According to Zhitong Finance APP, telecommunication stocks rose in the afternoon. As of the time of writing, china united network communications (00762) increased by 2.62%, trading at 6.67 HKD; china telecom (00728) rose by 0.88%, trading at 4.59 HKD; china mobile (00941) went up by 0.62%, trading at 72.7 HKD.

ubs group released a research report stating that according to data from china's Ministry of Industry and Information Technology, the telecommunication industry's service revenue in October 2024 increased by 2.6% year-on-year, recovering from 1.8% in the third quarter, but still showing mild growth compared to 1.6% in the same period last year. The report mentioned that mobile data revenue and fixed data revenue grew by 1.7% and 5.2% year-on-year, respectively, which is an improvement compared to 2.0% and 1.1% in September. Traditional telecommunication service revenue grew by 2.1%, while value-added service revenue increased by 4.2%, slowing down when compared to 5.0% in the third quarter and 10.6% in the same period last year.

ubs group expects that telecommunication companies will focus more on the profitability and cash flow of their enterprise business rather than solely pursuing revenue growth. Additionally, ubs group believes that despite the slowdown in industry service revenue growth, telecommunication companies are likely to achieve full-year profit guidance, thanks to improvements in operational leverage, demand-driven capital expenditure investments, and prioritizing profitability as a primary goal for their enterprise business. ubs group maintains a positive outlook on china's telecommunication industry and specifically recommends china mobile as the preferred stock due to its lesser pressure concerning market share growth.