Key investment points: Sales of equipment and mobile phones dragged down revenue year-on-year. CITIC Telecom (1883.HK) Interim Results: Turnover for the first half of 2017 fell 6.1% from the same period last year to HK$3.59 billion; net profit increased 12.79% year over year to HK$461 million, net interest rate increased 12.79% year over year, earnings of HK$0.13 per share, and interim dividend of HK$3.00 cents per share, up 5.3% year on year. The decline in sales of equipment, mobile phones, and mobile phone sales and the decline in revenue from the international telecommunications business and fixed network business led to a year-on-year decline in turnover, but at the same time, due to improving the efficiency of enterprise operations, the company's sales and service costs decreased more than the decline in revenue, so net profit increased slightly. DataMall (free travel) successfully expanded into new regions. In the first half of this year, the company succeeded in accelerating the development of DataMall's free travel business. The business coverage has expanded to new popular travel destinations such as Singapore, Thailand, and South Korea, and the business continues to grow rapidly. In the first half of this year, it has successfully brought in the ideal revenue of HK$26.3 million, 1.6 times that of the full year of 2016. A2P (app-to-person) SMS may be a driving force for company growth. In the first half of this year, the company successfully accelerated the development of the A2P corporate SMS business. SMS revenue increased 26.4% over the same period in 2016. It has successfully reversed the declining trend of the SMS business and has become one of the driving forces of the company's growth. National strategies such as the “Belt and Road” and the “Guangdong-Hong Kong-Macao Greater Bay Area” have brought new development opportunities. The company is mainly engaged in cross-border communication business. Such national strategies can bring new development opportunities to the company. The company accelerates expansion and coverage into the international market through the mainland China market and Hong Kong and Macao as the base and bridge. Our view: CITIC Telecom is a leading international telecom operator and integrated information service provider in Asia. It focuses on the China-Hong Kong telecom market and provides interconnection services to global telecom operators. Relying on national strategies such as the “Belt and Road” and the “Guangdong-Hong Kong-Macao Greater Bay Area”, the company is actively launching new service products. The current stock price of the company corresponds to the 2017 performance of about 9 times PE, so investors are advised to pay attention. Risk Warning: New business promotion falls short of expectations.