UBS: Upping HKT-SS (06823) target price to HKD 13.4, mid-term EBITDA in line with expectations.

UBS released a research report stating that HKT-SS (06823) EBITDA in the first half of the year increased by about 3% year-on-year to 6.4 billion yuan, in line with market expectations. Although operating performance was steady, net profit seemed to be lower than market expectations, which may be due to higher interest expenses than expected, as the favorable factor of lower HIBOR has not been fully reflected in the first half of the year. The bank stated that due to the growth in corporate income, it raised its forecast for fixed network business (TSS) revenue for 2025 to 2027 by 2% to 3%, driving the overall revenue forecast for the period to increase by 1% to 2%. The bank slightly raised the company's target price by about 3%, from 13 yuan to 13.4 Hong Kong dollars, maintaining a "buy" rating.