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<Research>M Stanley: If HKT-SS (06823.HK)'s Subsidiary Revoked US Operating License, Impact on Fundamentals Expected to Be Manageable
Recommend 16 Positive 35 Negative 29 |
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The US Federal Communications Commission (FCC) intended to revoke the operating license of HKT International, a wholly-owned subsidiary of HKT-SS (06823.HK), in the US due to its ties with China Unicom Americas. If the revocation process is enacted, the impact on HKT-SS' fundamentals should be manageable, as its international business revenue (excluding Greater China) in 2024 accounted for less than 7% of its total revenue, with the US market contributing only about 1%, according to Morgan Stanley's analysis. Moreover, the profit margin of international business is generally lower than that of local business. However, due to the uncertainty of the situation, negative market sentiment may continue to ferment. Therefore, the broker now rated HKT-SS at Overweight, with a target price of $13. AASTOCKS Financial News Website: www.aastocks.com |
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