Dahua: Digital Telecom (00315.HK) is at a disadvantage in competition and terminates research due to resource reallocation.

According to the information obtained from the Wise Finance APP, Morgan Stanley released a research report stating that due to resource reallocation, they have immediately terminated their research on SmarTone Telecommunications Holdings Limited (00315.HK). All previous research on SmarTone should no longer be relied upon. Based on discounted cash flow (DCF) valuation, a final target price of 4.5 Hong Kong dollars is given. Morgan Stanley believes that the mobile communication market in Hong Kong is still challenging, with the presence of four major operators and a few Mobile Virtual Network Operators (MVNO). As a provider that only offers mobile communication services, SmarTone Telecommunications is at a disadvantage in competition with larger players that can bundle mobile and fixed-line services. However, the high dividend yield of 7-8% should provide some downside support, so a "Market Perform" rating is given.