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Hutchison Telecommunications Hong Kong Holdings (HK:0215)
:0215

Hutchison Telecommunications Hong Kong Holdings (0215) AI Stock Analysis

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HK

Hutchison Telecommunications Hong Kong Holdings

(OTC:0215)

Rating:58Neutral
Price Target:
HK$1.00
▼(-1.96%Downside)
Hutchison Telecommunications Hong Kong Holdings shows a mixed overall performance. Strengths include improved profitability and a strong balance sheet. However, the stock is technically overbought, and the valuation is stretched with a high P/E ratio. The attractive dividend yield is a positive aspect, but the decrease in free cash flow and limited profitability relative to equity are concerns.

Hutchison Telecommunications Hong Kong Holdings (0215) vs. iShares MSCI Hong Kong ETF (EWH)

Hutchison Telecommunications Hong Kong Holdings Business Overview & Revenue Model

Company DescriptionHutchison Telecommunications Hong Kong Holdings Limited, an investment holding company, provides mobile communication services. It offers 5G, 4G long term evolution, 3G, and GSM dual-band mobile telecommunications under the 3 brand. The company also provides mobile telecommunications services and products include local voice, SMS, MMS, international direct dialing, and international roaming; and data services and applications, such as direct carrier billing offerings, mobile device security management, eBooks, music downloads, movies-on-demand, mobile social networking applications, and FinTech, as well as Wi-Fi and other value-added services. In addition, the company is involved in the provision of marketing, advertising, and promotional services; and telecommunications retail operations. As of December 31, 2021, it served approximately 3.2 million customers in Hong Kong and Macau. The company was incorporated in 2007 and is headquartered in Central, Hong Kong. Hutchison Telecommunications Hong Kong Holdings Limited is a subsidiary of CK Hutchison Holdings Limited.
How the Company Makes MoneyHutchison Telecommunications Hong Kong Holdings generates revenue primarily through its mobile telecommunications services, which include voice, data, and roaming services. The company earns from monthly subscription fees, pay-as-you-go charges, and value-added services such as mobile content and applications. Additionally, its fixed-line and broadband services contribute to its income, offering packages to residential and business clients. Strategic partnerships with technology and content providers enhance the company's service offerings, creating additional revenue streams. The company's earnings are also supported by its efforts in cost management and operational efficiencies.

Hutchison Telecommunications Hong Kong Holdings Financial Statement Overview

Summary
The company has shown improved profitability and a strong balance sheet, with a significant improvement in gross profit margin and a positive net profit. The debt-to-equity ratio is low, indicating conservative leverage. However, profitability relative to equity is limited, and free cash flow has decreased, which indicates a need for focus on revenue growth and margin expansion.
Income Statement
65
Positive
The company's gross profit margin improved significantly in 2024, rising to 65.4% from a very low level the previous year. Despite a decrease in revenue by 2.3%, the net profit swung to a positive, indicating improved cost management. However, the net profit margin remains low at 0.1%, and the EBIT margin improved to 64.7% after a negative EBIT in 2023.
Balance Sheet
78
Positive
The balance sheet is strong, with an equity ratio of 68.3% indicating a well-capitalized company. The debt-to-equity ratio is low at 0.05, reflecting conservative leverage. Return on equity is minimal at 0.06%, pointing to limited profitability relative to equity.
Cash Flow
70
Positive
Operating cash flow to net income ratio is robust, showing good cash generation relative to net income. However, free cash flow decreased by 19.9% from the previous year. The free cash flow to net income ratio remains strong, indicating efficient cash flow management despite fluctuations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.78B4.90B4.88B5.38B4.54B
Gross Profit2.05B78.00M1.86B1.94B2.06B
EBITDA1.66B1.59B1.43B1.44B1.71B
Net Income6.00M-52.00M-158.00M4.00M361.00M
Balance Sheet
Total Assets13.97B14.56B14.96B15.45B14.81B
Cash, Cash Equivalents and Short-Term Investments3.68B3.68B3.70B3.98B5.25B
Total Debt463.00M482.00M456.00M417.00M524.00M
Total Liabilities4.44B4.70B4.69B4.63B2.77B
Stockholders Equity9.53B9.86B10.27B10.81B12.05B
Cash Flow
Free Cash Flow647.00M808.00M495.00M462.00M502.00M
Operating Cash Flow1.08B1.29B1.13B3.38B1.30B
Investing Cash Flow936.00M-1.71B1.31B-5.50B-749.00M
Financing Cash Flow-759.00M-761.00M-763.00M-1.71B-713.00M

Hutchison Telecommunications Hong Kong Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.02
Price Trends
50DMA
0.98
Positive
100DMA
0.94
Positive
200DMA
0.92
Positive
Market Momentum
MACD
0.01
Positive
RSI
63.56
Neutral
STOCH
75.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0215, the sentiment is Positive. The current price of 1.02 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.98, and above the 200-day MA of 0.92, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 63.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0215.

Hutchison Telecommunications Hong Kong Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$41.26B-0.79-14.19%3.78%2.39%-73.52%
58
Neutral
HK$4.96B858.330.06%10.21%-2.33%
$1.16B9.848.46%9.76%
$947.66M35.184.51%6.16%
$11.55B17.2213.76%7.94%
$628.32M8.949.25%13.00%
62
Neutral
HK$42.24B-14.69%10.43%3.33%36.39%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0215
Hutchison Telecommunications Hong Kong Holdings
1.03
0.12
13.44%
CCTTF
CITIC Telecom International Holdings
0.32
0.00
0.00%
HKBNF
HKBN
HKTTF
HKT and HKT
1.53
0.51
50.00%
STTFF
SmarTone Telecommunications Holdings
0.50
0.07
16.28%
HK:0008
PCCW Limited
5.55
1.94
53.74%

Hutchison Telecommunications Hong Kong Holdings Corporate Events

Hutchison Telecommunications Hong Kong Holdings Announces Successful AGM Results
May 14, 2025

Hutchison Telecommunications Hong Kong Holdings Limited held its Annual General Meeting on May 14, 2025, where all proposed resolutions were passed with significant shareholder support. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, re-appointment of PricewaterhouseCoopers as the independent auditor, and granting of mandates to the directors for share allotment and repurchase. This successful AGM reflects strong shareholder confidence and positions the company for continued stability and growth in the telecommunications sector.

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: Jun 11, 2025