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China Telecom Corp Ltd 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)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
HK$6.50
▲(22.41% Upside)
China Telecom's strong financial performance is the most significant factor, supported by solid revenue growth and financial stability. The valuation is fair with an attractive dividend yield. However, technical indicators suggest weak momentum, which slightly offsets the overall score.
Positive Factors
Negative Factors

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

China Telecom Business Overview & Revenue Model

Company DescriptionChina 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 and long-distance wireline services; CDMA mobile voice services, such as local calls, domestic and international long-distance calls, intra-provincial roaming, and inter-provincial and international roaming; wireline Internet access services comprising dial-up and broadband services; and wireline, Internet, and mobile value-added services. The company also provides integrated information application services consisting of Best Tone information services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge, and software development services. In addition, it offers managed data services that include digital data network, frame relay, and asynchronous transfer mode services for government agencies, large corporations, and institutions; and leased line services, as well as sells, repairs, and maintains customer-end equipment. Further, the company provides international telecommunications services; cloud products and services; and e-commerce, music production and related information, instant messenger, and capital and financial management services, as well as sells telecommunications terminals and equipment. As of December 31, 2021, it had approximately 372 million mobile subscribers; 170 million wireline broadband subscribers; and 107 million access lines in service. The company was incorporated in 2002 and is based in Wan Chai, Hong Kong. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.
How the Company Makes MoneyChina Telecom generates revenue primarily through its telecommunications services. Key revenue streams include mobile services, such as voice and data plans, broadband internet access, and fixed-line telephone services. Mobile services constitute a significant portion of their revenue, driven by a large subscriber base. Additionally, the company earns money from value-added services, such as cloud computing, data center services, and Internet of Things (IoT) solutions. Partnerships with other technology companies and government contracts further contribute to its earnings. The company's strategic investments in 5G technology and infrastructure also play a crucial role in its revenue generation, enabling it to offer improved services and capture new market opportunities in the evolving digital landscape.

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 is healthy with low leverage and high equity ratios, reflecting 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue531.73B529.42B507.84B481.45B439.55B393.56B
Gross Profit179.29B150.07B146.41B249.09B230.16B208.06B
EBITDA120.46B127.81B141.45B118.11B102.45B104.12B
Net Income32.33B33.01B30.45B27.59B25.95B20.86B
Balance Sheet
Total Assets887.22B866.63B835.81B807.70B762.23B715.10B
Cash, Cash Equivalents and Short-Term Investments110.57B102.01B91.85B76.30B75.21B33.09B
Total Debt69.18B60.74B65.19B77.38B58.90B93.99B
Total Liabilities413.21B410.07B388.65B371.27B331.07B348.92B
Stockholders Equity466.87B452.39B442.93B432.09B428.67B363.46B
Cash Flow
Free Cash Flow49.57B55.00B47.34B44.92B52.36B43.29B
Operating Cash Flow138.06B145.27B137.51B136.43B137.53B132.26B
Investing Cash Flow-113.20B-101.29B-95.49B-96.80B-80.29B-87.08B
Financing Cash Flow-34.51B-42.90B-33.48B-40.91B-7.52B-42.11B

China Telecom Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.31
Price Trends
50DMA
5.75
Negative
100DMA
5.63
Negative
200DMA
5.41
Negative
Market Momentum
MACD
-0.13
Positive
RSI
28.81
Positive
STOCH
23.42
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 5.31 is below the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.75, and below the 200-day MA of 5.41, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 28.81 is Positive, neither overbought nor oversold. The STOCH value of 23.42 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€638.78B13.237.57%5.65%2.04%6.27%
74
Outperform
$31.17B8.138.00%5.30%1.54%-2.09%
72
Outperform
$190.13B16.835.62%4.14%3.24%8.66%
71
Outperform
$8.99B9.908.67%7.74%-0.62%-5.10%
66
Neutral
$88.38B17.3514.75%2.90%2.33%2.41%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
54
Neutral
HK$41.85B-14.69%1.81%4.26%36.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0728
China Telecom
5.31
0.97
22.41%
HK:0788
China Tower
11.58
1.22
11.81%
HK:1883
CITIC Telecom International Holdings
2.43
0.29
13.39%
HK:0552
China Communications Services
4.50
0.52
13.09%
HK:6823
HKT and HKT
11.66
2.40
25.88%
HK:0008
PCCW Limited
5.41
1.38
34.24%

