The company's performance in the first three quarters of China Telecom meets expectations in terms of revenue and net profit. Its service revenue growth rate is higher than the industry average, with fast growth in mobile users, ARPU reaching 45.6 RMB, flat year-on-year.
Finet News APP learned that CICC released a report stating that it maintains the unchanged profit forecast for China Telecom (00728) for the current and next year, maintaining an 'outperform industry' rating and a target price of 5.8 Hong Kong dollars, corresponding to forecasted PEs of 14.7 and 13.5 times for the current and next year respectively.
The company's performance in the first three quarters of China Telecom meets expectations in terms of revenue and net profit. Its service revenue growth rate is higher than the industry average, with fast growth in mobile users, ARPU reaching 45.6 RMB, flat year-on-year. The report mentioned that China Telecom's sales, general and administrative expenses, network operations and support costs are well controlled in the first three quarters, with accounts receivable growth narrowing compared to the first half of the year, but the operating cash flow (OCF) has slightly expanded its decline due to payable impacts.
