MS: HKT (HKG:6823) to Rise Over the Next 60 Days

   Date:2012/01/16

Morgan Stanley believes that HKT Trust's (HKG:6823) share price will rise in absolute terms over the next 60 days.

The brokerage firm sees the potential elimination of unlimited mobile data plans in February (likely after the implementation of OFTA's new FUP guidelines) as a significant positive catalyst for the Hong Kong telecom industry, as it would open room for further revenue growth as data usage per customer continues to increase.

Unlike other pure mobile competitors such as CSL and SmarTone (00315)
, HKT benefits from: extensive fiber backhaul, ability to offload wireless data traffic to WiFi, and shared 4G/LTE capex with Hutchison Telecommunications Hong Kong (00215)
, the brokerage says. HKT's dividend yield of 8-9% is among the highest in Asian telecom companies.

The brokerage estimates that there is about an 80% plus or "highly likely" probability for the scenario.



 

Source:chinesestock.org

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