China Telecom Corporate Events

China Telecom Announces Board of Directors and Governance Structure
Aug 14, 2025

China Telecom has announced the composition of its board of directors, highlighting key executive and non-executive roles. This announcement is significant as it outlines the leadership structure that will guide the company’s strategic direction and operational management. The board includes a mix of executive, non-executive, and independent directors, which is expected to provide a balanced approach to governance and decision-making. The establishment of three board committees—Audit, Remuneration, and Nomination—further emphasizes the company’s commitment to robust corporate governance practices.

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 Enhances Governance with New Audit Committee
Aug 14, 2025

China Telecom Corporation Limited has established an audit committee to ensure the protection of shareholder interests, particularly those of minority shareholders. The committee, composed of independent non-executive directors with financial expertise, is tasked with maintaining transparency and compliance with regulatory standards. This move is expected to strengthen corporate governance and enhance stakeholder confidence in the company’s operations.

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 Forms Nomination Committee to Enhance Governance
Aug 14, 2025

China Telecom has announced the establishment of a Nomination Committee to oversee the nomination process for its board of directors. The committee, composed of independent non-executive directors, aims to ensure fair representation and protect the interests of all shareholders, particularly minority shareholders. This move is expected to enhance corporate governance and align with regulatory requirements, potentially strengthening the company’s position 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 Enhances Governance with New Remuneration Committee
Aug 14, 2025

China Telecom has established a Remuneration Committee to ensure fair and responsible compensation practices aligned with regulatory requirements. The committee, composed of independent non-executive directors, aims to protect shareholder interests and maintain compliance with applicable laws. This move is expected to enhance corporate governance and strengthen the company’s commitment to transparency and accountability in its operations.

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 Interim Dividend for 2025
Aug 14, 2025

China Telecom Corporation Limited announced an interim cash dividend of RMB 0.1812 per share for the six months ending June 30, 2025. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.099691, with a payment date set for September 30, 2025. The announcement includes details about withholding tax rates applicable to non-resident shareholders, which vary depending on their country of domicile and tax treaties with China. This dividend announcement reflects China Telecom’s ongoing commitment to returning value to its shareholders and may impact investor sentiment and the company’s stock performance.

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 Key Committee Appointments
Aug 14, 2025

China Telecom Corporation Limited has announced the appointment of Mr. Chen Dongqi as a member of the remuneration committee and Madam Lyu Wei as a member of the nomination committee, effective from August 14, 2025. This strategic move is expected to enhance the governance structure of the company, potentially impacting its operational efficiency and stakeholder confidence positively.

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’s Revenue and Profit Rise Amid Strategic Shift to AI and Digitalization
Aug 14, 2025

China Telecom reported a 1.3% increase in operating revenues for the first half of 2025, reaching RMB271.5 billion, with service revenues growing by 1.2%. The company’s net profit rose by 5.5% to RMB23.0 billion, and EBITDA increased by 4.9%. The company is capitalizing on the rapid adoption of artificial intelligence and strategic emerging industries, enhancing its strategy to include ‘Cloudification, Digital Transformation and AI for Good.’ This strategic shift is expected to drive high-quality development and create greater value for shareholders, as evidenced by an 8.4% increase in interim dividend distribution.

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 Reports Strong Subscriber Growth in Q2 2025
Aug 14, 2025

China Telecom reported its key operating statistics for the second quarter of 2025, highlighting a net increase of 3.24 million mobile subscribers, reaching a total of 432.71 million. The company also saw significant growth in its 5G network subscribers, with an increase of 15.81 million, totaling 282.02 million. Additionally, wireline broadband subscribers grew by 0.49 million to 198.60 million. These figures indicate a strong market position and continued expansion in the telecommunications sector, although investors are advised to exercise caution when dealing with the company’s securities.

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.

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: Sep 17, 2025