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PCCW Limited (HK:0008)
:0008
Hong Kong Market
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PCCW Limited (0008) AI Stock Analysis

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HK:0008

PCCW Limited

(0008)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$5.50
▲(1.66% Upside)
PCCW Limited's overall score is driven by stable revenue growth and strong cash flow generation, despite profitability challenges and high debt levels. Technical analysis shows a lack of strong momentum, and valuation is weak due to negative earnings. The absence of earnings call data and corporate events limits further insights.

PCCW Limited (0008) vs. iShares MSCI Hong Kong ETF (EWH)

PCCW Limited Business Overview & Revenue Model

Company DescriptionPCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company's services include local telephony, local data and broadband, mobile, international telecommunications, and satellite-based and network-based telecommunications services; and outsourcing, consulting, and contact center services. It also provides technical support, electronics and communications engineering, and products and solutions, as well as free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; and sells mobile handsets and accessories. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; supply of broadband internet access solutions and web services; provision of data services; software development, systems integration, consulting, and informatization activities; computer facilities management; the provision of computer and IP/IT related value-added services to business customers; and operates customer loyalty program and online merchandise sales. Additionally, the company offers IT and business process outsourcing, fintech, e-Commerce, big data analytics, managed, digital, cloud, and IoT solutions. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.
How the Company Makes MoneyPCCW Limited generates revenue primarily through its telecommunications services, which include fixed-line services, broadband internet, and mobile services, provided through its subsidiary HKT. The company also earns from its media operations, particularly through Now TV, its pay-TV service, which generates income from subscriptions and advertising. Additionally, PCCW has IT solutions services that contribute to its revenue by offering system integration, software development, and managed services. Furthermore, the company benefits from its property development and investment activities, including leasing and sales of real estate. Strategic partnerships and investments, especially in the technology and media sectors, also augment PCCW's earnings.

PCCW Limited Financial Statement Overview

Summary
PCCW Limited shows stable revenue growth but struggles with profitability, reflected in negative net income. Improved leverage management is noted, but high debt levels remain concerning. Strong cash flow generation is a positive, though the decline in free cash flow is a negative signal.
Income Statement
55
Neutral
PCCW Limited has shown a slight increase in total revenue from 2023 to 2024, with a revenue growth rate of 3.33%. However, the company has posted a net loss in both 2023 and 2024, resulting in negative net profit margins, with 2024 having a net profit margin of -0.18%. The gross profit margin remained stable at approximately 49.06% in 2024. The company's EBIT margin has decreased to 0% in 2024 from 14.42% in 2023, indicating a significant drop in operating profitability. The EBITDA margin also declined from 36.36% in 2023 to 29.88% in 2024.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has improved from 21.82 in 2023 to 7.20 in 2024, reflecting better leverage management. However, the return on equity (ROE) is negative due to the net loss, with the equity ratio increasing to 7.58%. The high level of total debt remains a concern, although the increase in stockholders' equity from 2023 to 2024 mitigates some risks.
Cash Flow
65
Positive
PCCW's operating cash flow decreased from 2023 to 2024, but it remains positive, which is a strength. The free cash flow, however, saw a significant decline of 42.2% from 2023 to 2024. The company has a high operating cash flow to net income ratio, given the negative net income, highlighting effective cash generation. The free cash flow to net income ratio is also positive, indicating PCCW's ability to generate cash despite profitability challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.78B37.56B36.35B36.06B35.45B35.98B
Gross Profit14.82B18.43B18.23B18.15B17.73B16.80B
EBITDA12.05B11.22B13.21B12.38B11.86B11.11B
Net Income-168.00M-66.00M-471.00M393.00M1.26B-1.02B
Balance Sheet
Total Assets101.17B98.76B94.56B95.06B94.22B97.84B
Cash, Cash Equivalents and Short-Term Investments3.14B2.58B2.71B3.13B5.04B4.62B
Total Debt59.25B53.94B54.19B51.65B49.22B60.56B
Total Liabilities93.77B87.24B84.86B82.30B78.74B84.28B
Stockholders Equity4.23B7.49B2.48B11.44B14.36B9.93B
Cash Flow
Free Cash Flow6.51B3.08B5.32B3.43B1.78B5.57B
Operating Cash Flow8.68B10.63B13.35B10.34B9.70B12.70B
Investing Cash Flow-2.33B-7.70B-7.46B-6.01B-7.62B-7.54B
Financing Cash Flow-6.50B-3.26B-6.27B-5.83B-1.57B-6.47B

PCCW Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.41
Price Trends
50DMA
5.35
Positive
100DMA
5.29
Positive
200DMA
4.83
Positive
Market Momentum
MACD
<0.01
Negative
RSI
58.72
Neutral
STOCH
85.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0008, the sentiment is Positive. The current price of 5.41 is above the 20-day moving average (MA) of 5.32, above the 50-day MA of 5.35, and above the 200-day MA of 4.83, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 85.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0008.

