GLONGHUI, August 5 | According to the Jefferies Research Report, due to prudent spending by state-owned enterprises and reduced capital expenditure in the telecommunications industry, the revenue growth of the three major Chinese telecommunications stocks, China Communications Services, and China Tower in the first half and second quarter may not have been as good as expected. The bank believes that China's communications services are the most resilient. Because they benefit most from China's active promotion of digital transformation, AI adoption trends (meaning more data centers will be built), and decarbonization (demand for energy management software will rise), there will be medium unit revenue growth, while other stocks generally recorded low unit growth. However, due to strict cost control, lower growth in capital expenditure and depreciation and amortization, and high non-operating income, I believe that profit performance will not be far different from expectations. According to the bank, despite declining performance forecasts, the five stocks mentioned above are still very attractive due to reasons such as strong and rising free cash flow, ideal shareholder returns, and high yields. Their preferences are China Mobile, China Communications Services, China Telecom, Unicom, and China Tower in that order. The bank raised China Mobile's target price from HK$92.21 to HK$101.69, China Telecom's target price by 2% to HK$5.45, and China Unicom's target prices from HK$7.79 and HK$6.3 to HK$10.67 and HK$6.33 respectively. However, the target price for China Tower dropped 5% to HK$1.2, all maintaining a “buy” rating.