Elevator Pitch
Hong Kong-listed telecommunications services operator SmarTone Telecommunications Holdings Limited (OTCPK:STTFY) (OTC:STTFF) [315:HK] is currently trading at 4.5 times consensus forward FY2020 (YE June) EV/EBITDA, which represents a discount to peer and mobile market leader HKT Trust and HKT Limited (OTCPK:OTCPK:HKTTY) (OTCPK:OTCPK:HKTTF) [6823:HK] which is valued by the market at consensus forward FY2019 EV/EBITDA multiple of 10.3 times. The stock offers a trailing 5.7% dividend yield based on a 75% dividend payout ratio.
SmarTone's cheapness is due to the fact that it is a mobile pure-play