PCCW Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$5.12B10.709.18%6.88%0.52%2.07%
75
Outperform
€638.78B13.187.57%5.65%1.54%6.27%
71
Outperform
HK$8.99B9.828.67%7.74%-0.62%-5.10%
66
Neutral
$88.38B17.3514.75%2.90%2.33%2.41%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
57
Neutral
$10.83B82.538.30%4.37%-2.02%
54
Neutral
HK$41.85B-14.69%1.81%4.26%36.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0008
PCCW Limited
5.41
1.38
34.24%
HK:1883
CITIC Telecom International Holdings
2.43
0.29
13.39%
HK:0728
China Telecom
5.31
0.97
22.41%
HK:1310
HKBN
7.32
4.47
157.20%
HK:6823
HKT and HKT
11.66
2.40
25.88%
HK:0315
SmarTone Telecommunications Holdings
4.65
0.77
19.69%

PCCW Limited Corporate Events

PCCW Limited Renews Service Agreements with Lenovo Group
Aug 12, 2025

PCCW Limited has renewed its service agreements with Lenovo Group, extending their collaboration until August 2028. This renewal involves continuing connected transactions under the 2025 Extended TSA and 2025 Services Agreement, allowing Lenovo PCCW Solutions to provide services to PCCW subsidiaries. These agreements are on normal commercial terms and exempt from certain regulatory requirements, ensuring seamless continuation of operations and strengthening PCCW’s market position.

The most recent analyst rating on (HK:0008) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on PCCW Limited stock, see the HK:0008 Stock Forecast page.

PCCW Limited Reports Strong Growth in 2025 Interim Results
Aug 1, 2025

PCCW Limited reported significant growth in its interim results for the first half of 2025, with a 7% increase in revenue to HK$18,922 million and a 116% rise in consolidated profit to HK$758 million. The company’s video streaming service, Viu, expanded its subscriber base to 13.8 million, driving a 27% growth in subscription and advertising revenues. ViuTV also saw an increase in digital memberships to 3.3 million, aided by a strong lineup of concerts and shows. The company’s strategic focus on expanding its content offerings and partnerships, particularly in Southeast Asia, has bolstered its market position and provided a pathway to positive cash flow.

The most recent analyst rating on (HK:0008) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on PCCW Limited stock, see the HK:0008 Stock Forecast page.

PCCW Limited Declares Interim Dividend for First Half of 2025
Aug 1, 2025

PCCW Limited has announced an interim dividend of HKD 0.0977 per share for the six months ending June 30, 2025, reflecting its continued commitment to shareholder returns. The dividend will be paid on September 5, 2025, with an ex-dividend date of August 15, 2025, and a record date of August 20, 2025. This announcement underscores PCCW’s stable financial performance and its strategic focus on maintaining investor confidence through consistent dividend payouts.

The most recent analyst rating on (HK:0008) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on PCCW Limited stock, see the HK:0008 Stock Forecast page.

PCCW Limited Reports Interim Results for HKT Trust and HKT Limited
Jul 31, 2025

PCCW Limited has announced the interim results for HKT Trust and HKT Limited for the first half of 2025, confirming its 52.24% ownership. This announcement, made under Hong Kong’s securities regulations, highlights PCCW’s ongoing influence in the telecommunications industry through its substantial investment in HKT.

The most recent analyst rating on (HK:0008) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on PCCW Limited stock, see the HK:0008 Stock Forecast page.

PCCW Limited Schedules Board Meeting to Discuss Interim Results and Dividend
Jul 22, 2025

PCCW Limited has announced that its board of directors will convene on August 1, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0008) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on PCCW Limited stock, see the HK:0008 Stock Forecast page.

PCCW Limited Grants Share Awards to Executive Director
Jun 24, 2025

PCCW Limited announced the grant of 773,579 share awards under its 2024 Share Award Scheme to Susanna Hui, the Executive Director and Acting Group Managing Director. The awards, which have no purchase price and are based on prior performance targets, will vest over one and two-year periods. The grant has been approved by the company’s Independent Non-Executive Directors, and there is no clawback mechanism in place for these awards. This move highlights PCCW’s commitment to rewarding its leadership and aligning their interests with the company’s long-term goals.

The most recent analyst rating on (HK:0008) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on PCCW Limited stock, see the HK:0008 Stock Forecast page.

PCCW Limited Grants 166,882 Share Awards Under 2024 Scheme
Jun 13, 2025

PCCW Limited announced the grant of 166,882 share awards under its 2024 Share Award Scheme, with no purchase price attached. The awards are aimed at employee participants and are set to vest over one or two years, depending on the specific award. The performance targets for these awards have already been met, and there is no clawback mechanism in place. This initiative reflects PCCW’s strategy to incentivize its employees, potentially enhancing workforce motivation and aligning employee interests with company goals.

The most recent analyst rating on (HK:0008) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on PCCW Limited stock, see the HK:0008 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 01, 2025