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China Telecom
(0728)
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Rating:70Outperform
Price Target:
HK$5.00
â–²(2.04% Upside)
Action:Upgraded
Date: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
Conservative balance sheet
Low leverage (debt-to-equity ~0.13) and rising shareholders' equity provide durable financial flexibility. This conservative capital structure reduces refinancing and solvency risk, supports steady shareholder distributions, and preserves capacity to fund network investment or M&A over the medium term.
Negative Factors
Muted revenue growth
TTM revenue of about -1.0% signals stagnating top-line momentum versus earlier stronger growth. Persistent flat or declining revenue constrains earnings expansion, reflects market saturation or competition in core consumer services, and limits room for durable organic growth without new product or market expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage (debt-to-equity ~0.13) and rising shareholders' equity provide durable financial flexibility. This conservative capital structure reduces refinancing and solvency risk, supports steady shareholder distributions, and preserves capacity to fund network investment or M&A over the medium term.
Read all positive factors
China Telecom (0728) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$604.01B
Dividend Yield6.42%
Average Volume (3M)81.77M
Price to Earnings (P/E)18.3
Beta (1Y)0.47
Revenue GrowthN/A
EPS GrowthN/A
CountryHK
Employees277,911
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.34
Shares Outstanding13,877,410,000
10 Day Avg. Volume86,724,038
30 Day Avg. Volume81,766,991
Financial Highlights & Ratios
PEG Ratio-4.98
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$5.49Price Target Upside12.04% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.35
Revenue Forecast (FY)HK$531.96B
China Telecom Business Overview & Revenue Model
Company Description
China Telecom Corporation Limited, along with its various subsidiaries, primarily provides an extensive range of fixed-line and mobile telecommunication services throughout the People's Republic of China. Its offerings include traditional wireline...
How the Company Makes Money
China Telecom makes money mainly by charging for telecommunications connectivity and related digital services across consumer, enterprise, and government customers. Key revenue streams include: (1) Mobile services: recurring service revenue from m...
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
Neutral
4.90
Price Trends
4.88
Negative
4.89
Negative
5.14
Negative
Market Momentum
-0.06
Negative
50.72
Neutral
84.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0728, the sentiment is Neutral. The current price of 4.9 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.88, and below the 200-day MA of 5.14, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 84.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$1.74T | 11.14 | 9.52% | 6.00% | 3.01% | -2.03% | |
70 Outperform | HK$604.01B | 18.27 | 6.83% | 5.40% | ― | ― | |
67 Neutral | HK$195.22B | 8.88 | 6.09% | 5.29% | 0.68% | 0.64% | |
67 Neutral | HK$93.11B | 17.83 | 14.46% | 2.86% | 5.18% | 4.25% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | HK$8.61B | 41.75 | 9.40% | 5.45% | 8.01% | 58.51% | |
46 Neutral | HK$44.21B | -175.23 | -2.39% | 1.68% | 7.18% | 15.72% |
* Communication Services Sector Average
HK:0728
China Telecom
4.72
-0.73
-13.31%
HK:0941
China Mobile
80.80
-0.88
-1.07%
HK:0762
China Unicom (Hong Kong)
6.54
-2.29
-25.92%
HK:1310
HKBN
5.87
1.13
23.81%
HK:6823
HKT and HKT
12.30
0.54
4.57%
HK:0008
PCCW Limited
5.73
0.34
6.37%
China Telecom Corporate Events
China Telecom Appoints Guan Lixin as Employee Director for Ninth Board
Jun 2, 2026
China Telecom has named senior economist Guan Lixin as Employee Director for the ninth session of its board, following a unanimous election by employee representatives in line with Chinese corporate governance rules. Her term will run from June 2,...
China Telecom Clarifies Board and Committee Line-Up to Highlight Governance Focus
Jun 2, 2026
China Telecom has announced the current composition of its board of directors, led by Chairman and Chief Executive Officer Ke Ruiwen, President and Chief Operating Officer Liu Guiqing, and other executive, non-executive, independent non-executive,...
China Telecom Shareholders Approve 2025 Results and Final Dividend at AGM
May 19, 2026
China Telecom reported that all resolutions at its 2025 annual general meeting, held in Hong Kong on 19 May 2026, were approved by shareholders through a combination of on-site and online voting. Attendance was high, with more than 78% of voting s...
China Telecom Reshapes Board and Committee Leadership to Bolster Governance
May 19, 2026
China Telecom has updated the composition of its Board of Directors, naming Ke Ruiwen as chairman and chief executive officer, Liu Guiqing as president and chief operating officer, and appointing Tang Ke and Li Yinghui as executive vice presidents...
China Telecom Sets 2025 Final Dividend and Clarifies Tax for H-Shareholders
May 19, 2026
China Telecom has declared a final ordinary dividend of RMB 0.0908 per share for the financial year ended 31 December 2025, with shareholders approving the payout on 19 May 2026. The dividend will be paid in Hong Kong dollars at HKD 0.10391 per sh...
China Telecom Sets 2025 AGM to Approve Dividend Plan, Buyback Mandate and Board Line-up
Apr 27, 2026
China Telecom has called its 2025 annual general meeting for 19 May 2026 in Hong Kong, where shareholders will vote on the audited 2025 financial reports, the board’s annual report, and the 2025 profit distribution and dividend plan. The age...
China Telecom Updates Details of 2025 Final Dividend and Tax Treatment for H Shareholders
Apr 27, 2026
China Telecom said its board has proposed a final ordinary dividend of RMB 0.0908 per share for the financial year ended 31 December 2025, subject to shareholder approval on 19 May 2026. The dividend for H-share investors will be paid in Hong Kong...
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...
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.