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HSBC trims SmarTone (00315) to HK$9.7
HSBC Global Research trimmed its target price
for SmarTone Telecommunications (00315) to HK$9.7 from HK$10.2 pm earnings revision, and 
reiterated its "hold" rating.
  The research house said SmarTone's postpaid service revenue decreased 6% yoy to
HK$2,522m reflecting intensified competition, as well as ongoing migration to SIM-only 
plans. Nevertheless, accounts grew by 2.2m (up 20% yoy), while the postpaid churn rate 
declined to 0.8%, with MVNO growth likely a key factor.
  HSBC reduced its FY2018/19 revenues by 8% on lower handset sales. It also cut its EBITDA
forecasts by 5% and 3% respectively.
  It believes that SmarTone continues to execute well in a tough market. It has launched 
new marketing strategies to cater to demands from different customer segments, including 
the new online-only brand Birdie Mobile. It is also proactively testing 5G technologies
and expanding its Narrow Band (NB) Internet of Things network. 

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