Core Points - The mid-term dividends from 20 companies, including Beijing-Shanghai High-Speed Railway Co., Ltd., Guotai Junan Securities Co., Ltd., and State Power Development Co., Ltd., will exceed 9 billion yuan from October 27 to October 31 [1] - As of October 24, 320 companies in the Shanghai market have distributed over 278 billion yuan in mid-term dividends, with an additional 90 companies expected to distribute over 280 billion yuan [1][2] - The total mid-term dividend amount for 414 companies has reached over 560 billion yuan, setting a historical high [1] Company-Specific Information - Major dividend payers include China Mobile and China Telecom, with cash distributions of 54.1 billion yuan and 16.6 billion yuan, respectively, while the "Big Three" oil companies have collectively distributed approximately 82.5 billion yuan [2] - Companies like Xiamen Gibit Network Technology Co., Ltd. and Jiangsu Shuoshi Biotechnology Co., Ltd. have reported per-share dividends exceeding 2 yuan, with Gibit reaching 6.6 yuan per share [2] Dividend Yield Insights - The dividend yield for 290 companies in the Shanghai market exceeds 3%, with 81 companies yielding over 5% [3] - Among the 320 companies that have implemented mid-term dividends, the average yield is 2.53%, with 102 companies exceeding 3% and 40 companies surpassing 5% [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's operating performance remains stable, with a steady improvement in profitability. For the first three quarters of 2025, the company achieved revenue of 394.3 billion yuan, a year-on-year increase of 0.6%. Service revenue reached 366.3 billion yuan, up 0.9%, and net profit attributable to shareholders was 30.8 billion yuan, growing by 5.0% [2][12]. - The basic business is developing steadily, with a continuous increase in 5G network penetration. The number of 5G users reached 290 million, with a penetration rate of 66.9%. Mobile internet traffic increased by 16.9% year-on-year, and the average data usage per user reached 22.3GB, up 11.4% [12]. - New strategic businesses are expanding in scale, accelerating the cultivation of new growth drivers. The company's IDC revenue reached 27.5 billion yuan, growing by 9.1%, while intelligent revenue increased by 62.3% [12]. - Cost control has been effective, contributing positively to profit growth. Operating expenses for the first three quarters were 359.3 billion yuan, a year-on-year increase of 0.3%, while network operation costs decreased by 3.0% [12]. Summary by Sections Financial Performance - In the first three quarters of 2025, the company achieved total revenue of 394.3 billion yuan, with a net profit of 30.8 billion yuan, reflecting a year-on-year growth of 5.0% [2][6]. - The EBITDA for the same period was 115.6 billion yuan, an increase of 4.2% [12]. Business Development - The basic business is growing steadily, with a focus on enhancing customer service and product offerings. The 5G user base and mobile internet traffic are key indicators of this growth [12]. - The new strategic business areas are showing significant growth, particularly in intelligent services and cloud solutions, indicating a shift towards high-quality development [12]. Cost Management - The company has successfully managed costs, with a slight increase in operating expenses but a notable decrease in network operation costs, showcasing effective resource utilization [12].

Investment Rating - The report maintains a rating of "Accumulate" for China Telecom with a target price of 9.07 CNY [6][12]. Core Insights - For the first three quarters of 2025, China Telecom reported revenue of 394.3 billion CNY, a year-on-year increase of 0.6%, with service revenue at 366.3 billion CNY, up 0.9%. The net profit attributable to shareholders was 30.8 billion CNY, reflecting a 5.0% increase, which outpaced revenue growth [2][12]. - The report highlights strong performance in new business segments, with 5G network users reaching 290 million, a penetration rate of 66.9%. IDC revenue grew by 9.1% to 27.5 billion CNY, while intelligent revenue surged by 62.3% [12]. Financial Summary - Total revenue projections for 2025-2027 are 538.5 billion CNY, 553.5 billion CNY, and 568.8 billion CNY respectively, with net profits expected to be 34.7 billion CNY, 36.3 billion CNY, and 37.7 billion CNY [4][12]. - The financial metrics indicate a steady increase in net profit margins and return on equity, with a projected net profit margin of 6.4% for 2025 [4][12].

