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China Telecom Corp Class H (HK:0728)
:0728
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China Telecom (0728) AI Stock Analysis

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HK:0728

China Telecom

(Frankfurt:0728)

Rating:75Outperform
Price Target:
HK$6.50
â–˛(13.24%Upside)
China Telecom's solid financial performance is the strongest factor, indicating strong operational efficiency and financial stability. Technical analysis shows mixed signals, with the stock facing slight resistance. The valuation is reasonable, offering a decent dividend yield. The absence of recent earnings call data and notable corporate events means these factors do not impact the score.
Positive Factors
Revenue Growth
The industrial digitalisation business is the key growth driver, with cloud and IDC revenue showing significant year-over-year growth.
Shareholder Returns
Dividend hike to improve shareholder return, with a commitment to a 75% payout ratio by FY26.
Negative Factors
Market Competition
Irrational competition in the mobile market could lead to a price war, affecting revenue.
Policy Risks
China's telecom sector is exposed to policy risks, which could be unfavorable to business performance.

China Telecom (0728) vs. iShares MSCI Hong Kong ETF (EWH)

China Telecom Business Overview & Revenue Model

Company DescriptionChina Telecom (0728) is one of the leading telecommunications service providers in China, offering a comprehensive range of information and communication technology (ICT) solutions. The company operates in sectors such as mobile communication services, wireline voice services, internet and data services, and value-added telecommunications services. It provides a wide array of products including mobile voice, broadband internet access, and enterprise information solutions, serving both individual and corporate clients.
How the Company Makes MoneyChina Telecom makes money primarily through its extensive portfolio of telecommunication services. The company generates revenue from mobile services which include voice calls, SMS, and mobile data plans. Another significant revenue stream is from broadband and internet services, where it offers high-speed internet access to households and businesses. Additionally, China Telecom earns income from its wireline voice services, providing traditional telephone services to residential and commercial customers. Value-added services, such as cloud computing, data center services, and ICT solutions for enterprises, also contribute to its earnings. Partnerships with technology companies and continuous investment in network infrastructure enhance its service offerings and expand its market reach, further driving revenue growth.

China Telecom Financial Statement Overview

Summary
China Telecom has demonstrated strong financial performance with consistent revenue growth, robust profit margins, and efficient cash flow management. The balance sheet reflects low leverage and a strong equity base, contributing to financial stability.
Income Statement
88
Very Positive
China Telecom has demonstrated consistent revenue growth, with a 3.10% increase in Total Revenue from 2023 to 2024. Gross Profit Margin stands robust at approximately 28.7% for 2024. The Net Profit Margin improved to 6.30% in 2024 from 6.00% in 2023. EBIT and EBITDA margins are solid at 8.13% and 24.41%, respectively, reflecting strong operational efficiency.
Balance Sheet
82
Very Positive
The company's Debt-to-Equity Ratio is healthy at 0.13, indicating moderate leverage. Return on Equity (ROE) improved to 7.30% in 2024, showcasing enhanced equity profitability. The Equity Ratio remains strong at 52.20%, indicating a solid equity base relative to Total Assets.
Cash Flow
85
Very Positive
Free Cash Flow grew by 16.19% from 2023 to 2024, highlighting increased cash efficiency. The Operating Cash Flow to Net Income Ratio is robust at 4.40, demonstrating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio stands at 1.67, indicating efficient conversion of income into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue523.57B507.84B474.97B439.55B393.56B
Gross Profit150.07B146.41B135.09B230.16B208.06B
EBITDA127.81B141.45B134.53B129.24B121.06B
Net Income33.01B30.45B27.59B25.95B20.86B
Balance Sheet
Total Assets866.63B835.81B807.70B762.23B715.10B
Cash, Cash Equivalents and Short-Term Investments102.01B91.85B76.30B75.21B33.09B
Total Debt60.74B65.19B77.38B58.90B93.99B
Total Liabilities410.07B388.65B371.27B331.07B348.92B
Stockholders Equity452.39B442.93B432.09B428.67B363.46B
Cash Flow
Free Cash Flow55.00B47.34B44.92B52.36B43.29B
Operating Cash Flow145.27B137.51B136.43B137.53B132.26B
Investing Cash Flow-101.29B-95.49B-96.80B-80.29B-87.08B
Financing Cash Flow-42.90B-33.48B-40.91B-7.52B-42.11B

