Investors are bullish about HKT Trust and HKT Limited despite its inferior earnings outlook, indicated by its high P/E ratio. This could lead to future disappointment if the P/E falls to levels more in line with the growth outlook. The high P/E and predicted future earnings pose a significant risk to shareholders and potential investors.

Investors are adjusting expectations as the company's stock gained only 10% over five years due to stable returns and lack of re-investment. Two warning signs have been identified in the investment analysis.

HKT's use of high-level debt to finance its growth raises concerns despite its solid ROE. High quality businesses should achieve high ROE without much debt, bearing in mind future profit growth and required investment.