[ET Net News Agency, 23 January 2020] Morgan Stanley lowered its target price for HKT
Trust and HKT (06823) to HK$14 from HK$14.5 and maintained its "overweight" rating.
The research house lowered its 2019 and 2020 DPS forecasts 1% mainly due to lower mobile
ARPU (average revenue per user) and slightly weaker enterprise spending.
Morgan increased its 2019-21 EPS forecasts by 5-7%, reflecting lower amortization, but
this does not have any impact on DCF (discount cash flow) value. It sees this industry
leader as a defensive telecom stock amid a weak macro environment in Hong Kong, and
expects decent DPS growth of 3% driven by low-single-digit revenue growth and sustainable
cost control. (KL)