According to the CICC research report, mobile ARPU grew steadily year on year, and China Telecom (601728.SH)'s net profit growth in the first half of the year exceeded expectations. 1H24 mobile communication service revenue was 105.2 billion yuan, +3.6% year over year; mobile user ARPU was 46.3 yuan, +0.2% year over year. The steady increase in mobile revenue is mainly due to large-scale management and value management. The bank believes that mobile communication service revenue is expected to maintain steady growth throughout the year, and mobile ARPU will increase steadily. The growth rate of accounts receivable at the end of the 2nd quarter (+18.4% year over year) decreased compared to the growth rate at the end of the 1st quarter (+24.5% year over year), and the growth of the company's accounts receivable was controlled to a certain extent. Considering that government and enterprise customer accounts receivable were mainly repaid in the 4Q period, it is believed that the year-on-year growth rate of accounts receivable for the whole year is expected to narrow on a 1H basis. Furthermore, the company's semi-annual capital expenditure growth slightly exceeded expectations. The annual guide capital expenditure was less than 96 billion yuan, which is expected to support free cash flow. The bank maintained the “outperforming market” rating for AH shares, with target prices of HK$8.30 and HK$5.80.