Core Viewpoint - The company reported a slight revenue growth of 0.6% year-on-year for the first three quarters of 2025, with a total revenue of 394.3 billion yuan, and a net profit increase of 5.0% to 30.8 billion yuan, indicating a stronger profit growth compared to revenue growth [1][2]. Financial Performance - Revenue for the first three quarters of 2025 reached 394.3 billion yuan, with service revenue at 366.3 billion yuan, reflecting a year-on-year increase of 0.6% and 0.9% respectively [2]. - The net profit attributable to the parent company was 30.8 billion yuan, up 5.0% year-on-year, while the non-recurring net profit remained stable at 28.7 billion yuan [1][2]. - In Q3 2025, the company reported a revenue of 124.8 billion yuan, a decrease of 0.91% year-on-year, and a net profit of 7.76 billion yuan, which is an increase of 3.60% year-on-year [2]. Business Growth - The company experienced significant growth in new business areas, with 5G network users reaching 290 million, a penetration rate of 66.9%, and gigabit broadband user penetration at approximately 31.0% [2]. - IDC revenue grew by 9.1% year-on-year to 27.5 billion yuan, while security revenue increased by 12.4% to 12.6 billion yuan. Other notable growth areas included smart revenue (62.3% increase), video network revenue (34% increase), satellite communication revenue (23.5% increase), and quantum revenue (134.6% increase) [2]. Cost and Cash Flow - In Q3 2025, the company's expense ratios were as follows: sales (10.40%), management (6.90%), finance (0.13%), and R&D (3.48%), with respective year-on-year changes of +0.98 percentage points, -0.28 percentage points, -0.08 percentage points, and +0.24 percentage points [3]. - The net cash flow from operating activities was 87.3 billion yuan, with a year-on-year decline narrowing to 10.37% [3].

Core Viewpoint - The Shanghai Composite Index rose by 0.71% on October 24, with the communication and electronics sectors leading the gains at 4.73% and 4.72% respectively, while the oil and coal sectors experienced declines of 1.36% and 1.29% [1] Market Overview - A total net inflow of 21.96 billion yuan was observed in the two markets, with 11 sectors seeing net inflows. The electronics sector had the highest net inflow of 22.39 billion yuan, followed by the power equipment sector with a 2.20% increase and a net inflow of 3.71 billion yuan [1] - Conversely, 20 sectors experienced net outflows, with the pharmaceutical and biological sector leading with a net outflow of 2.49 billion yuan, followed by the food and beverage sector with a net outflow of 1.75 billion yuan [1] Communication Sector Performance - The communication sector saw a rise of 4.73% with a net inflow of 2.66 billion yuan, where 98 out of 125 stocks in the sector increased in value, and one stock hit the daily limit [2] - The top three stocks with the highest net inflow in the communication sector were Zhongji Xuchuang with 1.26 billion yuan, followed by Xinyi Sheng and Changxin Bochuang with 800 million yuan and 265 million yuan respectively [2] - The stocks with the highest net outflows included China Unicom, Sanwei Communication, and China Telecom, with outflows of 169 million yuan, 160 million yuan, and 107 million yuan respectively [3]

Investment Rating - The report maintains an "Outperform" rating for the company [4][9]. Core Insights - The company is projected to achieve revenues of RMB 5.39 trillion, RMB 5.54 trillion, and RMB 5.69 trillion for the years 2025 to 2027, with net profits attributable to shareholders expected to be RMB 34.70 billion, RMB 36.30 billion, and RMB 37.70 billion respectively [4][9]. - For the first three quarters of 2025, the company reported revenues of RMB 3.94 trillion, a year-on-year increase of 0.6%, with service revenues at RMB 3.66 trillion, up 0.9% year-on-year. The net profit attributable to shareholders was RMB 30.80 billion, reflecting a 5.0% increase year-on-year, which outpaced revenue growth [4][9]. - The report highlights strong growth in emerging business sectors, with 5G users reaching 290 million and a penetration rate of 66.9%. The revenue from IDC was RMB 27.50 billion, up 9.1% year-on-year, while security revenue was RMB 12.60 billion, up 12.4% year-on-year [4][9]. Financial Summary - The financial summary indicates total revenue for 2023A at RMB 507.84 billion, with a projected growth of 6.9% for 2024A and a steady increase of approximately 2.8% annually through 2027E [3]. - Net profit attributable to shareholders for 2023A is reported at RMB 30.45 billion, with expected growth rates of 10.3% for 2024A and 5.2% for 2025E [3]. - The report provides a detailed breakdown of financial ratios, including a projected price-to-earnings (P/E) ratio of 18.08 for 2025E and a price-to-book (P/B) ratio of 1.8 for the same year [3][4].

