HKBN (1310) AI Stock Analysis

• Market Cap: HK$10.34B
• Dividend Yield: 5.45%
• Average Volume (3M): 57.76M
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.18
• Revenue Growth: 4.48%
• EPS Growth: 1820.51%
• Country: HK
• Employees: 3,741
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.07
• Shares Outstanding: 1,478,921,500
• 10 Day Avg. Volume: 35,324,997
• 30 Day Avg. Volume: 57,759,700
• PEG Ratio: 0.02
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 8.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$6.50
• Price Target Upside: 3.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$7.00 ▲(11.46% Upside)

The score is held back mainly by elevated balance-sheet risk (high leverage and shrinking equity) and weak technical momentum (below key moving averages with negative MACD). Offsetting factors include improved profitability versus prior-year losses, generally positive cash generation despite recent free-cash-flow volatility, and a supportive dividend yield, though valuation remains demanding due to the high P/E.

Positive Factors

Recurring revenue model

A business mix weighted to recurring residential subscriptions and multi-year enterprise ICT contracts supports predictable, durable revenue and makes cash flows less cyclical. This enhances customer lifetime value, upsell potential and steady service-based margins over time.

Profitability turnaround

Moving from a large loss to positive earnings indicates operational recovery and earnings resilience. Sustained profitability improvement can strengthen reinvestment capacity and credit metrics, making the business more able to fund capex, dividends or debt reduction over the medium term.

Positive operating cash generation

Consistent positive operating cash flow provides a durable source to fund operations, service debt and support dividend policy. Even with volatile FCF, regular cash conversion underpins liquidity and reduces reliance on external financing versus companies with negative operating cash flow.

Negative Factors

High leverage and shrinking equity

Elevated debt and a materially reduced equity cushion weaken financial flexibility and raise refinancing risk. This constrains capital allocation, heightens vulnerability to revenue shocks, and limits the firm's ability to pursue M&A or withstand prolonged industry stress.

Volatile free cash flow

A sharp fall and high volatility in FCF impairs the company's capacity to deleverage or increase strategic investments. Inconsistent free cash generation makes sustaining dividends or funding growth initiatives without raising external capital more difficult over the medium term.

Earnings and margin volatility

Choppy profitability and compressed margins reduce predictability of returns and hinder long-term planning. Persistent margin pressure can limit reinvestment, weaken competitive positioning versus better-capitalized peers, and increase sensitivity to pricing or cost shocks.

HKBN Business Overview & Revenue Model

Company Description

HKBN Ltd., an investment holding company, provides fixed telecommunications network, international telecommunications, and mobile services to residential and enterprise customers primarily in Hong Kong. It offers data connectivity, cloud and data center, managed Wi-Fi, business continuity, system integration, cybersecurity, mobile, and voice and collaboration services; and roaming and digital solutions. The company provides IT and security, data processing/center, telecommunication, administrative support, consulting, enterprise systems, technical and product sale, distribution and logistics, outsourcing, software and programming, broadband, Wi-Fi consultancy and connectivity, and business referrals and consultancy services. It also offers internet, telecommunications, and security devices installation services; holds and invests in properties; sells and markets mirapoint, and email related products; holds licenses; and markets and distributes computer hardware and software, and telecommunication and office automation products, as well as provides related services. The company was founded in 1992 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

HKBN generates revenue through multiple streams, primarily from its broadband and telecommunications services. The company charges subscription fees to residential customers for high-speed internet access, which is a significant portion of its income. Additionally, HKBN provides data connectivity and technology solutions to businesses, contributing to its enterprise revenue stream. The company also benefits from partnerships with technology firms to offer bundled services, enhancing its offerings to customers. By continuously expanding its service portfolio and leveraging strategic alliances, HKBN sustains its financial growth and market position.

