Glonghui, April 24 | UBS published a research report stating that China Telecom's performance in the first quarter of fiscal year 2024 was in line with expectations. Among them, service revenue growth has exceeded the industry level and is basically in line with the company's management's good growth guidelines throughout the year. Net profit also increased by 7.7% compared to last year, which is also in line with management's annual guidance of higher than revenue growth. As a result, the bank raised China Telecom's target price from HK$5.6 to HK$5.7, maintaining the “buy” rating. UBS quoted management forecasts that the company will maintain rapid growth in industrial digitization revenue for the full year of fiscal 2024. As for the decline in China Telecom's operating cash flow, the bank believes that the related issues have been brought under control, all because the company is trying to recover cash and will be more cautious about future projects to reduce potential credit aspects. The bank also expects that the company's annual guidance will remain unchanged. China Telecom's dividend payout ratio is expected to exceed 75% for the next three years starting in 2024.