HKT and HKT (6823) AI Stock Analysis

• Market Cap: HK$87.88B
• Dividend Yield: 2.86%
• Average Volume (3M): 8.42M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.08
• Revenue Growth: 2.33%
• EPS Growth: 2.41%
• Country: HK
• Employees: 13,100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.27
• Shares Outstanding: 7,582,398,400
• 10 Day Avg. Volume: 10,372,701
• 30 Day Avg. Volume: 8,421,551
• PEG Ratio: 9.47
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 10.72
• 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$13.20
• Price Target Upside: 12.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$12.50 ▲(6.47% Upside)

The overall stock score of 72 reflects strong financial performance and fair valuation, offset by bearish technical indicators. The company's robust cash flow and profitability support its financial health, while technical analysis suggests caution due to current bearish trends.

Positive Factors

Cash Flow Management

Strong cash flow management supports operational and strategic initiatives, ensuring the company can invest in growth and weather economic fluctuations.

Profitability Margins

High profitability margins indicate efficient cost management and pricing power, contributing to sustained financial health and competitive advantage.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and adapt to changing consumer needs, supporting long-term business sustainability.

Negative Factors

Debt Levels

While manageable, the relatively high debt level requires careful monitoring to prevent potential financial strain, which could limit future investment capabilities.

Leverage Concerns

A solid equity base is positive, but high leverage could pose risks if economic conditions worsen, potentially impacting the company's financial flexibility.

Market Sentiment

Bearish market sentiment, while not directly affecting fundamentals, can impact investor confidence and the company's ability to raise capital or pursue strategic initiatives.

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 streams, primarily from its telecommunications services, which include mobile and fixed-line voice services, broadband internet subscriptions, and pay television services. Mobile services represent a significant portion of its revenue, with the company offering a variety of mobile plans and value-added services. Additionally, HKT earns income from enterprise solutions, which consist of data and cloud services provided to businesses. The company also benefits from partnerships with technology providers, enhancing its service offerings and customer experience. Moreover, revenues from advertising and content distribution related to its pay television services contribute to its overall earnings, making HKT a diversified player in the telecommunications and digital services sector.

HKT and HKT Financial Statement Overview

Summary

The company demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is stable, though leverage levels should be monitored. Cash flow management is robust, supporting operational and strategic initiatives.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.41B	34.75B	34.33B	34.13B	33.96B	32.39B
Gross Profit	17.17B	17.04B	16.88B	11.24B	11.59B	11.36B
EBITDA	10.52B	13.66B	13.19B	13.07B	12.80B	12.92B
Net Income	5.15B	5.07B	4.99B	4.90B	4.81B	5.30B
Balance Sheet
Total Assets	118.50B	116.81B	112.12B	111.19B	109.61B	103.17B
Cash, Cash Equivalents and Short-Term Investments	1.95B	2.16B	1.72B	2.50B	3.08B	2.75B
Total Debt	45.34B	43.16B	46.70B	45.87B	45.87B	44.98B
Total Liabilities	80.62B	77.17B	76.74B	74.77B	72.42B	65.27B
Stockholders Equity	36.30B	38.28B	35.31B	36.37B	37.14B	37.84B
Cash Flow
Free Cash Flow	9.84B	6.78B	6.23B	4.98B	4.84B	4.99B
Operating Cash Flow	11.88B	11.91B	11.26B	9.98B	10.11B	9.76B
Investing Cash Flow	-358.00M	-5.79B	-5.21B	-4.84B	-5.41B	-6.63B
Financing Cash Flow	-9.67B	-5.89B	-6.41B	-5.32B	-4.30B	-3.50B

HKT and HKT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.74
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 11.74 is above the 20-day moving average (MA) of 11.67, below the 50-day MA of 11.75, and above the 200-day MA of 11.42, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 46.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6823.

HKT and HKT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0315	81 Outperform	HK$5.28B	11.04	9.18%	6.79%	0.52%	2.07%
1883	73 Outperform	HK$9.29B	10.14	8.67%	7.46%	-0.62%	-5.10%
6823	72 Outperform	HK$87.88B	17.05	14.75%	2.86%	2.33%	2.41%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	HK$5.54B	230.00	0.26%	6.40%	6.79%	―
1310	50 Neutral	HK$10.01B	45.19	8.55%	5.45%	4.48%	1820.51%
0008	49 Neutral	HK$42.51B	-150.00	―	1.68%	4.26%	36.68%

HKT and HKT Corporate Events

PCCW and HKT Renew Connected Transaction Frameworks with FWD to 2028

PCCW, HKT Trust and HKT have entered into a new series of continuing connected transaction framework agreements with the FWD Group, covering telecommunications and related services, insurance and related services, insurance products supplied by FWD, and branding and marketing arrangements for the three financial years ending 31 December 2028. Because FWD is controlled by Richard Li, who is also chairman and a major shareholder of PCCW and executive chairman of HKT and its trustee-manager, the deals are treated as connected transactions under Hong Kong’s Listing Rules; their size triggers announcement, reporting and annual review requirements but remains below the thresholds requiring independent shareholders’ approval, indicating an extension of an established commercial relationship with limited governance impact but ongoing disclosure obligations for investors.

The most recent analyst rating on (HK:6823) stock is a Buy with a HK$12.50 price target. To see the full list of analyst forecasts on HKT and HKT stock, see the HK:6823 Stock Forecast page.

HKT Renews Connected Carriage Services Deals With PCCW to 2028

HKT Trust and HKT Limited have announced the renewal of certain continuing connected transactions with the PCCW Group for a further three years from 1 January 2026 to 31 December 2028, including the provision of carriage services by HK Telecom to PCCW’s media businesses under new annual caps that match the levels set for 2023–2025. The renewed agreement with Esencia, acting for PCCW’s media subsidiaries, will keep pricing on a marginal-cost and cost-plus (around 5%) basis, allowing the Media Group to benefit from network enhancements while contributing to additional capacity or field service costs, and the transaction structure remains subject to Hong Kong Listing Rules reporting, announcement and annual review requirements but exempt from independent shareholders’ approval due to its size.

The most recent analyst rating on (HK:6823) stock is a Buy with a HK$12.50 price target. To see the full list of analyst forecasts on HKT and HKT stock, see the HK:6823 Stock Forecast page.

HKT Limited Updates Nomination Committee Terms to Enhance Board Governance

HKT Limited has revised the terms of reference for its Nomination Committee, which plays a crucial role in ensuring a fair and transparent process for appointing and reappointing directors. The committee’s responsibilities include reviewing the board’s composition, identifying qualified candidates, and recommending appointments to align with the company’s corporate strategy. This move aims to maintain a diverse and skilled board, enhancing the company’s governance and strategic direction.

The most recent analyst rating on (HK:6823) stock is a Buy with a HK$12.50 price target. To see the full list of analyst forecasts on HKT and HKT stock, see the HK:6823 Stock Forecast page.