[ET Net News Agency, 19 November 2020] Goldman Sachs lowered its target price for Hong
Kong Broadband Network (HKBN) (01310) to HK$15.1 from HK$16.4 and maintained its "buy"
rating.
The research house said HKBN's FY2020 results were broadly in line with Goldman's
estimates. But management's guidance on FY2021 dividend of high-single-digit growth was a
disappointment to the market (versus prior Goldman's forecast at 21.2%), which leads
FY2019-21 cumulative AFF (Adjusted Free Cash Flow) per share to fall below the low-end
(HK$2.53) of target range set in its Co-ownership plan.
On the back of FY2020 results and updated guidance, Goldman revised down its FY2021/22
EBITDA forecasts by 9.9%/10.1% and DPS by 11.2%/6.2%, mainly to reflect deeper than
expected business disruption from COVID.
Nonetheless, Goldman remains positive on HKBN's long-term outlook in the post-COVID era,
with a high-quality network and broadening service coverage. (KL)