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HKT Trust and HKT Ltd (HK:6823)
:6823

HKT and HKT (6823) AI Stock Analysis

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HK

HKT and HKT

(OTC:6823)

Rating:75Outperform
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 (6823) vs. iShares MSCI Hong Kong ETF (EWH)

HKT and HKT Business Overview & Revenue Model

Company DescriptionHKT 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 MoneyHKT 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
85
Very Positive
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
78
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
34.75B34.33B34.13B33.96B32.39B
Gross Profit
17.04B16.88B11.24B11.59B11.36B
EBIT
8.25B7.75B7.14B7.07B7.29B
EBITDA
13.66B13.19B12.94B12.71B12.62B
Net Income Common Stockholders
5.07B4.99B4.90B4.81B5.30B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.16B2.07B2.50B3.08B2.75B
Total Assets
116.81B112.12B111.19B109.61B103.17B
Total Debt
43.16B46.70B45.87B45.87B44.98B
Net Debt
41.31B45.07B43.49B43.28B42.78B
Total Liabilities
77.17B76.74B74.77B72.42B65.27B
Stockholders Equity
38.28B35.31B36.37B37.14B37.84B
Cash FlowFree Cash Flow
6.78B6.23B4.98B4.84B4.99B
Operating Cash Flow
11.91B11.26B9.98B10.11B9.76B
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 Price11.42
Price Trends
50DMA
10.65
Positive
100DMA
10.05
Positive
200DMA
9.73
Positive
Market Momentum
MACD
0.24
Positive
RSI
69.76
Neutral
STOCH
68.60
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 11.22, above the 50-day MA of 10.65, and above the 200-day MA of 9.73, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 69.76 is Neutral, neither overbought nor oversold. The STOCH value of 68.60 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$87.17B17.1813.76%10.10%1.23%1.58%
61
Neutral
$14.60B5.88-4.32%3.68%2.75%-30.55%
$1.10B9.458.46%8.10%
$936.60M35.184.51%
$614.06M600.000.06%8.01%
$615.85M8.949.25%8.21%
62
Neutral
HK$40.23B-14.69%7.36%3.33%36.39%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6823
HKT and HKT
11.42
3.43
42.89%
CCTTF
CITIC Telecom International Holdings
0.30
-0.01
-3.23%
HKBNF
HKBN
HTCTF
Hutchison Telecommunications Hong Kong Holdings
0.12
0.00
0.00%
STTFF
SmarTone Telecommunications Holdings
0.50
0.06
13.64%
HK:0008
PCCW Limited
5.19
1.66
47.03%

HKT and HKT Corporate Events

HKT Limited Grants Share Stapled Unit Awards to Employees
May 28, 2025

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
May 15, 2025

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
Apr 25, 2025

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
Apr 17, 2025

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
Apr 2, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.