HKBN Financial Statement Overview

Summary

Income statement shows a notable rebound from a large loss (2023) to positive earnings (2025) and modest revenue growth, but profitability has been volatile with signs of margin compression. Balance sheet risk is elevated due to high debt and a materially shrinking equity base, limiting financial flexibility. Cash flow is consistently positive, yet free cash flow is volatile and recently declined sharply, reducing deleveraging capacity.

Income Statement

Revenue has been broadly stable to modestly growing, with the latest annual period up about 5% versus the prior year. Profitability has improved sharply from a large loss in 2023 to positive earnings in 2025, and operating profit has remained positive in recent years. That said, earnings quality looks somewhat volatile (near break-even in 2024 and a large loss in 2023), and margins appear to have compressed versus earlier years, indicating a still-choppy profitability profile.

Balance Sheet

Leverage is high: total debt remains around HK$11–12B while equity has declined meaningfully over time (from ~HK$6.5B in 2020 to ~HK$2.3B in 2025), which reduces financial flexibility. The company does have a sizable asset base (~HK$17–22B historically), but the shrinking equity cushion and elevated debt load increase balance-sheet risk, particularly if operating performance softens.

Cash Flow

Cash generation is positive, with operating cash flow and free cash flow consistently above zero across the periods shown. However, free cash flow is volatile, including a steep decline in the latest year (down ~53%), and cash flow coverage of debt has not been especially strong in prior years, implying more limited deleveraging capacity without sustained improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.13B	11.13B	10.65B	11.69B	11.63B	11.46B
Gross Profit	2.58B	2.58B	2.51B	2.61B	2.84B	2.80B
EBITDA	2.38B	2.40B	2.14B	1.21B	2.83B	2.59B
Net Income	206.86M	206.86M	10.28M	-1.27B	553.32M	206.87M
Balance Sheet
Total Assets	17.25B	17.25B	17.67B	18.15B	20.43B	21.77B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.19B	1.22B	1.03B	1.21B	1.42B
Total Debt	11.28B	11.28B	11.47B	11.49B	11.73B	11.78B
Total Liabilities	14.97B	14.97B	15.11B	15.10B	15.50B	16.23B
Stockholders Equity	2.29B	2.29B	2.55B	3.05B	4.92B	5.54B
Cash Flow
Free Cash Flow	1.18B	796.35M	1.70B	881.57M	918.28M	1.36B
Operating Cash Flow	1.67B	1.29B	2.06B	1.37B	1.43B	1.93B
Investing Cash Flow	-500.00M	-500.00M	-352.62M	-464.32M	-308.68M	-586.60M
Financing Cash Flow	-814.49M	-814.49M	-1.50B	-1.63B	-1.94B	-928.43M

HKBN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1310, the sentiment is Positive. The current price of 6.28 is below the 20-day moving average (MA) of 6.67, below the 50-day MA of 6.49, and above the 200-day MA of 5.66, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 76.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1310.

HKBN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0315	81 Outperform	HK$5.38B	11.32	9.18%	6.79%	0.52%	2.07%
0552	76 Outperform	HK$32.97B	8.48	8.00%	5.24%	1.54%	-2.09%
1883	73 Outperform	HK$9.51B	10.42	8.67%	7.46%	-0.62%	-5.10%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	HK$5.59B	232.00	0.26%	6.40%	6.79%	―
1310	50 Neutral	HK$10.34B	46.33	8.55%	5.45%	4.48%	1820.51%
0008	49 Neutral	HK$45.14B	-159.29	―	1.68%	4.26%	36.68%

HKBN Corporate Events

HKBN Secures Venustech Distribution Deal for Network Security Products in Hong Kong and Macao

HKBN has entered into a Distribution Framework Agreement with Venustech under which HKBN will act as distributor of Venustech’s network security products and solutions in Hong Kong and Macao until 31 December 2028, including exclusive distribution rights for Venus Firewall products in these markets for the first year. As Venustech is a subsidiary of HKBN’s controlling shareholder China Mobile Communications, the arrangement is treated as a continuing connected transaction under Hong Kong listing rules, but given the modest transaction size it is subject only to reporting, annual review and announcement requirements, with no need for a shareholder circular or independent shareholders’ approval, suggesting limited regulatory burden while expanding HKBN’s cybersecurity product portfolio.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Restores Minimum Public Float After China Mobile Hong Kong Offer

