Glonghui, April 25 | CICC released a report indicating that China Telecom's service revenue growth was steady; revenue and net profit for the first quarter increased by 3.8% and 7.7% year-on-year respectively, in line with this forecast. According to the report, it was observed that the company's service revenue grew strongly in the first quarter, rising 5% year-on-year. In addition to R&D expenses, the increase in costs and expenses was less than the increase in revenue, reflecting strict cost and expenditure control. The bank slightly lowered its revenue forecast for this year and next two years by 0.9% and 1.9%, respectively, and generally maintained its earnings estimates for this year and next. The bank maintained the “outperforming industry” rating for H shares, with a target price of HK$5.8.