253 million for the year ended December 2025, compared to a loss of $300 million the previous year, with a loss per share of $3.27 cents.
Dividends: The company declared a final dividend per share of $28.48 cents, maintaining the same level as last year, resulting in a total annual dividend of $38.25 cents, unchanged year-over-year.
Revenue Growth: PCCW's total revenue for 2025 reached $40.252 billion, reflecting a 7.2% increase year-over-year, with HKT-SS revenue rising by 5% to $36.553 billion.
Segment Performance: The OTT Business revenue grew by 5% to $2.579 billion, while revenue from Free TV & Related Business decreased by over 2% to $1.034 billion year-over-year.
HKT-SS Launches New AI Facility and R&D Center in Lok Ma Chau Loop to Enhance Data Flow in the Greater Bay Area
Hong Kong's Sci-Tech Initiatives: The Group is preparing for Hong Kong's enhanced focus on sci-tech self-reliance, highlighted by the establishment of a new AI facility and R&D center in the Lok Ma Chau Loop to support the Northern Metropolis.
Cross-Border Data Flow: This initiative aims to improve cross-border interconnection and data flow within the Greater Bay Area, addressing the growing demand for fiber optics due to data center expansions and urban developments.
AI's Impact on Telecom: AI is expected to benefit the telecom industry by enhancing network services and increasing demand for AI-driven platforms and management services, according to Susanna Hui, Managing Director of HKT-SS.
Cautious Business Outlook: While optimistic about future growth driven by smart city advancements and increased hardware purchases, the Group remains cautious and plans to manage its debt levels carefully.
HKT-SS Secures Proposal for Additional Investment in Subsidiary
HKT-SS and PCCW Joint Announcement: HKT-SS has received an acquisition offer from CM Capital to buy an additional 9% equity interest in Regional Link Telecom Services from PCCW, along with 9% of certain shareholder receivables.
Investment Terms Under Finalization: The involved parties are currently finalizing the terms of the investment, although it is uncertain whether the investment will proceed.
HKT-SS Annual Net Profit Rises 4.3%; Final Distribution per Stapled Unit Set at HK47.97 Cents
Company Overview: HKT-SS (06823.HK) reported a profit attributable to holders of Share Stapled Units of HKD5.286 billion for the year ending December 2025, reflecting a 4.3% year-over-year increase.
Earnings Per Share: The earnings per share (EPS) for HKT-SS stood at HK69.76 cents.
Short Selling Activity: The company experienced short selling amounting to $38.48 million, with a short selling ratio of 21.197%.
Stock Performance: HKT-SS shares saw a slight increase of 0.020 (+0.168%) in their trading value.
M Stanley's H Shares Focus List (Table)
Morgan Stanley's Strategy Report: The report highlights a focus on Hong Kong and Chinese stocks, removing YANGTZE POWER and adding CHALCO to the list.
Stock Performance Insights: Notable potential upside percentages are reported for various stocks, including Alibaba (3.3%) and CATL (43.3%), while some stocks like ESPRESSIF show a decline (-2.498%).
Short Selling Trends: Significant short selling activity is noted across several stocks, with Tencent experiencing the highest short selling amount at $1.59 billion and a ratio of 9.036%.
Market Outlook: Daiwa anticipates a structural recovery in Chinese stocks by 2025, despite a majority of consumers expecting profit deterioration.
HKT-SS Initiates Early Deployment for Lok Ma Chau Loop and Northern Metropolis, Strengthens Collaboration with Research Institutions for Execution
China's Technological Self-Reliance: The "15th Five-Year Plan" emphasizes high-level technological self-reliance, with Hong Kong expected to contribute significantly through innovation and technology development, particularly in the Lok Ma Chau Loop and Northern Metropolis.
AI Facility and Research Center: A new AI facility and research center has been established in the Lok Ma Chau Loop to enhance cross-border connectivity and data flow in the Greater Bay Area, addressing the growing demand for fiber optics.