HKBN Ltd. announced that its minimum public float requirement under the Hong Kong Listing Rules has been restored, after China Mobile Hong Kong’s voluntary general offer left the public shareholding temporarily below the mandated threshold. Following a reduction in shareholdings by the company’s core connected persons (excluding China Mobile Hong Kong) to about 0.09% of issued shares, approximately 25.07% of HKBN’s total issued share capital is now held by the public, bringing it back into compliance with the 25% minimum public float requirement. This restoration removes a regulatory overhang on HKBN’s listing status, stabilises its shareholder structure with China Mobile Hong Kong retaining roughly 74.84% control, and helps support ongoing trading liquidity and market confidence for minority investors.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Ltd. Announces Successful AGM Results and Key Resolutions

HKBN Ltd. announced the results of its Annual General Meeting held on December 16, 2025, where all proposed resolutions were passed. Key decisions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and reappointment of KPMG as the independent auditor. The successful passing of these resolutions reflects shareholder confidence in the company’s governance and strategic direction.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Ltd. Announces AGM with Key Resolutions on Financials and Governance

HKBN Ltd. has announced its upcoming annual general meeting scheduled for December 16, 2025, where shareholders will address several key resolutions. These include the adoption of the company’s audited financial statements, the declaration of a final dividend, the re-election of several directors, and the re-appointment of KPMG as the independent auditor. Additionally, shareholders will consider granting the board the authority to issue additional shares, which could potentially impact the company’s capital structure and shareholder value.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Secures HK$10.75 Billion Loan Facility with Contingency Clause

HKBN Ltd. announced the signing of a facility agreement with a syndicate of banks for a term loan facility amounting to HK$10.75 billion, maturing 364 days after the initial drawdown, with options for extensions. The agreement includes a clause allowing lenders to demand repayment if China Mobile Hong Kong Company Limited, the controlling shareholder, reduces its stake below 50%, potentially impacting HKBN’s financial stability and shareholder dynamics.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Ltd. Establishes Risk Committee to Strengthen Governance

HKBN Ltd. has established a Risk Committee to assist its Board in assessing and recommending the Group’s risk appetite, profile, and tolerance, as well as overseeing the enterprise risk management framework, policies, and systems. This move is expected to enhance the company’s governance structure and ensure a more robust risk management process, potentially strengthening its market position and providing reassurance to stakeholders.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Ltd. Declares Final Dividend for FY2025

HKBN Ltd. has announced a final ordinary cash dividend of HKD 0.189 per share for the financial year ending 31 August 2025. The dividend reflects the company’s financial performance and commitment to returning value to shareholders, with the payment scheduled for 6 January 2026. This announcement may impact investor sentiment and reflects HKBN’s stable financial position in the telecommunications industry.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Ltd. Strengthens Financial Oversight with Audit Committee Guidelines

HKBN Ltd. has outlined the terms of reference for its Audit Committee, emphasizing its establishment, membership criteria, and operational procedures. The announcement highlights the company’s commitment to maintaining robust financial oversight and governance through the Audit Committee, which consists of independent non-executive directors and meets regularly to ensure compliance and financial integrity.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.

HKBN Ltd. Reports Strong Financial Growth and Unveils New Strategic Direction

HKBN Ltd. reported a strong financial performance for the year ending August 2025, with a 4% increase in total revenue to $11,129 million and a significant rise in net profit from $10 million to $207 million. The company is embarking on a new strategic direction aimed at enhancing service capabilities and market expansion, focusing on digital transformation and maintaining competitive advantage in the global digital landscape.

The most recent analyst rating on (HK:1310) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on HKBN stock, see the HK:1310 Stock Forecast page.