<p>Recently, the market has seen a surge in stocks related to ownership changes, such as Ma Ji Kwai Chung (1716), Yao Cai Securities (1428), and Dong Yao Pharmaceutical (1875). Many investors are hopeful that these stocks may change names or even receive capital injections, leading to price increases. On the other hand, Hong Kong Broadband (1310) was already acquired by China Mobile last September and will announce its interim results next Friday (24th), marking its first report since the ownership change, raising market attention on whether it will act as a catalyst for upward price movement. Additionally, the stock currently has a dividend yield of over 4 cents, raising the question of whether it can be a balanced choice for &#34;dividend stocks.&#34; Mo Haonan, a senior analyst at Fangde Securities, stated in an interview with Sing Tao Daily that investors should not be tempted to buy a stock solely for its particularly high dividend.</p>
<p>In fact, several companies have seen their stock prices soar significantly after announcing ownership changes, with expectations of future growth potential. For example, after Ma Ji Kwai Chung (1716) confirmed its sale last month, its stock price surged over 37% upon resumption of trading and once skyrocketed nearly 140% in a single day, currently more than doubling since before the ownership change. Yao Cai Securities also saw its stock price jump over 46% in a single day after resuming trading last month, and it has since risen over 30%.</p>
<p>As for China Mobile's completion of a full tender offer for Hong Kong Broadband on September 17 last year, it accumulated approximately 78.08% of the shares and gained control. The next day, Hong Kong Broadband's stock price surged nearly 70% to HKD 8.63, but later fluctuated back down to around HKD 6, only recently climbing back up. As of Tuesday (14th), it reported HKD 8.23, still below last year's high, but has risen about 33% year-to-date.</p>
<h2>Amortization of Goodwill May Affect Profit Fluctuations</h2>
<p>Regarding the upcoming interim results, Mo Haonan pointed out that Hong Kong Broadband's gross profit margin has remained stable over the years, with very few instances of significant &#34;customer loss.&#34; However, he cautioned that if there are large fluctuations in the final profit figures, the main reason for the profit changes may stem from the amortization of goodwill from certain previous acquisitions, which records the premium paid for acquired companies as intangible asset value in the goodwill section of the balance sheet.</p>
<p>As for market expectations of whether the management will announce &#34;big plans&#34; taking advantage of the performance opportunity after China Mobile's takeover, Mo Haonan anticipates that the chances are slim, as China Mobile already has multiple businesses in Hong Kong. Therefore, Hong Kong Broadband may only be viewed as an independent business within the group and will operate independently.</p>
<h2>Stock Price Volatility Makes It Unsuitable as a &#34;Dividend Stock&#34;</h2>
<p>Additionally, Hong Kong Broadband currently has a dividend yield of about 4.16 cents, and some retail investors may be interested in buying it for dividend income. However, Mo Haonan has reservations about this, believing that if the sole purpose is to collect dividends, there are definitely better options in the market in terms of business stability or dividend yield.</p>
<p>He further pointed out that the biggest risk of investing in Hong Kong Broadband is its stock price volatility, explaining that looking back at its past trends, the volatility is not small. Therefore, compared to other traditional dividend stocks or telecom stocks in Hong Kong, such as Hong Kong Telecom (6823) and China Mobile (941), Hong Kong Broadband is not considered a particularly stable choice.</p>
<h2>Diversifying Investments with High-Yield ETFs</h2>
<p>Mo Haonan also shared his philosophy on dividend investing, stating that the core requirement for investing in dividend stocks is to ensure that the company has a &#34;stable cash flow,&#34; rather than being tempted by a particularly high dividend from a specific stock
In the face of the current volatile market, he advises investors to adopt a diversified investment strategy. Instead of risking &#34;earning interest while losing value&#34; by investing in a single stock, it may be better to consider buying high-yield ETFs, such as the Global X Hang Seng High Dividend Yield ETF (3145).</p>
<p>Further reading: Star new stocks face a brutal three-way choice; the first &#34;Hangzhou Six Little Dragons&#34; is expected to soar, while entering the market is only a second choice?</p>
<p>Further reading: Global storage stocks experienced a huge shock in March; major firms claim the market misreads Google's algorithm, with two stocks as top picks for bottom fishing.</p>
<p>Further reading: Star gold semi-new stocks welcome the unlocking of 170 million shares; a drop of over 30% from high levels may not be enough to stabilize, experts teach strategies for bottom fishing in gold prices</p>

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<p>HKBN (1310) will announce its interim results next Friday, marking its first report since the change of ownership, and the market is paying attention to its stock price performance. The stock currently has a dividend yield of over 4%, and analysts remind investors not to blindly buy due to the high yield. China Mobile completed its acquisition of HKBN last year, holding approximately 78.08%. Although the stock price had once declined, it has risen about 33% so far this year. Analysts point out that if earnings are volatile, it may be related to goodwill amortization</p>

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Don't forget about HKBN when searching for treasure in the stock market. After China Mobile took over, it released its first earnings report with a 4-cent dividend. Experts advise caution due to "high stock price volatility." | Star Market Strategy