HK Stock Market Move | HKBN (01310) has surged nearly 6% to a new high in nearly 1.5 years. Morgan Stanley expects that the progress of additional financing will continue as the company turned loss into profit in the last fiscal year.

HKBN (01310) is now up nearly 6%, hitting a high of HK$4.41, the highest since June last year. As of the time of writing, it is up 5.9% at HK$4.13, with a trading volume of HK$1.17 billion. On the news front, HKBN recently announced its full-year results up to the end of August, with a turnover of HK$10.651 billion, a 9% decrease year-on-year. Shareholders' profit attributable to shareholders was HK$10.277 million, compared to a loss of HK$1.267 billion in the same period last year, turning a loss into a profit. Morgan Stanley believes that sustainability is the key factor and more patience is needed to restore investor confidence. It also believes that HKBN's leverage ratio of less than 5 times should help reduce loan interest rates from 2.75% to 2.2%, further saving on interest. The bank expects progress in refinancing to continue, while the dividend payout ratio in the next 2-3 years may remain at 75% to continue to retain cash to help repair the balance sheet ratio.