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China Telecom
(0728)
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Rating:70Outperform
Price Target:
HK$5.00
â–²(2.04% Upside)
Action:Upgraded
Date:08/21/26
Overall score reflects stable fundamentals supported by a strong balance sheet and robust absolute cash generation, offset by cooling revenue and margin compression that limit earnings momentum. Technicals are mixed (near-term improving but longer-term still weak), while valuation is helped by a high dividend yield despite a mid-range P/E.
Positive Factors
Conservative Balance Sheet
Low leverage and a growing equity base reduce refinancing and solvency risk. This gives China Telecom financial flexibility to sustain network investment and support operations through competitive or regulatory changes.
Negative Factors
Cooling Revenue Growth
Recent revenue stagnation indicates that mature connectivity markets and competitive pressure are limiting expansion. Without renewed growth from enterprise digital services or higher-value packages, weaker top-line momentum may persist over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and a growing equity base reduce refinancing and solvency risk. This gives China Telecom financial flexibility to sustain network investment and support operations through competitive or regulatory changes.
Read all positive factors
China Telecom (0728) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$643.29B
Dividend Yield6.32%
Average Volume (3M)72.47M
Price to Earnings (P/E)19.8
Beta (1Y)0.45
Revenue Growth0.29%
EPS Growth-9.25%
CountryHK
Employees277,911
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.32
Shares Outstanding13,877,410,000
10 Day Avg. Volume67,881,433
30 Day Avg. Volume72,465,706
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$5.77Price Target Upside17.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.32
Revenue Forecast (FY)HK$518.39B
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 makes money mainly by charging for telecommunications connectivity and related digital services across consumer, enterprise, and government customers. Key revenue streams include: (1) Mobile services: recurring service revenue from m...
China Telecom Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 509.83B | 509.62B | 529.42B | 507.84B | 481.45B | 439.55B |
| Gross Profit | 143.22B | 142.79B | 150.07B | 146.41B | 249.09B | 230.16B |
| EBITDA | 86.06B | 140.44B | 127.81B | 141.45B | 113.59B | 102.45B |
| Net Income | 29.60B | 32.33B | 33.01B | 30.45B | 27.59B | 25.95B |
Balance Sheet | ||||||
| Total Assets | 884.56B | 871.02B | 866.63B | 835.81B | 807.70B | 762.23B |
| Cash, Cash Equivalents and Short-Term Investments | 102.61B | 111.61B | 102.01B | 91.85B | 76.30B | 75.21B |
| Total Debt | 63.40B | 61.24B | 60.74B | 65.19B | 77.38B | 58.90B |
| Total Liabilities | 398.43B | 395.34B | 410.07B | 388.65B | 371.27B | 331.07B |
| Stockholders Equity | 471.80B | 461.02B | 452.39B | 442.93B | 432.09B | 428.67B |
Cash Flow | ||||||
| Free Cash Flow | 68.80B | 52.43B | 55.00B | 47.34B | 44.92B | 52.36B |
| Operating Cash Flow | 141.25B | 123.68B | 145.27B | 137.51B | 136.43B | 137.53B |
| Investing Cash Flow | -96.90B | -96.86B | -101.29B | -95.49B | -96.80B | -80.29B |
| Financing Cash Flow | -57.28B | -47.00B | -42.90B | -33.48B | -40.91B | -7.52B |
China Telecom Technical Analysis
Positive
4.90
Price Trends
4.47
Positive
4.65
Positive
4.83
Negative
Market Momentum
0.06
Negative
54.38
Neutral
13.72
Positive
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 4.9 is above the 20-day moving average (MA) of 4.59, above the 50-day MA of 4.47, and above the 200-day MA of 4.83, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 13.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$1.74T | 11.24 | 9.13% | 6.85% | 4.26% | -4.41% | |
78 Outperform | HK$93.42B | 17.60 | 14.86% | 6.68% | 7.09% | 4.21% | |
70 Outperform | HK$643.29B | 19.84 | 6.40% | 6.32% | 0.29% | -9.25% | |
68 Neutral | HK$172.27B | 7.35 | 6.99% | 8.20% | 3.82% | -22.79% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | HK$8.16B | 39.22 | 9.40% | 6.23% | 8.01% | 58.51% | |
52 Neutral | HK$41.31B | -489.45 | -6.77% | 7.19% | 7.10% | 70.22% |
* Communication Services Sector Average
HK:0728
China Telecom
4.58
-0.83
-15.39%
HK:0941
China Mobile
79.10
-1.03
-1.28%
HK:0762
China Unicom (Hong Kong)
5.67
-3.72
-39.62%
HK:1310
HKBN
5.52
0.70
14.59%
HK:6823
HKT and HKT
12.39
1.55
14.33%
HK:0008
PCCW Limited
5.32
0.42
8.59%
China Telecom Corporate Events
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...
China Telecom Appoints Guan Lixin as Employee Director for Ninth Board
Jun 2, 2026
China Telecom has named senior economist Guan Lixin as Employee Director for the ninth session of its board, following a unanimous election by employee representatives in line with Chinese corporate governance rules. Her term will run from June 2,...
China Telecom Clarifies Board and Committee Line-Up to Highlight Governance Focus
Jun 2, 2026
China Telecom has announced the current composition of its board of directors, led by Chairman and Chief Executive Officer Ke Ruiwen, President and Chief Operating Officer Liu Guiqing, and other executive, non-executive, independent non-executive,...
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.