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| HSI1 | 24,186.83 | +124.11 | 178.21B |
| HSCEI1 | 8,128.25 | +24.98 | 60.40B |
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2026-10-16 12:22:05 BofA Securities issued a report initiating coverage on CHINA TELECOM (00728.HK) H shares with a Buy rating and a TP of HKD6, while also initiating coverage on CHINA TELECOM (601728.SH) A shares with a Neutral rating and a TP of RMB7.2. The broker noted that the valuation of CHINA TELECOM (00728.HK) H shares is attractive, while the current premium of A shares over H shares stands at 67%, above the average 40% over the past year. The TP for H shares was derived based on the average of discounted cash flow and enterprise value multiple (EV/EBITDA) methodologies, while the TP for A shares was estimated based on a 40% A/H premium assumption. The broker believes CHINA TELECOM is a high-quality telecom operator focused on enterprise customers, with a leading cloud business and an integrated AI ecosystem. As of June 2026, the company had 442 million mobile subscribers and 201 million broadband subscribers. Mobile and household ARPU remained resilient, while its premium bundled offerings and enterprise monetization capabilities provided natural distribution channels for cloud, cybersecurity and AI services. During the period, the group had computing power capacity of 118.8 EFLOPS and power capacity of 8 gigawatts, positioning it to benefit from rising demand for cloud and AI infrastructure. The broker added that CHINA TELECOM Cloud recorded revenue of RMB61.8 billion in 1H, up 8% YoY, making it the leading operator cloud service provider. Intelligent services accounted for 13% of service revenue in 1H, driven by a 95% YoY increase in intelligent computing revenue, and the proportion is expected to exceed 20% by 2030. The group has established an intelligent cloud ecosystem covering IaaS, PaaS, DaaS and MaaS, including the Xirang computing power scheduling platform, the Xingchen TokenHub platform, TeleAgent, Xinghai data services and industry applications, forming the strongest integrated cloud, computing power and network architecture. The broker forecast the group's EPS CAGR for 2026-2028 at 5.3%, with a dividend payout ratio of 75%. (da/ad)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |