According to the report published by Citibank, China Telecom (00728.HK)'s first-quarter results were slightly better than expected service revenue, and total revenue rose 5% and 3.8% year-on-year, to 4.5% better than the Ministry of Industry and Information Technology data, respectively. The year-on-year growth rate of the industry was the fastest growing of the three largest mainland telecommunications companies, which also reflected the relative resilience of its cloud business, industrial digitalization (revenue increased 11% year-on-year in the first quarter), and traditional business performance. It is expected that both telecom and interbank service revenue will continue to improve, and telecom is expected to outperform its peers. Maintain the purchase rating and target price of HK$4.7 for industry-preferred H shares.