China Telecom Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.74
Price Trends
50DMA
5.68
Positive
100DMA
5.69
Positive
200DMA
5.21
Positive
Market Momentum
MACD
0.02
Negative
RSI
60.53
Neutral
STOCH
75.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0728, the sentiment is Positive. The current price of 5.74 is above the 20-day moving average (MA) of 5.62, above the 50-day MA of 5.68, and above the 200-day MA of 5.21, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0728.

China Telecom Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$31.58B8.088.19%1.22%-0.99%-1.64%
75
Outperform
HK$721.60B14.637.35%0.85%0.61%5.43%
73
Outperform
$93.99B18.5313.76%6.41%1.23%1.58%
73
Outperform
$9.40B10.378.46%9.43%-4.15%-26.13%
69
Neutral
$193.25B17.825.39%0.37%2.02%7.93%
62
Neutral
HK$43.94B―-14.69%6.73%3.33%36.39%
55
Neutral
HK$69.25B-2.01-3.62%5.51%-4.24%-17.51%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0728
China Telecom
5.72
1.31
29.59%
HK:0008
PCCW Limited
5.68
2.06
56.91%
HK:0788
China Tower
11.78
2.47
26.54%
HK:0552
China Communications Services
4.57
0.67
17.09%
HK:1883
CITIC Telecom International Holdings
2.54
0.63
33.19%
HK:6823
HKT and HKT
12.30
3.75
43.88%

China Telecom Corporate Events

China Telecom Approves Dividend and Strategic Resolutions at AGM
May 21, 2025

China Telecom announced the successful passage of all proposed resolutions at its Annual General Meeting and Shareholders’ Class Meetings, including the approval of a profit distribution and dividend plan for 2024. A final dividend of RMB0.0927 per share is set to be distributed on July 18, 2025. The meetings were attended by a significant number of shareholders, reflecting strong participation and support for the company’s strategic decisions. This announcement underscores China Telecom’s commitment to shareholder value and its stable financial position, which may positively influence its market standing and stakeholder confidence.

The most recent analyst rating on (HK:0728) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on China Telecom stock, see the HK:0728 Stock Forecast page.

China Telecom Announces Board Composition and Leadership Roles
May 21, 2025

China Telecom has announced the composition of its board of directors and the roles within its board committees. This announcement is significant as it outlines the leadership structure that will guide the company’s strategic direction and operational decisions, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0728) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on China Telecom stock, see the HK:0728 Stock Forecast page.

China Telecom Updates Final Dividend Details for 2024
May 21, 2025

China Telecom has announced an update regarding its final cash dividend for the year ending December 31, 2024. The dividend, declared at RMB 0.0927 per share, will be paid in Hong Kong dollars at a rate of HKD 0.100637 per share, with an exchange rate of RMB 1 to HKD 1.085618. The payment is scheduled for July 18, 2025, following shareholder approval on May 21, 2025. The announcement also outlines the withholding tax rates applicable to non-resident shareholders, which vary depending on the tax treaties between the shareholders’ countries of domicile and China. This update reflects China Telecom’s commitment to providing returns to its shareholders while navigating the complexities of international tax regulations.

The most recent analyst rating on (HK:0728) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on China Telecom stock, see the HK:0728 Stock Forecast page.

China Telecom Appoints New Executive Vice President
May 16, 2025

China Telecom Corporation Limited has appointed Mr. Huang Zhiyong as an Executive Vice President, effective from May 16, 2025. Mr. Huang, who has extensive experience in the telecommunications industry and has held various managerial roles within the company, is expected to strengthen the company’s leadership team and contribute to its strategic goals.

The most recent analyst rating on (HK:0728) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on China Telecom stock, see the HK:0728 Stock Forecast page.

