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PCCW Limited
(0008)
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Rating:54Neutral
Price Target:
HK$5.00
â–¼(-6.72% Downside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by elevated financial risk (very high leverage and negative equity) and recent net losses, despite resilient operating results and strong cash flow. Technical indicators are constructive with the stock trading above major moving averages and positive momentum. Valuation is mixed: an attractive dividend yield is offset by a negative P/E driven by losses.
Positive Factors
Stable Operating Profitability
Modest revenue growth alongside mid-teens operating margins and EBITDA margins above 30% indicates the core operation remains profitable at the operating level. This provides a durable base for funding network investment and serving customers even when bottom-line results fluctuate.
Negative Factors
Negative Equity and High Leverage
Debt has risen while equity has shrunk sharply, turning stockholders’ equity negative in 2025. This weakens financial flexibility, increases capital-structure risk, and can constrain the group’s ability to absorb operating setbacks or fund growth without relying more heavily on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Operating Profitability
Modest revenue growth alongside mid-teens operating margins and EBITDA margins above 30% indicates the core operation remains profitable at the operating level. This provides a durable base for funding network investment and serving customers even when bottom-line results fluctuate.
Read all positive factors
PCCW Limited (0008) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$38.79B
Dividend Yield7.63%
Average Volume (3M)6.85M
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth7.10%
EPS Growth70.22%
CountryHK
Employees14,600
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding7,747,762,700
10 Day Avg. Volume7,805,438
30 Day Avg. Volume6,845,837
Financial Highlights & Ratios
PEG Ratio10.50
Price to Book (P/B)-21.25
Price to Sales (P/S)1.04
P/FCF Ratio5.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.11
Revenue Forecast (FY)HK$41.39B
PCCW Limited Business Overview & Revenue Model
Company Description
PCCW Limited, founded in 1925 and headquartered in Quarry Bay, Hong Kong, operates as a global telecommunications and technology services provider across Hong Kong, mainland China, Singapore, and other international markets. Its diverse portfolio ...
How the Company Makes Money
PCCW makes money primarily by selling telecommunications, connectivity, pay-TV/content, and enterprise technology services, with most operating profit historically attributed to its telecommunications-focused business (via HKT). Key revenue stream...
PCCW Limited Financial Statement Overview
Summary
Income Statement
47
Neutral
Balance Sheet
22
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.53B | 40.25B | 37.56B | 36.35B | 36.06B | 35.45B |
| Gross Profit | 10.75B | 11.01B | 18.43B | 18.23B | 18.15B | 17.73B |
| EBITDA | 13.34B | 13.42B | 11.22B | 11.82B | 10.97B | 11.26B |
| Net Income | 209.00M | -27.00M | -66.00M | -471.00M | 393.00M | 1.26B |
Balance Sheet | ||||||
| Total Assets | 108.64B | 105.41B | 98.76B | 94.56B | 95.06B | 94.22B |
| Cash, Cash Equivalents and Short-Term Investments | 4.06B | 4.06B | 2.58B | 2.71B | 3.13B | 5.04B |
| Total Debt | 68.56B | 68.77B | 53.94B | 54.19B | 51.65B | 49.22B |
| Total Liabilities | 105.38B | 103.86B | 87.24B | 84.86B | 82.30B | 78.74B |
| Stockholders Equity | 934.00M | -1.97B | 7.49B | 2.48B | 11.44B | 14.36B |
Cash Flow | ||||||
| Free Cash Flow | 2.67B | 7.75B | 3.08B | 5.32B | 3.43B | 1.78B |
| Operating Cash Flow | 10.10B | 9.81B | 10.63B | 13.35B | 10.34B | 9.70B |
| Investing Cash Flow | -7.75B | -8.15B | -7.70B | -7.46B | -6.01B | -7.62B |
| Financing Cash Flow | -613.00M | -1.37B | -3.26B | -6.27B | -5.83B | -1.57B |
PCCW Limited Technical Analysis
Negative
5.36
Price Trends
5.24
Negative
5.37
Negative
5.47
Negative
Market Momentum
-0.08
Positive
39.90
Neutral
25.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0008, the sentiment is Negative. The current price of 5.36 is above the 20-day moving average (MA) of 5.09, above the 50-day MA of 5.24, and below the 200-day MA of 5.47, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 25.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0008.
PCCW Limited Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$92.13B | 17.36 | 14.86% | 6.81% | 7.09% | 4.21% | |
70 Outperform | HK$1.75T | 11.53 | 8.81% | 6.78% | 4.21% | -5.91% | |
68 Neutral | HK$159.42B | 6.74 | 6.99% | 8.92% | 3.82% | -22.79% | |
61 Neutral | HK$703.95B | 22.69 | 6.14% | 6.43% | 1.18% | -12.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | HK$38.79B | -459.63 | -40.50% | 7.63% | 7.10% | 70.22% | |
53 Neutral | HK$7.86B | 24.98 | 14.97% | 6.47% | 6.22% | 42.92% |
* Communication Services Sector Average
HK:0008
PCCW Limited
5.01
-0.19
-3.62%
HK:0728
China Telecom
4.51
-0.65
-12.68%
HK:0941
China Mobile
80.00
0.20
0.25%
HK:0762
China Unicom (Hong Kong)
5.21
-3.96
-43.17%
HK:1310
HKBN
5.32
-1.17
-18.09%
HK:6823
HKT and HKT
12.15
1.55
14.59%
PCCW Limited Corporate Events
PCCW Announces Change of Company Secretary and Authorised Representative
Oct 15, 2026
PCCW Limited has announced a change in key governance roles, with Group General Counsel and Company Secretary Vanessa Cheung resigning and ceasing to serve as an authorised representative effective 15 October 2026. The board noted that Cheung has ...
PCCW and HKT Complete US$209 Million Sale of Subsidiary Interests
Sep 16, 2026
PCCW Limited and its affiliated entities HKT Trust and HKT Limited have completed the sale of interests in a subsidiary, referred to as the Target Interests, to an external party. The transaction, which closed on 16 September 2026, was settled in ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.