[ET Net News Agency, 3 December 2019] Goldman Sachs revised its earnings estimates for
the HK telecom sector. Specifically, the research house (1) lowered its mobile revenue
forecasts to reflect lower service revenue (especially roaming revenue) and handset sales
assumptions; and (2) lowered its EBIT forecasts factoring in higher amortization costs on
spectrum expenditure and higher network costs in the long term on potentially higher 5G
BTS electricity costs.
Goldman cut 2019-2021 EPS forecasts for HKT Trust and HKT Ltd (06823) by 2%-5%, and DPS
by 2%-5%. It cut its target price by 4% to HK$14.4 and maintained its "buy" rating.
It raised its 2020-22 earnings for HKBN (01310) by 6%-7% and AFF by 3%-6%. Its target
price moved 1% higher to HK$16.2 and maintained its "buy" rating.
The research house cut its 2019-2021 EPS estimates for Hutchison Telecommunications HK
(00215) by 1%-6%. It also cut its target price by 2% to HK$1.62 and maintained its
"neutral" rating.
Goldman trimmed its 2020-2022 EPS forecasts for SmarTone Telecommunications Holdings
(00315) by 4%-11%. It lowered its target price by 3% to HK$6.62 and maintained its
"neutral" rating. (KL)