UBS published a research report that Hong Kong Telecom-SS (06823.HK) medium-term revenue grew by about 3 per cent year-on-year. EBITDA grew by 2 per cent and net profit rose by about 0.5 per cent. Due to strong demand from corporate and consumer customers for digital transformation and the transfer of users to 5G services, service revenue and EBITDA performance exceeded the bank's expectations by about 2 to 6 per cent during the period. The bank pointed out that despite the macro difficulties and fierce competition in the mobile market, Hong Kong Telecom's mobile service revenue still rose 2% year-on-year in the first half of the year. In the first half of the year, 00215.HK and China Mobile Hong Kong have actively reduced the charges for their 5G mobile service plans, but the impact of the market price reduction on Hong Kong Telecom is limited, as the transfer of market share is mainly focused on low-end customers. UBS said that thanks to the continued acceleration of broadband and the demand for digital transformation, Hong Kong Telecom's TSS revenue grew by 5 per cent year-on-year in the first half of the year. UBS believes that the enterprise solutions business is expanding into the mainland and is expected to be the driving force for the continued growth of Hong Kong's telecommunications services revenue. Hong Kong Telecom raised its profit forecast by 2% to 5% from 2022 to 2024 to reflect strong service revenue growth and stable market share in the first half of the year. The bank also expects Hong Kong Telecom to increase its dividend by more than 2% in the next few years, raising its target price from 12.2 yuan to 12.7 yuan, with a "buy" rating, and hopes that the recent relaxation of quarantine requirements should gradually boost revenue from the roaming business.