China Telecom Corp Ltd Class H (HK:0728)
:0728
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China Telecom
(0728)
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Rating:70Outperform
Price Target:
HK$5.50
â–²(12.24% Upside)
Action:UpgradedDate:04/25/26
The score is driven primarily by stable financials (low leverage and strong cash generation) and supportive shareholder returns (high dividend yield with a moderate P/E). These positives are tempered by flat-to-declining revenue and only modest margins, alongside a technical picture that is neutral near-term but still below longer-term trend levels.
Positive Factors
Strong free cash flow generation
Sustained, sizable free cash flow gives the company durable financial flexibility: it funds network capex, supports high dividend payouts and strategic investments in enterprise/cloud services, and reduces reliance on external financing, strengthening long-term stability.
Negative Factors
Low-to-flat revenue growth
Stagnant top-line growth constrains the company's ability to expand margins and reinvest organically. In a market where digital services drive higher ARPU, persistent flat revenue suggests challenges in monetization or competitive pressure that can limit medium-term earnings improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, sizable free cash flow gives the company durable financial flexibility: it funds network capex, supports high dividend payouts and strategic investments in enterprise/cloud services, and reduces reliance on external financing, strengthening long-term stability.
Read all positive factors
China Telecom (0728) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$595.44B
Dividend Yield5.4%
Average Volume (3M)81.77M
Price to Earnings (P/E)13.3
Beta (1Y)0.35
Revenue Growth1.29%
EPS Growth-3.41%
CountryHK
Employees277,674
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding13,877,410,000
10 Day Avg. Volume86,724,038
30 Day Avg. Volume81,766,991
Financial Highlights & Ratios
PEG Ratio-4.93
Price to Book (P/B)0.96
Price to Sales (P/S)0.87
P/FCF Ratio8.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.87Price Target Upside19.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.36
Revenue Forecast (FY)HK$536.48B
China Telecom Business Overview & Revenue Model
Company Description
China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People's Republic of China. It offers wireline voice services, including local wireline telephone services...
How the Company Makes Money
China Telecom primarily makes money by selling telecommunications connectivity and related services on a recurring subscription and usage basis across three main lines of business: (1) Mobile services: revenue is generated from mobile voice, messa...
China Telecom Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 516.68B | 509.62B | 529.42B | 507.84B | 481.45B | 439.55B |
| Gross Profit | 119.81B | 142.79B | 150.07B | 146.41B | 249.09B | 230.16B |
| EBITDA | 75.81B | 140.44B | 127.81B | 141.45B | 113.59B | 102.45B |
| Net Income | 31.57B | 32.33B | 33.01B | 30.45B | 27.59B | 25.95B |
Balance Sheet | ||||||
| Total Assets | 876.14B | 871.02B | 866.63B | 835.81B | 807.70B | 762.23B |
| Cash, Cash Equivalents and Short-Term Investments | 110.24B | 111.61B | 102.01B | 91.85B | 76.30B | 75.21B |
| Total Debt | 58.47B | 61.24B | 60.74B | 65.19B | 77.38B | 58.90B |
| Total Liabilities | 401.86B | 395.34B | 410.07B | 388.65B | 371.27B | 331.07B |
| Stockholders Equity | 466.76B | 461.02B | 452.39B | 442.93B | 432.09B | 428.67B |
Cash Flow | ||||||
| Free Cash Flow | 64.89B | 52.43B | 55.00B | 47.34B | 44.92B | 52.36B |
| Operating Cash Flow | 138.98B | 123.68B | 145.27B | 137.51B | 136.43B | 137.53B |
| Investing Cash Flow | -98.62B | -96.86B | -101.29B | -95.49B | -96.80B | -80.29B |
| Financing Cash Flow | -47.96B | -47.00B | -42.90B | -33.48B | -40.91B | -7.52B |
China Telecom Technical Analysis
Negative
4.90
Price Trends
4.98
Negative
5.27
Negative
5.46
Negative
Market Momentum
-0.03
Negative
44.00
Neutral
34.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0728, the sentiment is Negative. The current price of 4.9 is below the 20-day moving average (MA) of 4.94, below the 50-day MA of 4.98, and below the 200-day MA of 5.46, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0728.
