UBS: Maintained a "buy" rating on HKT-SS (06823) and raised the target price to 13 Hong Kong dollars.

UBS released a research report stating that it maintains a "buy" rating for HKT-SS (06823) with a target price raised from HK$12.5 to HK$13. Hong Kong Telecom recorded service revenue of HK$16.3 billion in the second half of last year, an increase of 1.4% year-on-year, which is roughly in line with the bank's forecast. EBITDA was HK$7.6 billion, up 2.5% year-on-year, and net profit was HK$3.1 billion, up 1.3% year-on-year. However, EBITDA and net profit were 1-7% lower than the bank's forecast, mainly due to a decrease in mobile phone sales and an increase in income tax. The report mentioned that Hong Kong Telecom declared a final dividend of HK$0.4588 per share, an increase of 3.2% from the same period last year, with a dividend payout ratio of 100%, similar to the bank's forecast, implying a dividend yield of over 8% for the year. Following the performance announcement, the bank's profit forecast for Hong Kong Telecom remains largely unchanged.