[ET Net News Agency, 5 August 2019] Goldman Sachs initiated coverage on Hutchison
Telecommunications HK (00215) with a "neutral" rating and a target price of HK$1.65.
The research house remains conservative on the overall mobile market owing to the
declining ARPU trend and competitive industry landscape, Goldman views HutchTel's business
outlook as dynamic.
That being said, Goldman noted the company has a strong balance sheet with HK$9.6bn in
net cash, well preparing itself for the upcoming 5G investment cycle. Meanwhile, its
ongoing digital transformation will likely bring opex savings for the company to the
income statement starting from late 2020/21.
Goldman modeled a slight recovery of EBITDA margin to 33.2% from the low base in 2018
and a gradual improvement from 2020 going forward as the company's digital transformation
effort start to materialize into financials. (KL)
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00215 HUTCHTEL HK
Nominal 
1.020 -0.010 (-0.971%) Others
05/08/2019 14:20
{I-bank focus}Goldman starts HutchTel HK (00215) at HK$1.65
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