According to reports, Morgan Stanley has stated that the U.S. Federal Communications Commission (FCC) plans to revoke the U.S. operating qualifications of HKT International, a wholly-owned subsidiary of HKT-SS (06823), due to its ties with China Unicom Americas. Morgan Stanley believes that if the revocation process takes effect, its impact on HKT's fundamentals should be manageable, as international business revenue (excluding Greater China) is expected to account for less than 7% of total revenue in 2024, with the U.S. market contributing only about 1%. Furthermore, the profit margin from the international business is generally lower than that of local operations. However, given the uncertainties surrounding the situation, market negativity may continue to escalate. The firm has set a target price of HKD 13 for HKT and maintains an "Overweight" rating.