Elevator Pitch
I maintain my "Neutral" rating on Hong Kong-listed telecommunications services operator SmarTone Telecommunications Holdings Limited (OTCPK:STTFY) (OTC:STTFF) [315:HK]. The current coronavirus outbreak is expected to have a negative impact on SmarTone's roaming revenue this year, and roaming services typically have the highest profitability of the different telecommunications services. On the positive side of things, there are expectations of higher mobile ARPUs for SmarTone, after the company launches its 5G mobile services in mid-2020.
A "Neutral" rating is warranted, as the near-term earnings outlook for SmarTone is uncertain with the