Want to see HK:0728 full AI Analyst Report?
Top Page
China Telecom
(0728)
Select Model
Select Model
Rating:61Neutral
Price Target:
HK$4.50
â–¼(-8.16% Downside)
Action:Downgraded
Date:10/24/26
The score is driven mainly by solid financial resilience (low leverage and strong operating cash flow) but is held back by recent revenue/margin pressure and weak technical positioning (price below key moving averages with soft momentum). A high dividend yield supports the valuation component, though the P/E limits the valuation upside.
Positive Factors
Conservative Balance Sheet
Very low leverage gives China Telecom financial flexibility and limits balance-sheet risk as it funds network and digital-service operations. The substantial equity base also provides resilience if industry pricing or investment requirements remain demanding over the next several quarters.
Negative Factors
Recent Revenue Contraction
Recent top-line contraction indicates that China Telecom is not currently converting its large operating footprint into broad-based revenue growth. If this trend persists, it could limit operating leverage, reduce funds available for expansion, and weaken earnings momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage gives China Telecom financial flexibility and limits balance-sheet risk as it funds network and digital-service operations. The substantial equity base also provides resilience if industry pricing or investment requirements remain demanding over the next several quarters.
Read all positive factors
China Telecom (0728) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$703.95B
Dividend Yield6.43%
Average Volume (3M)36.60M
Price to Earnings (P/E)22.7
Beta (1Y)0.59
Revenue Growth1.18%
EPS Growth-12.12%
CountryHK
Employees277,911
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding13,877,410,000
10 Day Avg. Volume41,139,075
30 Day Avg. Volume36,595,208
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$6.16Price Target Upside25.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.32
Revenue Forecast (FY)HK$516.87B
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 primarily makes money by charging customers for telecommunications and digital services delivered over its networks and platforms. Key revenue streams typically include: (1) Mobile services: recurring subscription fees and usage-base...
China Telecom Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
76
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 506.09B | 509.62B | 529.42B | 507.84B | 481.45B | 439.55B |
| Gross Profit | 141.04B | 142.79B | 150.07B | 146.41B | 249.09B | 230.16B |
| EBITDA | 83.32B | 140.44B | 143.98B | 141.45B | 130.36B | 123.91B |
| Net Income | 28.46B | 32.33B | 33.01B | 30.45B | 27.59B | 25.95B |
Balance Sheet | ||||||
| Total Assets | 879.00B | 871.02B | 866.63B | 835.81B | 807.70B | 762.23B |
| Cash, Cash Equivalents and Short-Term Investments | 92.18B | 111.61B | 102.01B | 91.85B | 76.30B | 75.21B |
| Total Debt | 62.37B | 61.24B | 60.74B | 65.19B | 77.38B | 58.90B |
| Total Liabilities | 407.80B | 395.34B | 410.07B | 388.65B | 371.27B | 331.07B |
| Stockholders Equity | 463.64B | 461.02B | 452.39B | 442.93B | 432.09B | 428.67B |
Cash Flow | ||||||
| Free Cash Flow | 65.91B | 52.43B | 55.00B | 47.34B | 44.92B | 52.36B |
| Operating Cash Flow | 138.32B | 123.68B | 145.27B | 137.51B | 136.43B | 137.53B |
| Investing Cash Flow | -94.73B | -96.86B | -101.29B | -95.49B | -96.80B | -80.29B |
| Financing Cash Flow | -52.84B | -47.00B | -42.90B | -33.48B | -40.91B | -7.52B |
China Telecom Technical Analysis
Neutral
4.90
Price Trends
4.55
Negative
4.49
Positive
4.66
Negative
Market Momentum
-0.03
Positive
50.84
Neutral
38.71
Neutral
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 4.52, above the 50-day MA of 4.55, and above the 200-day MA of 4.66, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.71 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$92.13B | 17.36 | 14.86% | 6.81% | 7.09% | 4.21% | |
70 Outperform | HK$1.75T | 11.53 | 8.81% | 6.78% | 4.21% | -5.91% | |
