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CICC Keeps Outperform on CHINA TELECOM w/ TP HKD6.3 but Trims 2026 NP Forecast
2026-03-25 14:33:38
CHINA TELECOM (00728.HK) has announced its 2025 annual results, in which it reported a YoY increase of 0.07% in operating revenue to RMB523.925 billion, in line with market expectations, according to CICC's research report.

Due to higher-than-expected non-operating expenses, CHINA TELECOM's net profit attributable to shareholders grew by only 0.52% YoY to RMB33.185 billion, below market forecasts. In 4Q25, operating revenue fell by 1.48% YoY to RMB129.655 billion, while net profit attributable to shareholders dropped by 35.06% YoY to RMB2.411 billion.

Considering the impact of VAT adjustments and the slowdown in industrial business revenue, CICC has reduced its 2026 net profit forecast for CHINA TELECOM by 5.8% to RMB28.9 billion and introduced a 2027 net profit forecast of RMB29.4 billion for the first time.

CICC has kept an Outperform rating and a target price of HKD6.3 for CHINA TELECOM, which has a 28.8% upside potential from the current price.
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