Xin Technology (Text/Shi Xin)
Taiwan Telecom's three male Dharma sermons will be held one after another. Among them, Chunghua Telecom and Taiwan Telecom are expected to hold Dharma sermons this Wednesday (30th) and Thursday (31st). Far EasTone will also hold Dharma sermons. A Dhamma talk will be held on February 20th. However, foreign investment Deutsche Securities believes that the outlook for telecom stocks this year may not be as good as expected, and reiterated the "sell" rating of the three telecom companies.
Chunghwa Electronics and Far EasTone's profits last year were lower than their financial forecast targets. Only Taiwan Telecom's net profit per share was 5.01 yuan (NT$, the same below). It was the only one among the three telecom giants to achieve its financial forecast targets. However, in the middle of last year, Deutsche downgraded Sanxiong's rating to "sell" because of the price-cutting competition caused by the 499 chaos in the telecommunications industry, which disrupted the market order.
Deutsche Securities said that Sanxiong's profits were generally poor last year, which may be a sign of continued bad luck this year. China Huadian took the lead in holding the FA meeting on Wednesday, and the results may disappoint investors. Deutsche also lowered its profit forecast for each of the three companies by 4%, and expected that disappointing selling pressure after the FA meeting will drag down the stock price.
Deutschland analyzed that the biggest impact of the 499 chaos was that investors began to pursue low-cost plans, causing manufacturers' business revenue to decline month after month. Although the NCC requested an end to competition, online promotions did not stop, and various promotions continued to appear, affecting As a result, Sanxiong’s net profit after tax in the second half of last year dropped by 11% compared with the same period last year.
In addition to Deutsche, Morgan Stanley maintained its "underweight" rating on Chunghwa Electronics, while Taiwan Telecom and Far EasTone were both "neutral"; Credit Suisse downgraded Chunghwa Electronics to "underweight", and Far EasTone and Taiwan Unicom were rated "neutral". They all dropped to "neutral". (Proofreading/Tuantuan)