68 Neutral | HK$159.42B | 6.74 | 6.99% | 8.92% | 3.82% | -22.79% | |
61 Neutral | HK$703.95B | 22.69 | 6.14% | 6.43% | 1.18% | -12.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | HK$38.79B | -459.63 | -40.50% | 7.63% | 7.10% | 70.22% | |
53 Neutral | HK$7.86B | 24.98 | 14.97% | 6.47% | 6.22% | 42.92% |
* Communication Services Sector Average
HK:0728
China Telecom
4.51
-0.72
-13.78%
HK:0941
China Mobile
80.00
-0.69
-0.86%
HK:0762
China Unicom (Hong Kong)
5.21
-4.01
-43.47%
HK:1310
HKBN
5.32
-1.39
-20.75%
HK:6823
HKT and HKT
12.15
1.42
13.19%
HK:0008
PCCW Limited
5.01
-0.15
-2.93%
China Telecom Corporate Events
China Telecom’s Profit Slides Despite 5G and Data Growth in First Three Quarters of 2026
Oct 22, 2026
China Telecom reported unaudited operating revenue of RMB382.4 billion for the first nine months of 2026, with principal business revenue at RMB359.3 billion and EBITDA of RMB108.0 billion. Profit attributable to equity holders fell 14.8% year-on-...
China Telecom reshapes board secretariat with new appointment
Oct 22, 2026
China Telecom has announced a change in its board secretariat, with Executive Director and Chief Financial Officer Li Yinghui stepping down as Secretary of the Board effective 22 October 2026 due to a work reallocation. Li remains an executive dir...
China Telecom Q3 2026 Metrics Highlight Strong 5G Subscriber Growth
Oct 22, 2026
China Telecom reported that its mobile subscriber base reached 445.27 million in the third quarter of 2026, adding 2.84 million users during the period, while 5G subscribers climbed to 330.39 million with a quarterly net increase of 7.89 million. ...
China Telecom Sets Out Board Composition and Key Committee Roles
Oct 22, 2026
China Telecom has announced the current composition of its board of directors, led by Chairman and CEO Ke Ruiwen, President and COO Liu Guiqing, and other executive, non-executive, independent non-executive, and employee directors. The disclosure ...
China Telecom Sets October Board Meeting to Approve Nine-Month Results
Oct 9, 2026
China Telecom Corporation Limited has scheduled a board meeting for 22 October 2026 in Beijing to review and approve the financial results of the company and its subsidiaries for the nine months ended 30 September 2026. The announcement signals th...
China Telecom Names Cloud Veteran Li Yunzhuang Executive Vice President
Aug 20, 2026
China Telecom has appointed 47-year-old senior engineer Li Yunzhuang as Executive Vice President, effective 20 August 2026 until the 2028 annual general meeting. Li brings extensive telecom and management experience from roles in the company’...
China Telecom Declares Interim Dividend and Clarifies Tax Treatment for H Shareholders
Aug 20, 2026
China Telecom has announced an interim ordinary cash dividend of RMB 0.1606 per share for the six months ended 30 June 2026, equivalent to HKD 0.185633 per share for H shareholders based on a specified exchange rate. The ex-dividend date is set fo...
China Telecom Posts Q2 2026 Subscriber Gains Led by 5G Growth
Aug 20, 2026
China Telecom reported key operating statistics for the second quarter of 2026, highlighting continued growth in its mobile business. Total mobile subscribers reached 442.43 million, with a net addition of 1.88 million during the quarter, undersco...
China Telecom Delivers Solid H1 2026 Results and Raises Interim Dividend
Aug 20, 2026
China Telecom reported operating revenue of RMB260.5 billion for the first half of 2026, with principal business revenue of RMB244.1 billion remaining stable on a comparable basis and communications services contributing RMB213.0 billion. Its Inte...
China Telecom Sets August Board Meeting to Approve Interim Results and Weigh Dividend
Aug 10, 2026
China Telecom has scheduled a board meeting for 20 August 2026 to review and approve the interim results for the first half of 2026, covering the performance of the company and its subsidiaries. The board will also consider whether to declare an i...
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.