Glonghui, January 8 | UBS released a report saying that Chinese telecommunications stocks are a haven of macroeconomic uncertainty this year. It is estimated that the service revenue of the Chinese telecommunications industry will increase 6.3% year-on-year this year, slightly lower than 6.5% last year, mainly affected by the economic outlook. The growth of traditional telecom business remained stable at over 3%, and the industrial Internet business grew by 20%, contributing more than half of the overall service revenue growth, but related business prospects are still affected by macroeconomics. The bank estimates that China Mobile, China Telecom, and China Unicom service revenue will increase by 6.4%, 6.3% and 5.9%, respectively, and net profit will increase by 6%, 9% and 12.7%, respectively. The bank estimates that 5G capital expenditure will continue to decrease, the number of 5G base stations has exceeded government plans, and operators can balance growth and profitability. In terms of dividends, it is estimated that China Telecom and Unicom's dividend payout ratios this year and beyond will remain at 70% and 54%, respectively. China Mobile's dividend payout ratio is estimated at 72% this year. Since the company has large cash reserves, it is believed that 2025 will increase the dividend ratio and continue to improve shareholder returns. The bank has a “buy” rating for all three Chinese telecom stocks and chose China Mobile, mainly because of its traditional telecom business, which provides reliable profits and cash flow.