China Telecom's second-quarter service revenue has a great chance of maintaining its leading position among its peers thanks to stable performance in its core business.
According to the research report released by Nomura, China Telecom's second-quarter service revenue has a great chance of maintaining its leading position among its peers. It maintains a 'buy' rating and raises the target price by 13.7% from HKD5.1 to HKD5.8.
The bank believes that China Telecom has a great chance of maintaining its leading position among its peers in service revenue growth in the second quarter due to the stable performance in its core business, despite the slowdown in emerging businesses such as cloud computing. From the perspective of the consistently rising dividend, China Telecom is still attractive. The bank predicts a 4-5% increase in service revenue and a 5-7% increase in profit for the second quarter, which is slower than the first-quarter growth. In addition, the bank has lowered its service revenue forecast for 2024-2026 by 0.6% to 1.1% and its profit forecast by 5.4% to 7.6%.