China Telecom Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$1.82T | 12.87 | 9.74% | 6.00% | 3.01% | -2.03% | |
73 Outperform | HK$222.14B | 10.54 | 6.09% | 5.29% | 0.68% | 0.64% | |
70 Outperform | HK$595.44B | 13.34 | 7.19% | 5.40% | 1.29% | -3.41% | |
67 Neutral | HK$96.68B | 16.50 | 14.46% | 2.86% | 5.18% | 4.25% | |
62 Neutral | HK$12.11B | 18.62 | 8.82% | 5.45% | 8.01% | 58.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
46 Neutral | HK$47.07B | 34.49 | -2.39% | 1.68% | 7.18% | 15.72% |
* Communication Services Sector Average
HK:0728
China Telecom
5.01
-0.15
-2.85%
HK:0941
China Mobile
83.90
7.02
9.13%
HK:0762
China Unicom (Hong Kong)
7.26
-1.10
-13.12%
HK:1310
HKBN
8.19
3.41
71.41%
HK:6823
HKT and HKT
12.75
2.47
24.00%
HK:0008
PCCW Limited
6.08
1.37
29.09%
China Telecom Corporate Events
China Telecom’s Q1 2026 Profit Falls Despite Stable Revenue and Strong Balance Sheet
Apr 23, 2026
China Telecom reported unaudited first-quarter 2026 operating revenue of RMB132.0 billion, including RMB122.7 billion in service revenue, underscoring the continued dominance of its core communications and digital services businesses. The company&...
China Telecom Posts Solid 5G User Growth in Q1 2026
Apr 23, 2026
China Telecom reported that its mobile subscriber base reached 440.55 million in the first quarter of 2026, adding 1.90 million users during the period, while 5G network subscribers climbed to 314.13 million with a quarterly net increase of 12.32 ...
China Telecom Proposes New Three-Year Board Term and Adds Two Independent Directors
Apr 23, 2026
China Telecom has proposed the re-election of its current executive, non-executive and independent non-executive directors for a new three-year board term running from shareholder approval at the 2025 annual general meeting through to the 2028 fin...
China Telecom Sets April Board Meeting to Approve First-Quarter 2026 Results
Apr 13, 2026
China Telecom has scheduled a board meeting for 23 April 2026 in Beijing to review and approve the financial results of the company and its subsidiaries for the first quarter ended 31 March 2026. The session, led by Chairman and Chief Executive Of...
China Telecom Posts Steady Q4 2025 Growth in 5G and Broadband Users
Mar 24, 2026
China Telecom reported that its mobile subscriber base reached 438.65 million in the fourth quarter of 2025, with a net addition of 1.46 million users, including 301.81 million 5G network subscribers after gaining 9.40 million 5G users in the peri...
China Telecom Proposes Final 2025 Dividend of RMB 0.0908 per Share
Mar 24, 2026
China Telecom has proposed a final ordinary dividend of RMB 0.0908 per share for the financial year ended 31 December 2025, with shareholder approval scheduled for 19 May 2026 and payment set for 8 July 2026. Details including the Hong Kong dollar...
China Telecom Posts Steady 2025 Results as Cloud and AI Strategy Deepens
Mar 24, 2026
China Telecom reported operating revenue of RMB529.6 billion for 2025, with service revenue rising 0.7% to RMB485.4 billion, EBITDA up 2.1% to RMB143.9 billion and net profit inching up 0.5% to RMB33.2 billion, while maintaining disciplined capita...
China Telecom Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 12, 2026
China Telecom has scheduled a board meeting for 24 March 2026 in Beijing to review and approve the annual results for the year ended 31 December 2025. The board will also consider the payment of a final dividend for 2025, a decision that will be c...
China Telecom Warns of Profit Impact as Key Telecom Services Face Higher VAT Rate
Feb 1, 2026
China Telecom has announced that, following a new directive from China’s Ministry of Finance and State Taxation Administration, from 1 January 2026 handset data traffic, SMS/MMS and Internet broadband access services delivered via wireline, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.