HKT and HKT (6823) AI Stock Analysis

• Market Cap: HK$87.17B
• Dividend Yield: 10.1%
• Average Volume (3M): 8.02M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.09
• Revenue Growth: 1.23%
• EPS Growth: 1.58%
• Country: HK
• Employees: 13,100
• Sector: Communication Services
• Sector Strength: 86
• Industry: Telecommunications Services
• EPS (TTM): 0.67
• Shares Outstanding: 7,579,776,400
• 10 Day Avg. Volume: 9,146,839
• 30 Day Avg. Volume: 8,016,160
• PEG Ratio: 11.28
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$13.00 ▲(13.84%Upside)

HKT's stock is rated positively due to strong financial performance and an attractive dividend yield. Technical indicators show bullish momentum, though caution is advised as the stock approaches overbought levels. Valuation metrics are favorable, suggesting a balanced risk-reward profile.

HKT and HKT Business Overview & Revenue Model

Company Description

HKT Trust and HKT Limited provides telecommunications services in Hong Kong, Mainland China, and internationally. It operates through Telecommunications Services, Mobile, Pay TV, and Other Businesses segments. The Telecommunications Services segment offers telecommunications and related services, including local telephony, local data and broadband, and international telecommunications, as well as enterprise solutions; and other telecommunications businesses, such as customer premises equipment sales, outsourcing, consulting, and contact centers. The Mobile segment provides mobile telecommunications services. The Pay TV segment offers interactive pay-TV services. The Other Businesses segment provides financial services, such as mobile payments, merchant services, O2O solutions, and a mobile financing platform; and The Club, a loyalty program. The company also offers 5G, cloud computing, Internet of Things, and artificial intelligence solutions to enterprises; web services; network-based telecommunications and satellite-based services; outsourced contact center services; customer and consultancy services; customer relationship and customer contact management solutions and services; telecommunications call center services; and insurance and reinsurance services. In addition, it provides system integration, software development, and technical consultancy services; and sells mobile handsets and accessories, as well as telecommunication products and services. Further, the company sells advertising in various telephone directories and on the Internet; distributes media content; and publishes directories. The company was incorporated in 2011 and is headquartered in Quarry Bay, Hong Kong. HKT Trust and HKT Limited is a subsidiary of PCCW Limited.

How the Company Makes Money

HKT generates revenue through multiple channels, primarily focusing on its telecommunications services. Key revenue streams include subscription fees from its mobile and broadband services, where customers pay for monthly plans that provide voice, data, and internet access. Additionally, HKT earns through its fixed-line services, offering local and international call services to households and businesses. The company also capitalizes on its media and entertainment offerings, which include paid TV subscriptions and digital content services. Revenue is further supplemented by enterprise solutions, providing IT and telecommunications services to businesses. Strategic partnerships with other technology and telecom companies enhance its offerings and expand its market reach, contributing significantly to its earnings.

HKT and HKT Financial Statement Overview

Summary

HKT demonstrates strong financial performance with consistent revenue growth, solid profitability margins, and effective cash flow management. However, the relatively high total debt level should be monitored.

Income Statement

The company's income statement shows a steady revenue growth trend with a 1.23% increase from 2023 to 2024. The gross profit margin remains solid at approximately 49.03% for 2024, indicating strong profitability. The net profit margin is healthy at 14.58%. EBIT and EBITDA margins are also robust, reflecting efficient operational management. There are no significant concerns on the profitability front.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 1.13 for 2024. The equity ratio stands at 32.76%, indicating a solid equity base relative to total assets. Return on Equity (ROE) is satisfactory at 13.24%, showcasing effective use of shareholders' equity. However, the relatively high total debt level could pose potential risks if not managed well.

