Equity Analysis /
Hong Kong

HK : CITIC Telecom - Sustainable DPS growth telecom play

    Ray Kwok
    Ray Kwok

    Technology Analyst

    CGS-CIMB
    25 March 2022
    Published by

    CITICTel’s FY21 net profit grew 2% yoy to HK$1.05bn, and formed 94% of our forecast due to lower-than-expected enterprise solution revenue. FY22F business outlook remains resilient, driven by strong SMS services, launch of 5G services in Macau and recovery of enterprise solutions. Maintain Add due to its solid EPS growth (5%/7% in FY22F/23F) and attractive dividend yield (8.6% in FY22F).