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BOCI Expects CHINA TELECOM 3Q Profit to Fall 13.5% YoY as VAT Pressure Persists
2026-10-13 11:16:51
BOCI published a report expecting CHINA TELECOM (00728.HK) to post net profit of RMB6.6 billion for 3Q26, down 13.5% YoY. Given a low base in 4Q26, net profit was expected to resume YoY growth of 33.3%.

The broker maintained its FY2026 revenue and earnings forecasts for CHINA TELECOM, with service revenue trends expected to be broadly in line with industry fundamentals, while VAT pressure persists. EBITDA margin for 3Q26 was forecast at 28.5%.

The broker maintained its Buy rating on CHINA TELECOM H shares, with TP unchanged at HKD6.96. Interim dividend payout ratio this year was 75%. The broker maintained its operator investment preference ranking as CHINA TELECOM > CHINA MOBILE (00941.HK) > CHINA UNICOM (00762.HK), in light of higher earnings visibility and shareholder returns.
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