DBS: Hong Kong Telecom Sector

Hong Kong Telecom Sector: Shifting preference from mobile to fixed-line

• Fixed-line players prioritise maximising ARPU over previous subscriber growth, driving a robust 4.5% residential market growth in FY24 
• Enterprise business resumes growth post-COVID, riding the wave of enterprise digitalisation 
• Mobile roaming revenue is on track to reach 85-90% of pre-COVID level in FY24, but largely priced in
• BUY fixed-line names; prefer HKBN (1310 HK) for its attractive yield of 12% and pure fixed-line exposure