[ET Net News Agency, 23 January 2020] Morgan Stanley lowered its target price for
Hutchison Telecommunications HK (HutchTel)(00215) to HK$1.7 from HK$2 and maintained its
"equal-weight" rating.
Despite its compelling 1.5x 2020 EV/EBITDA, the lowest among the covered telcos in Asia,
the research house highlighted that 75% of HutchTel's market cap is net cash on the
balance sheet. The company's conservative approach to keep cash on hand makes strategic
sense amid the weak macro environment, but its valuation warrants a bigger discount on the
cash.
Also, Morgan thinks it will be challenging for HutchTel to generate earnings growth
given the higher spectrum amortization cost in the next 2-3 years. It fine-tuned its 2019
EPS estimate and increased 2020 EPS forecast 5.2% on the cost-saving from its digital
transformation. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00215 HUTCHTEL HK
Nominal 
1.010 0.000 (0.000%) Others
23/01/2020 17:55
{I-bank focus}Morgan cuts HutchTel HK (00215) to HK$1.7
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |