[ET Net News Agency, 22 January 2018] HSBC Global Research trimmed its target price for
SmarTone Telecommunications (00315) to HK$10.2 from HK$10.4 on lower mobile service
revenue estimates, and maintained its "hold" rating.
The research house said SmarTone's results may have been affected by wireless
competition dating from early September 2017, when HKT launched discounts targeted at it
and its MVNO partner HKBN (01310)(despite HKBN having just 3% of its customers, nearly all
of whom were just a few months into a two-year contract). This competition at the high end
of the market makes it more difficult for all operators to raise prices at the low end of
the market.
But HSBC said SmarTone should be able to offset some of this impact from customer growth
via HKBN, and its continued focus on cost reductions. It cut mobile services revenue
estimates by 1% for FY2017-19 to reflect the fierce competition in the wireless market and
the subdued pricing. The declining ARPU trend also reflects this. (KL)
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00315 SMARTONE TELE
Nominal 
3.710 -0.070 (-1.852%) Others
22/01/2018 14:00
[I-bank focus]HSBC trims SmarTone (00315) to HK$10.2
| Remark: | Real time quote last updated: 16/04/2024 17:59 |
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