HKT Trust and HKT Ltd (HK:6823)
:6823
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HKT and HKT
(6823)
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Rating:67Neutral
Price Target:
HK$13.50
▲(14.99% Upside)
Action:DowngradedDate:04/05/26
The score is driven primarily by steady profitability and modest growth, offset by elevated leverage and weaker 2025 free cash flow conversion. Technicals add support due to an uptrend across key moving averages, while valuation is neutral with a mid-range P/E and a modest dividend yield.
Positive Factors
Stable recurring revenue base
HKT's core revenue mix is subscription-based consumer and enterprise telecom services, creating predictable, recurring cash flows and higher customer lifetime value. Bundling across broadband, mobile and pay-TV reduces churn and supports steady revenue and planning over the medium term.
Negative Factors
Elevated leverage and rising debt
Leverage at roughly 1.1–1.3x and rising total debt in 2025 reduce financial flexibility. In a higher-rate environment elevated debt amplifies interest expense risk and limits the company's ability to pursue discretionary capex, M&A or accelerated deleveraging without pressuring coverage metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable recurring revenue base
HKT's core revenue mix is subscription-based consumer and enterprise telecom services, creating predictable, recurring cash flows and higher customer lifetime value. Bundling across broadband, mobile and pay-TV reduces churn and supports steady revenue and planning over the medium term.
Read all positive factors
HKT and HKT (6823) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$93.19B
Dividend Yield2.86%
Average Volume (3M)8.42M
Price to Earnings (P/E)16.5
Beta (1Y)0.10
Revenue Growth2.33%
EPS Growth2.41%
CountryHK
Employees13,100
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.42
Shares Outstanding7,582,398,400
10 Day Avg. Volume10,372,701
30 Day Avg. Volume8,421,551
Financial Highlights & Ratios
PEG Ratio3.68
Price to Book (P/B)2.37
Price to Sales (P/S)2.39
P/FCF Ratio14.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.20Price Target Upside12.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.76
Revenue Forecast (FY)HK$36.61B
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 segme...
How the Company Makes Money
HKT makes money primarily by selling recurring subscription-based telecommunications services and related solutions. Key revenue streams typically include: (1) Consumer telecommunications services: monthly fees from households and individuals for ...
HKT and HKT Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.55B | 34.75B | 34.33B | 34.13B | 33.96B |
| Gross Profit | 11.58B | 17.04B | 16.88B | 11.24B | 11.59B |
| EBITDA | 14.30B | 13.66B | 13.19B | 13.07B | 12.80B |
| Net Income | 5.29B | 5.07B | 4.99B | 4.90B | 4.81B |
Balance Sheet | |||||
| Total Assets | 121.15B | 116.81B | 112.12B | 111.19B | 109.61B |
| Cash, Cash Equivalents and Short-Term Investments | 2.64B | 2.16B | 1.72B | 2.50B | 3.08B |
| Total Debt | 48.70B | 43.16B | 46.70B | 45.87B | 45.87B |
| Total Liabilities | 82.76B | 77.17B | 76.74B | 74.77B | 72.42B |
| Stockholders Equity | 36.82B | 38.28B | 35.31B | 36.37B | 37.14B |
Cash Flow | |||||
| Free Cash Flow | 6.09B | 6.78B | 6.23B | 4.98B | 4.84B |
| Operating Cash Flow | 11.63B | 11.91B | 11.26B | 9.98B | 10.11B |
| Investing Cash Flow | -5.81B | -5.79B | -5.21B | -4.84B | -5.41B |
| Financing Cash Flow | -5.71B | -5.89B | -6.41B | -5.32B | -4.30B |
HKT and HKT Technical Analysis
Positive
11.74
Price Trends
12.04
Positive
11.90
Positive
11.82
Positive
Market Momentum
0.03
Positive
56.07
Neutral
82.28
Negative