China Telecom Announces Board Composition and Roles
May 16, 2025

China Telecom has announced the composition of its board of directors and the roles within its committees. The board includes a mix of executive, non-executive, and independent non-executive directors, with Ke Ruiwen serving as Chairman and CEO. This announcement highlights the company’s governance structure, which is crucial for maintaining transparency and accountability, potentially impacting investor confidence and stakeholder engagement.

The most recent analyst rating on (HK:0728) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on China Telecom stock, see the HK:0728 Stock Forecast page.

China Telecom Appoints New President and COO
May 16, 2025

China Telecom has announced the appointment of Mr. Liu Guiqing as the new President and Chief Operating Officer, effective from May 16, 2025. Mr. Liu, who has extensive experience in the telecommunications industry and has held various leadership roles, is expected to strengthen the company’s operations and strategic positioning in the market.

The most recent analyst rating on (HK:0728) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on China Telecom stock, see the HK:0728 Stock Forecast page.

China Telecom Announces 2024 AGM with Key Resolutions
Apr 28, 2025

China Telecom Corporation Limited has announced its Annual General Meeting (AGM) for 2024, scheduled for May 21, 2025, in Hong Kong. The AGM will address several key resolutions, including the approval of financial reports, profit distribution plans, and the re-appointment of external auditors. Additionally, a special resolution will be considered to grant the board a mandate to repurchase shares, which could impact the company’s market operations and shareholder value.

China Telecom Announces 2025 H Shareholders’ Class Meeting and Share Repurchase Mandate
Apr 28, 2025

China Telecom Corporation Limited has announced its first H Shareholders’ Class Meeting of 2025, scheduled for May 21, 2025, in Hong Kong. The meeting will consider a special resolution to grant the Board a general mandate to repurchase up to 10% of the company’s A and H shares. This move could potentially impact the company’s stock value and market positioning, reflecting a strategic decision to manage its capital structure and shareholder value.

China Telecom Announces Final Dividend and Withholding Tax Details for 2024
Apr 28, 2025

China Telecom Corporation Limited announced a final cash dividend of RMB 0.0927 per share for the financial year ending December 31, 2024. The announcement includes details on the withholding tax applicable to non-resident shareholders, with varying rates depending on the shareholder’s country of domicile and its tax treaty with China. This update provides clarity on the Hong Kong share register and withholding tax, potentially impacting shareholder returns and tax obligations.

China Telecom Reports Stable Q1 2025 Financial Results
Apr 25, 2025

China Telecom Corporation Limited reported its unaudited financial results for the first quarter of 2025, showing stable operating revenues of RMB135.5 billion and a 3.1% increase in profit attributable to equity holders, amounting to RMB8.9 billion. The company’s EBITDA rose by 4.7% year-on-year, reflecting a positive financial performance. These results indicate a solid start to the year, suggesting potential growth and stability in its operations, which may positively impact its market positioning and stakeholder confidence.

China Telecom Reports Strong Subscriber Growth in Q1 2025
Apr 25, 2025

China Telecom reported its key operating statistics for the first quarter of 2025, highlighting a significant increase in its mobile and 5G network subscribers. The company added 4.95 million mobile subscribers, reaching a total of 429.47 million, with 5G subscribers increasing by 15.48 million to 266.21 million. Wireline broadband subscribers also saw a modest increase. These statistics suggest a strong growth trajectory for China Telecom in the competitive telecommunications market, potentially enhancing its market position and stakeholder value.

China Telecom Proposes New Non-Executive Director Appointment
Apr 25, 2025

China Telecom Corporation Limited has announced a proposed change in its board of directors, with Mr. Lyu Yongzhong being recommended to replace Mr. Chen Shengguang as a Non-Executive Director. This change is pending approval at the company’s annual general meeting in 2024. Mr. Lyu, who has held significant leadership roles in various companies, is currently the Chairman of Guangdong Rising Holdings Group Co., Ltd., a major shareholder in China Telecom. The appointment is not expected to involve any remuneration for Mr. Lyu, and a service contract will be established upon shareholder approval. This move reflects the company’s ongoing efforts to strengthen its governance and align with its strategic objectives.

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.Date of analysis: Jul 15, 2025