UBS: The impact on profits will be limited if HKT's U.S. business license is revoked

Regarding the Federal Communications Commission (FCC) of the United States' plan to revoke the telecommunications service license of HKT-SS (06823.HK) in the United States, UBS believes that the potential ban will have a limited impact on the company's profitability, as the company's exposure to the U.S. market is very small; the U.S. market accounts for less than 1% of the company's total revenue, and the profit margin of this business is relatively low.

The bank believes that in the face of increasing regulatory uncertainty, a forecasted dividend yield of approximately 7.6% for 2026 is attractive and can support the stock price. The bank currently gives HKT a "Buy" rating, with a target price of HKD 13.4