Collaboration and Business Outlook: The group plans to collaborate with research institutions to apply research results practically, expressing optimism about AI's positive impact on the telecom industry and the government's smart city initiatives.
Market Competition: China Mobile Hong Kong's entry into the market with affordable 5G plans is intensifying competition, but the group remains committed to fair competition and is cautious about its market strategies.
PCCW Reports Annual Loss of $253M; Final Dividend Per Share Stays at $28.48 Cents
Annual Results: PCCW reported a narrowed loss of $253 million for the year ended December 2025, compared to a loss of $300 million the previous year, with a loss per share of $3.27 cents.
Dividends: The company declared a final dividend per share of $28.48 cents, maintaining the same level as last year, resulting in a total annual dividend of $38.25 cents, unchanged year-over-year.
Revenue Growth: PCCW's total revenue for 2025 reached $40.252 billion, reflecting a 7.2% increase year-over-year, with HKT-SS revenue rising by 5% to $36.553 billion.
Segment Performance: The OTT Business revenue grew by 5% to $2.579 billion, while revenue from Free TV & Related Business decreased by over 2% to $1.034 billion year-over-year.
HKT-SS Launches New AI Facility and R&D Center in Lok Ma Chau Loop to Enhance Data Flow in the Greater Bay Area
Hong Kong's Sci-Tech Initiatives: The Group is preparing for Hong Kong's enhanced focus on sci-tech self-reliance, highlighted by the establishment of a new AI facility and R&D center in the Lok Ma Chau Loop to support the Northern Metropolis.
Cross-Border Data Flow: This initiative aims to improve cross-border interconnection and data flow within the Greater Bay Area, addressing the growing demand for fiber optics due to data center expansions and urban developments.
AI's Impact on Telecom: AI is expected to benefit the telecom industry by enhancing network services and increasing demand for AI-driven platforms and management services, according to Susanna Hui, Managing Director of HKT-SS.
Cautious Business Outlook: While optimistic about future growth driven by smart city advancements and increased hardware purchases, the Group remains cautious and plans to manage its debt levels carefully.
HKT-SS Secures Proposal for Additional Investment in Subsidiary
HKT-SS and PCCW Joint Announcement: HKT-SS has received an acquisition offer from CM Capital to buy an additional 9% equity interest in Regional Link Telecom Services from PCCW, along with 9% of certain shareholder receivables.
Investment Terms Under Finalization: The involved parties are currently finalizing the terms of the investment, although it is uncertain whether the investment will proceed.
HKT-SS Annual Net Profit Rises 4.3%; Final Distribution per Stapled Unit Set at HK47.97 Cents
Company Overview: HKT-SS (06823.HK) reported a profit attributable to holders of Share Stapled Units of HKD5.286 billion for the year ending December 2025, reflecting a 4.3% year-over-year increase.
Earnings Per Share: The earnings per share (EPS) for HKT-SS stood at HK69.76 cents.
Short Selling Activity: The company experienced short selling amounting to $38.48 million, with a short selling ratio of 21.197%.
Stock Performance: HKT-SS shares saw a slight increase of 0.020 (+0.168%) in their trading value.
M Stanley's H Shares Focus List (Table)
Morgan Stanley's Strategy Report: The report highlights a focus on Hong Kong and Chinese stocks, removing YANGTZE POWER and adding CHALCO to the list.
Stock Performance Insights: Notable potential upside percentages are reported for various stocks, including Alibaba (3.3%) and CATL (43.3%), while some stocks like ESPRESSIF show a decline (-2.498%).
Short Selling Trends: Significant short selling activity is noted across several stocks, with Tencent experiencing the highest short selling amount at $1.59 billion and a ratio of 9.036%.
Market Outlook: Daiwa anticipates a structural recovery in Chinese stocks by 2025, despite a majority of consumers expecting profit deterioration.
