HKT(HK:06823) Ge Long Hui·2025-10-16 07:10Core Viewpoint - The FCC plans to revoke the operating license of HKT International, a wholly-owned subsidiary of Hong Kong Telecommunications, in the United States, which may lead to a negative market sentiment despite the manageable impact on the company's fundamentals [1] Summary by Category Company Impact - If the revocation process is enacted, the impact on Hong Kong Telecommunications' fundamentals is expected to be controllable, as its international business revenue (excluding Greater China) is projected to account for less than 7% of total revenue in 2024 [1] - The revenue from the U.S. market constitutes approximately 1% of the total revenue, indicating limited exposure to potential losses from this decision [1] - The profit margin from international operations is generally lower than that of local business, further mitigating the potential financial impact [1] Market Sentiment - Due to the uncertainty surrounding the situation, negative market sentiment may continue to escalate, affecting the stock performance of Hong Kong Telecommunications [1] - Morgan Stanley has set a target price of HKD 13 for Hong Kong Telecommunications and maintains an "Overweight" rating, reflecting a cautious optimism despite the challenges [1]