[ET Net News Agency, 9 February 2018] HSBC Global Research lifted its target price for
PCCW (00008) to HK$5.1 from HK$5, and maintained its "hold" rating as it is cautious on
the Hong Kong mobile market that could affect HKT's valuation.
The research house said PCCW's FY2017 core operating expense was down 10% yoy reflecting
effective cost control. The company announced full year dividend of HK29.75c, representing
5% growth yoy thanks to a strengthened liquidity situation and greater contribution from
HKT fund flows.
HSBC said it is uncertain about whether PCCW will be able to achieve breakeven of its
new media business in 2019. But it is confident about PCCW's solutions business and
forecast 5-8% yoy growth in revenue for FY2018-20. (KL)