HKT and HKT (6823) AI Stock Analysis

• Market Cap: $88.38B
• Dividend Yield: 2.9%
• Average Volume (3M): 7.65M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.07
• 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: 7,579,776,400
• 10 Day Avg. Volume: 6,565,424
• 30 Day Avg. Volume: 7,653,715
• 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: 1.56
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 8.08
• Enterprise Value/Ebitda: 11.72
• 1Y Price Target: $13.00
• Price Target Upside: 11.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: HK$12.50 ▲(7.20% Upside)

HK:6823 exhibits strong financial health with robust profitability and cash flow management, which is the most significant factor in its score. However, technical analysis indicates bearish momentum, and the valuation metrics suggest the stock is fairly valued. The absence of recent earnings call data or notable corporate events limits further insights.

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 makes money through a diversified revenue model primarily centered around its telecommunications services. The company's key revenue streams include subscription fees from its mobile and fixed-line telephony services, broadband internet packages, and data services. Additionally, HKT generates income from value-added services such as international calling, roaming services, and enterprise solutions which cater to corporate clients. The company also benefits from its partnerships with technology and content providers, enhancing its service offerings and customer base. HKT's robust infrastructure and strategic initiatives enable it to maintain a strong market position and drive consistent revenue growth.

HKT and HKT Financial Statement Overview

Summary

The company demonstrates strong financial performance with steady revenue growth, solid profitability margins, and effective cash flow management. The balance sheet is stable, though leverage 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
EBITDA	13.66B	13.19B	13.07B	12.80B	12.92B
Net Income	5.07B	4.99B	4.90B	4.81B	5.30B
Balance Sheet
Total Assets	116.81B	112.12B	111.19B	109.61B	103.17B
Cash, Cash Equivalents and Short-Term Investments	2.16B	1.72B	2.50B	3.08B	2.75B
Total Debt	43.16B	46.70B	45.87B	45.87B	44.98B
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: 11.66
• 50DMA: Negative
• 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:6823, the sentiment is Positive. The current price of 11.66 is above the 20-day moving average (MA) of 11.61, below the 50-day MA of 11.90, and above the 200-day MA of 10.55, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 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
0315	81 Outperform	$5.12B	10.77	9.18%	6.88%	0.52%	2.07%
1883	71 Outperform	$8.99B	9.90	8.67%	7.74%	-0.62%	-5.10%
6823	66 Neutral	$88.38B	17.35	14.75%	2.90%	2.33%	2.41%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	$5.20B	218.00	0.26%	6.87%	6.79%	―
1310	57 Neutral	$10.83B	82.53	8.30%	4.37%	-2.02%	―
0008	54 Neutral	HK$41.85B	―	-14.69%	1.81%	4.26%	36.68%

HKT and HKT Corporate Events

HKT Trust and HKT Limited Declare Interim Dividend for 2025

HKT Trust and HKT Limited announced an interim cash dividend of HKD 0.338 per share for the six months ending June 30, 2025, with payment scheduled for September 4, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence its market positioning by potentially attracting more investors seeking dividend income.

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 Reports Revenue Growth and AI-Driven Enhancements Amidst Challenging Conditions

HKT Trust and HKT Limited reported a 4% increase in total revenue to HK$17,322 million for the first half of 2025, driven by growth in broadband and mobile services, as well as a significant expansion in their enterprise business. The company is strategically deploying AI to improve customer service and operational processes, which has resulted in increased customer upgrades to 5G and 2.5G services and a rise in average revenue per user. Despite challenging geopolitical and economic conditions, HKT remains optimistic about future growth, supported by recent deleveraging and favorable interest rate trends.

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 Upcoming Board Meetings for Interim Results

HKT Trust and HKT Limited have announced that their board meetings are scheduled for July 31, 2025, to approve the interim results for the first half of the year and to consider the payment of an interim dividend. This announcement signifies a routine financial review and decision-making process that could impact stakeholders through potential dividend distributions, reflecting the company’s ongoing financial health and strategic management.

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 Limited Grants Share Stapled Unit Awards to Executive Director

HKT Limited has announced the grant of 356,302 share stapled unit awards to its Executive Director and Group Managing Director, Hui Hon Hing, Susanna, under the 2024 Share Stapled Unit Award Scheme. This move, approved by the Independent Non-Executive Directors, reflects the company’s recognition of the executive’s contributions and the Group’s performance, with no performance targets or clawback mechanisms attached to the awards. The announcement indicates the company’s commitment to rewarding its leadership, potentially impacting its operational dynamics and stakeholder relations.

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 Grants Share Stapled Unit Awards to Employees and Director

HKT Limited announced the grant of 76,865 share stapled unit awards under its 2024 Share Stapled Unit Award Scheme. These awards were distributed to employees and a non-executive director, Peter Anthony Allen, with no purchase price and a vesting period extending up to 2027. The grants reflect the company’s recognition of employee contributions and are part of its strategy to incentivize and retain talent. The announcement indicates a stable performance by the company, with no performance targets or clawback mechanisms attached to the awards, suggesting confidence in the company’s operational stability and future prospects.

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.