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 11.74 is below the 20-day moving average (MA) of 12.23, below the 50-day MA of 12.04, and below the 200-day MA of 11.82, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 82.28 is Negative, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$5.55B | 4.65 | 9.36% | 6.79% | 0.52% | 2.07% | |
67 Neutral | HK$93.19B | 16.50 | 14.46% | 2.86% | 2.33% | 2.41% | |
67 Neutral | HK$1.75T | 11.87 | 10.31% | 6.00% | 1.49% | 3.06% | |
63 Neutral | HK$5.59B | -223.61 | 0.20% | 6.40% | 6.79% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | HK$11.59B | 18.62 | 8.82% | 5.45% | 4.48% | 1820.51% | |
46 Neutral | HK$45.60B | -1,547.01 | -2.39% | 1.68% | 4.26% | 36.68% |
* Communication Services Sector Average
HK:6823
HKT and HKT
12.29
2.61
26.91%
HK:0941
China Mobile
80.05
5.62
7.55%
HK:1310
HKBN
7.84
3.06
64.09%
HK:0215
Hutchison Telecommunications Hong Kong Holdings
1.16
0.29
32.88%
HK:0315
SmarTone Telecommunications Holdings
5.04
1.24
32.70%
HK:0008
PCCW Limited
5.89
1.50
34.17%
HKT and HKT Corporate Events
HKT Strengthens Board Governance With Appointment of Independent Director Ng Wai Lun
Apr 1, 2026
HKT Trust and HKT Limited have appointed Mr. Ng Wai Lun as an independent non-executive director to both the trustee-manager and the company, as well as a member of key board committees including audit, remuneration and regulatory compliance, effe...
HKT Trust and HKT Limited Detail Board and Committee Governance Structure
Apr 1, 2026
HKT Trust and HKT Limited announced the current composition of their boards of directors, which are identical across the trustee-manager and the company, led by Executive Chairman Li Tzar Kai, Richard and Group Managing Director Hui Hon Hing, Susa...
HKT Trust and HKT Limited Call 2026 AGM, Propose Final Payout and New Issuance Mandate
Apr 1, 2026
HKT Trust and HKT Limited have scheduled their annual general meeting for 21 May 2026 in Hong Kong as a hybrid event for unitholders and shareholders. The agenda includes adoption of the 2025 audited financial statements for the trust, company and...
PCCW and HKT Monetise Further Stake in Network Subsidiary at Premium Valuation
Mar 31, 2026
PCCW and its telecom arm HKT have agreed to sell a further interest in an indirect subsidiary engaged in passive network operations for US$209.45 million in cash to an existing investor. Despite the sale, the target company will remain an indirect...
HKT Delivers 2025 Growth as AI and Fibre Upgrades Bolster Hong Kong Telecom Position
Feb 9, 2026
HKT reported resilient performance for 2025 despite geopolitical and macroeconomic headwinds, with total revenue rising 5% to HK$36.55 billion, EBITDA up 4% to HK$14.23 billion, and adjusted funds flow also increasing 4% to HK$6.20 billion, suppor...
HKT Trust and HKT Limited Declare Final 2025 Cash Dividend on Stapled Units
Feb 9, 2026
HKT Trust and HKT Limited have declared a final ordinary cash dividend of HKD 0.4797 per share stapled unit for the financial year ended 31 December 2025, payable in Hong Kong dollars. The structure of the stapled units means investors hold a comb...
HKT Receives Offer for Additional Stake Sale in Passive Network Subsidiary
Feb 9, 2026
PCCW, HKT Trust and HKT Limited announced that HKT has received an offer from CM Silk Road Capital Management Limited, a company controlled by China Merchants Capital Holdings, to acquire an additional 9% equity interest in an HKT indirect subsidi...
HKT Trust and HKT Limited Board Set February Meeting to Approve 2025 Results and Consider Payout
Jan 28, 2026
HKT Trust and HKT Limited have scheduled board meetings for 9 February 2026 to review and approve the annual results for the year ended 31 December 2025 for the trust, the operating company, their subsidiaries, and the trustee-manager. At the same...
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.