Cash Flow

Cash flow analysis reveals a positive trajectory with free cash flow growth of 8.96% from 2023 to 2024. The operating cash flow to net income ratio is 2.35, reflecting strong cash generation relative to net income. The free cash flow to net income ratio is 1.34, indicating ample free cash flow coverage. Overall, cash flow management appears robust, supporting operational and strategic initiatives.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
34.75B	34.33B	34.13B	33.96B	32.39B
	Gross Profit
17.04B	16.88B	11.24B	11.59B	11.36B
	EBIT
8.25B	7.75B	7.14B	7.07B	7.29B
	EBITDA
13.66B	13.19B	12.94B	12.71B	12.62B
	Net Income Common Stockholders
5.07B	4.99B	4.90B	4.81B	5.30B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.16B	2.07B	2.50B	3.08B	2.75B
	Total Assets
116.81B	112.12B	111.19B	109.61B	103.17B
	Total Debt
43.16B	46.70B	45.87B	45.87B	44.98B
	Net Debt
41.31B	45.07B	43.49B	43.28B	42.78B
	Total Liabilities
77.17B	76.74B	74.77B	72.42B	65.27B
	Stockholders Equity
38.28B	35.31B	36.37B	37.14B	37.84B
Cash Flow		Free Cash Flow
6.78B	6.23B	4.98B	4.84B	4.99B
	Operating Cash Flow
11.91B	11.26B	9.98B	10.11B	9.76B
	Investing Cash Flow
-5.79B	-5.21B	-4.84B	-5.41B	-6.63B
	Financing Cash Flow
-5.89B	-6.41B	-5.32B	-4.30B	-3.50B

HKT and HKT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6823, the sentiment is Positive. The current price of 11.42 is above the 20-day moving average (MA) of 11.25, above the 50-day MA of 10.68, and above the 200-day MA of 9.74, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6823.

HKT and HKT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6823	75 Outperform	HK$87.17B	17.18	13.76%	10.10%	1.23%	1.58%
Sector *	61 Neutral	$14.60B	5.88	-4.32%	3.68%	2.75%	-30.55%
CCTTF		$1.10B	9.45	8.46%	8.10%	―	―
HKBNF		$936.60M	35.18	4.51%	―	―	―
HTCTF		$614.06M	600.00	0.06%	8.01%	―	―
STTFF		$615.85M	8.94	9.25%	8.21%	―	―
0008	62 Neutral	HK$40.23B	―	-14.69%	7.36%	3.33%	36.39%

HKT and HKT Corporate Events

HKT Limited Grants Share Stapled Unit Awards to Employees

HKT Limited has announced the grant of 391,527 share stapled unit awards under its 2024 Share Stapled Unit Award Scheme. These awards, which are granted to employee participants, have no purchase price and are set to vest over one to two years. The grant reflects the company’s recognition of employee contributions and performance, with no additional performance targets or clawback mechanisms attached. This initiative underscores HKT’s commitment to incentivizing its workforce and aligns with its strategic goals to enhance employee engagement and retention.

The most recent analyst rating on (HK:6823) stock is a Buy with a HK$12.00 price target. To see the full list of analyst forecasts on HKT and HKT stock, see the HK:6823 Stock Forecast page.

HKT Trust and HKT Limited Successfully Pass All Resolutions at AGM

At the annual general meeting held on May 15, 2025, HKT Trust and HKT Limited successfully passed all proposed resolutions, including the adoption of financial statements, declaration of final distributions, re-election of directors, and reappointment of auditors. These resolutions reflect the company’s stable governance and strategic direction, potentially reinforcing its market position and ensuring continued stakeholder confidence.

The most recent analyst rating on (HK:6823) stock is a Buy with a HK$12.00 price target. To see the full list of analyst forecasts on HKT and HKT stock, see the HK:6823 Stock Forecast page.

HKT Trust and HKT Limited Announce Share Stapled Unit Awards

HKT Trust and HKT Limited have announced the grant of 1,805,517 share stapled units under their 2024 Share Stapled Unit Award Scheme. This grant includes awards to employee participants and an executive director, with no purchase price and specific vesting periods. The awards are based on past performance, and there are no performance targets or clawback mechanisms involved. This initiative is likely to impact employee motivation and retention positively, aligning their interests with company performance.

HKT Limited Releases 2024 Financial Statements Highlighting Strong Market Presence

HKT Limited has released its audited consolidated financial statements for the year ended December 31, 2024, highlighting that HKTGH’s revenue accounted for the entirety of HKT Limited’s total revenue. HKTL, a subsidiary of HKTGH, contributed to about half of this revenue through its telecommunications services. This financial disclosure underscores HKT’s significant market presence in Hong Kong’s telecommunications sector and its strategic operations in broader markets.

HKT Trust and HKT Limited Announce 2025 Annual General Meeting

HKT Trust and HKT Limited have announced their Annual General Meeting, scheduled for May 15, 2025, which will be held as a hybrid meeting in Hong Kong. The agenda includes the adoption of financial statements, declaration of a final distribution, re-election of directors, and re-appointment of auditors. Additionally, a resolution will be considered to grant the directors a mandate to issue additional shares and units, which could impact the company’s capital structure and shareholder value.