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China Telecom Corp Ltd Class H (HK:0728)
:0728

China Telecom (0728) AI Stock Analysis

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HK

China Telecom

(Frankfurt:0728)

71Outperform
China Telecom's strong financial foundation is the primary driver of its score, showcasing solid revenue growth and efficient cash flow management. While the technical analysis indicates a potential short-term downside, the reasonable valuation and attractive dividend yield provide a buffer. The absence of new earnings guidance or corporate events leaves these aspects neutral in the assessment.
Positive Factors
Dividend Policy
Strong dividend growth visibility, supported by declining capex and commitment to raise payout ratio.
Market Position
China Telecom is the second largest operator in China, with 352 million 5G mobile subscribers, representing around 30% of the market.
Revenue Growth
Industrial digitalisation business, including IDC and cloud computing, is the key revenue growth driver, accounting for 30.4% of service revenue.
Negative Factors
Market Competition
Irrational competition for market share in the mobile market could lead to higher ARPU pressure.
Policy Risks
China's telecom sector is exposed to policy risks, management reshuffles, and tariff cuts, which could be unfavorable to business performance.

China Telecom (0728) vs. S&P 500 (SPY)

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 shown commendable growth and stability across all financial aspects. Strong revenue growth, efficient profit margins, and prudent cash flow management are evident. 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
523.57B507.84B474.97B439.55B393.56B
Gross Profit
150.07B146.41B135.09B230.16B208.06B
EBIT
42.60B37.13B36.54B34.45B35.42B
EBITDA
127.81B141.45B134.53B129.24B121.06B
Net Income Common Stockholders
33.01B30.45B27.59B25.95B20.86B
Balance SheetCash, Cash Equivalents and Short-Term Investments
102.01B91.85B76.30B75.21B33.09B
Total Assets
866.63B835.81B807.70B762.23B715.10B
Total Debt
60.74B65.19B77.38B58.90B93.99B
Net Debt
-21.46B-15.86B4.92B-14.38B70.31B
Total Liabilities
410.07B388.65B371.27B331.07B348.92B
Stockholders Equity
452.39B442.93B432.09B428.67B363.46B
Cash FlowFree Cash Flow
55.00B47.34B44.92B52.36B43.29B
Operating Cash Flow
145.27B137.51B136.43B137.53B132.26B
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 Price5.63
Price Trends
50DMA
5.79
Negative
100DMA
5.45
Positive
200DMA
4.96
Positive
Market Momentum
MACD
-0.06
Negative
RSI
48.48
Neutral
STOCH
84.66
Negative
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 5.63 is above the 20-day moving average (MA) of 5.61, below the 50-day MA of 5.79, and above the 200-day MA of 4.96, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.81B10.029.25%8.21%-0.35%86.29%
71
Outperform
€739.53B14.347.35%5.01%1.82%5.31%
67
Neutral
$161.46B12.7011.39%3.01%-2.65%-14.96%
65
Neutral
$74.77B25.4411.45%0.32%18.80%142.93%
60
Neutral
$14.02B6.62-2.88%3.71%2.35%-37.08%
56
Neutral
HK$61.38B264.810.42%0.54%-2.06%-83.44%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0728
China Telecom
5.63
1.44
34.24%
HK:1347
Hua Hong Semiconductor Ltd.
29.90
10.80
56.54%
HK:0315
SmarTone Telecommunications Holdings
4.38
0.81
22.69%
HK:2382
Sunny Optical Technology (Group) Co
66.20
22.48
51.40%
HK:0763
ZTE
22.70
5.83
34.57%

China Telecom Corporate Events

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.

China Telecom Schedules Board Meeting to Review Q1 2025 Financial Results
Apr 11, 2025

China Telecom Corporation Limited has announced that its board of directors will convene on April 25, 2025, to approve the financial results for the first quarter ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder confidence.

China Telecom Reports Robust 2024 Financial Performance with Strategic Focus on Digital Transformation
Mar 25, 2025

China Telecom announced its annual results for 2024, reporting a 3.1% increase in operating revenues to RMB529.4 billion and an 8.4% rise in net profit to RMB33.0 billion. The company emphasized growth in strategic emerging businesses and industrial digitalization, with significant increases in revenue from mobile value-added services, smart family services, and cloud services. The Board recommended a cash distribution of 72% of the profit attributable to equity holders, with plans to increase this to above 75% within three years, enhancing shareholder value. The company is committed to advancing its Cloudification and Digital Transformation strategy, focusing on artificial intelligence and digital infrastructure to drive future growth.

China Telecom Appoints New Executive Vice President
Mar 25, 2025

China Telecom Corporation Limited has announced the appointment of Madam Liu Ying as the new Executive Vice President, effective from March 25, 2025. Madam Liu brings extensive experience in telecommunications management, having held various leadership roles within the company. This strategic appointment is expected to strengthen China Telecom’s executive team and enhance its operational capabilities, potentially impacting its market positioning and stakeholder relations positively.

China Telecom Announces Final Dividend for 2024
Mar 25, 2025

China Telecom Corporation Limited has announced a final cash dividend of RMB 0.0927 per share for the financial year ending December 31, 2024. The dividend payment is scheduled for July 18, 2025, pending shareholder approval on May 21, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors and solidifying its position in the competitive telecommunications market.

China Telecom Schedules Board Meeting to Approve Annual Results and Dividend
Mar 13, 2025

China Telecom Corporation Limited has announced that its board of directors will meet on March 25, 2025, to approve the company’s annual results and consider the payment of the final dividend for the year ending December 31, 2024. This meeting is significant as it will determine the financial outcomes for the past year and potentially impact shareholder returns, reflecting the company’s ongoing financial health and strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.