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<Research>M Stanley Cuts HKT-SS (06823.HK) TP to $10, Reiterates Rating at Overweight
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Morgan Stanley issued a research report reiterating rating on HKT-SS (06823.HK) at Overweight on the basis of its resilient growth amidst ongoing fierce competition.

However, Morgan Stanley cut its target price on the Company to $10 from $10.5, while maintaining a cautious view on other sector operators, as they are more susceptible to price competition, leading to more uncertainty in growth. PCCW (00008.HK)'s dividend declaration in 1H24 will be a key catalyst.

The high-end market continued to grow steadily with limited competition pressure due to customer loyalty, network quality and brand awareness. However, price wars will continue in the low-end market.

As a result, Morgan Stanley expected PCCW's mobile data business revenue to rise 3% YoY in 1H24. SMARTONE TELE (00315.HK) will see a 3% YoY decrease, while HUTCHTEL HK (00215.HK) will see a 6% YoY decline.

Morgan Stanley lowered its target prices on SMARTONE TELE/ PCCW from $4.5/ $3.7/ to $4/ $3.5, with both ratings kept at Equalweight. Morgan Stanley's target prices for HUTCHTEL HK/ HKBN (01310.HK) were $1.1/ $2.2, with rating kept at Equalweight/ Underweight.
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