＜Research＞HSBC Global Research Cuts HUTCHTEL HK (00215.HK) TP to $1.32; Operating Trend Improves

　　HSBC Global Research reported that HUTCHTEL HK (00215.HK) -0.020 (-1.980%) Short selling $206.04K; Ratio 15.156% achieved a YoY improvement in its 1H24 results. Total revenue declined 12% YoY, missing the broker's forecast of 3.3% growth, and equipment sales were well below expectations. An LBIT of $30 million was recorded, compared to the broker's estimate of an EBIT of $25 million.

　　The report noted that HUTCHTEL HK's medium-term capital expenditure grew by 2%, reaching 9% of total service revenue. The broker believed this level would be sustainable given that 5G coverage is almost complete, and expected the company to continue investing in expanding 5G capacity. The broker cut its EBITDA forecast for the group by 2.1% for 2024 and 2025 due to a slower-than-expected recovery in service revenues, but still projected operating profit to recover to $58 million in 2H24.

　　Related NewsHUTCHTEL HK (00215.HK) Interim Loss Narrows to $12M

　　HSBC trimmed its target price for HUTCHTEL HK by 4.3% from $1.38 to $1.32 due to lower EBITDA and revised CoE inputs, but maintained its Buy rating. The broker continued to be bullish on the stock, believing that the group's operating trend is improving and its capital expenditure should remain stable, which in turn would increase the likelihood of a special dividend.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 16:25.)

　　AAStocks Financial News