UBS: The impact on profitability would be limited if HKT-SS (06823) loses its US business license.

UBS released a research report stating that the potential ban on HKT-SS (06823) subsidiary in the United States by the Federal Communications Commission (FCC) withdrawing its license to operate telecommunications services in the United States is expected to have limited impact on the company's profitability, as the company has minimal exposure to the US market; the US 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 amidst increasing regulatory uncertainty, the forecasted dividend yield of approximately 7.6% in 2026 is attractive and can support the stock price. The bank has now given a "buy" rating to Hong Kong Telecom with a target price of 13.4 Hong Kong dollars.