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HKT Trust and HKT Ltd (HK:6823)
:6823
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HKT and HKT (6823) AI Stock Analysis

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HK:6823

HKT and HKT

(6823)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
HK$12.50
▲(9.36% 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.

HKT and HKT (6823) vs. iShares MSCI Hong Kong ETF (EWH)

HKT and HKT Business Overview & Revenue Model

Company DescriptionHKT Limited, formerly known as Hong Kong Telecommunications (HKT), is a leading telecommunications service provider in Hong Kong, operating under the stock code 6823. The company offers a broad range of services, including fixed-line and mobile telecommunications, broadband internet, and pay television, serving both consumer and enterprise markets. HKT is also involved in providing advanced technology solutions and digital services, leveraging its extensive telecommunications infrastructure.
How the Company Makes MoneyHKT 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 steady revenue growth, solid profitability margins, and effective cash flow management. The balance sheet is stable, though leverage 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue34.75B34.33B34.13B33.96B32.39B
Gross Profit17.04B16.88B11.24B11.59B11.36B
EBITDA13.66B13.19B13.07B12.80B12.92B
Net Income5.07B4.99B4.90B4.81B5.30B
Balance Sheet
Total Assets116.81B112.12B111.19B109.61B103.17B
Cash, Cash Equivalents and Short-Term Investments2.16B1.72B2.50B3.08B2.75B
Total Debt43.16B46.70B45.87B45.87B44.98B
Total Liabilities77.17B76.74B74.77B72.42B65.27B
Stockholders Equity38.28B35.31B36.37B37.14B37.84B
Cash Flow
Free Cash Flow6.78B6.23B4.98B4.84B4.99B
Operating Cash Flow11.91B11.26B9.98B10.11B9.76B
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
Neutral
Last Price11.43
Price Trends
50DMA
11.64
Negative
100DMA
11.73
Negative
200DMA
10.74
Positive
Market Momentum
MACD
-0.09
Positive
RSI
46.43
Neutral
STOCH
56.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6823, the sentiment is Neutral. The current price of 11.43 is below the 20-day moving average (MA) of 11.51, below the 50-day MA of 11.64, and above the 200-day MA of 10.74, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6823.

HKT and HKT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HK$5.33B11.139.18%6.61%0.52%2.07%
$8.96B9.788.67%7.55%-0.62%-5.10%
$86.26B16.6914.75%2.96%2.33%2.41%
$48.67B4.58-11.27%4.14%2.83%-41.78%
HK$42.16B-148.911.76%4.26%36.68%
$5.25B218.000.26%6.87%6.79%
HK$10.09B76.898.30%4.80%-2.02%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6823
HKT and HKT
11.43
2.36
26.06%
HK:1883
CITIC Telecom International Holdings
2.49
0.43
20.87%
HK:1310
HKBN
6.66
3.36
102.00%
HK:0215
Hutchison Telecommunications Hong Kong Holdings
1.09
0.21
23.58%
HK:0315
SmarTone Telecommunications Holdings
4.84
0.83
20.82%
HK:0008
PCCW Limited
5.54
1.55
38.85%

HKT and HKT Corporate Events

HKT Trust and HKT Limited Reports Resilient 2025 Interim Results
Aug 1, 2025

HKT Trust and HKT Limited, a leading telecommunications provider in Hong Kong, reported its interim results for the first half of 2025, showcasing resilience amidst challenging market conditions. The company saw a 4% increase in total revenue, reaching HK$17,322 million, and a 3% rise in EBITDA to HK$6,380 million, driven by efficiency improvements and AI deployment. Key highlights include a 21% growth in the 5G customer base and an 11% increase in enterprise business revenue. Looking ahead, HKT remains focused on leveraging AI to enhance customer experiences and operational efficiency, positioning itself for continued growth.

HKT Trust and HKT Limited Declare Interim Dividend for 2025
Jul 31, 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
Jul 31, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 17, 2025