Market Overview - On October 24, the communication services sector declined by 0.25%, with *ST Yitong leading the drop [1] - The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1] Stock Performance - Notable gainers in the communication services sector included: - ST Xintong: Closed at 6.48, up 5.02% with a trading volume of 74,000 shares and a turnover of 47.49 million yuan [1] - Putian Technology: Closed at 24.58, up 3.45% with a trading volume of 168,900 shares and a turnover of 416 million yuan [1] - Pingzhi Information: Closed at 32.73, up 2.86% with a trading volume of 40,000 shares and a turnover of 130 million yuan [1] - Conversely, *ST Yitong experienced a decline, closing at 96.6, down 3.39% with a trading volume of 92,400 shares and a turnover of 92.96 million yuan [2] Capital Flow - The communication services sector saw a net outflow of 408 million yuan from institutional investors, while retail investors contributed a net inflow of 313 million yuan [2] - Specific stock capital flows included: - Aofei Data: Net outflow of 49.59 million yuan from institutional investors, with a net inflow of 10.08 million yuan from retail investors [3] - Putian Technology: Net inflow of 39.74 million yuan from institutional investors, with a net outflow of 2.43 million yuan from retail investors [3] - Data Port: Net inflow of 39.55 million yuan from institutional investors, with a net outflow of 56.21 million yuan from retail investors [3]

Core Viewpoint - The launch of the first domestic eSIM-enabled phone, iPhone Air, has been met with operational challenges, particularly regarding age restrictions for eSIM activation, which may hinder access for older users [1][3]. Group 1: eSIM Activation Challenges - A user reported being denied eSIM activation due to being over 60 years old, as the current policy requires users to be between 18 and 60 years old [3]. - China Telecom confirmed the age restriction for eSIM activation, which is part of the trial phase of the eSIM service [5]. - In contrast, China Unicom and China Mobile have set lower age limits, with Unicom requiring users to be at least 16 years old and Mobile requiring 18 [5]. Group 2: Complexity of eSIM Process - The eSIM activation process is described as cumbersome, requiring users to visit physical stores with identification and devices, as online activation is not available during the commercial phase [5]. - Users must return to their number's original location for eSIM conversion, as cross-province conversions are not supported [5]. - A user managed to convert a physical SIM to eSIM by falsely claiming to have lost their SIM card, highlighting potential loopholes in the system [6]. Group 3: Security and Future Developments - The restrictions on eSIM services are attributed to risk management and technical security concerns, particularly regarding the potential for remote anonymous account creation and telecom fraud [8]. - The three major operators had previously suspended eSIM services, with a planned resumption in June 2025 under strict conditions, including offline real-name activation and security certificate requirements [8]. - Future advancements in remote real-name authentication technology and system upgrades are expected to simplify the eSIM activation process, allowing users to complete it online without visiting physical stores [8].

Group 1: Industry Performance Overview - The Hong Kong stock market has seen significant performance reports from various sectors, including non-ferrous metals, insurance, and telecommunications, with leading companies in non-ferrous metals and insurance showing rapid growth, while telecommunications leaders maintain stable performance [1] - Resource stocks, particularly in the rare earth sector, have reported substantial increases in earnings, with Jinli Permanent Magnet achieving a revenue of 5.373 billion yuan, up 7.16%, and a net profit of 515 million yuan, up 161.81% [2][3] - Zijin Mining reported a revenue of 254.2 billion yuan, a 10.33% increase, and a net profit of 37.864 billion yuan, up 55.45%, with its gold business being a significant profit driver [2][3] Group 2: Insurance Sector Growth - Major insurance companies have reported rapid earnings growth, with China Pacific Insurance expecting a net profit increase of 40% to 60% for the first three quarters of 2025 [6] - China Life Insurance anticipates a net profit of approximately 156.785 billion to 177.689 billion yuan, reflecting a growth of 50% to 70% [7] - New China Life Insurance expects a net profit of 29.986 billion to 34.122 billion yuan, a year-on-year increase of 45% to 65% [7] Group 3: Telecommunications Sector Stability - The three major telecommunications operators, China Mobile, China Telecom, and China Unicom, reported stable growth, with China Mobile achieving a revenue of 794.7 billion yuan, up 0.4%, and a profit of 115.4 billion yuan, up 4% [8][9] - China Telecom's revenue reached 396.998 billion yuan, a 0.6% increase, while China Unicom reported a revenue of 293 billion yuan, up 1% [9] Group 4: Retail Sector Losses - High-end retail giant Gao Xin Retail reported a projected net loss of 110 to 140 million yuan for the six months ending September 30, 2025, compared to a profit of 186 million yuan in the same period last year [10][11] - The loss is attributed to increased market competition and weak consumer demand, leading to a decline in average transaction value and revenue [11]

Core Insights - The three major telecom operators in China reported revenue and net profit growth for the third quarter, despite a slowdown in revenue growth [2] Group 1: Financial Performance - China Mobile reported a total revenue of 794.67 billion yuan for the first three quarters, a year-on-year increase of 0.41%, with a net profit of 115.35 billion yuan, up 4.03% [1] - China Telecom's revenue for the first three quarters was 394.27 billion yuan, a 0.59% increase year-on-year, with a net profit of 30.77 billion yuan, up 5.03% [1] - China Unicom achieved a revenue of 292.99 billion yuan for the first three quarters, a 1% increase year-on-year, with a net profit of 8.77 billion yuan, up 5.2% [1] Group 2: Daily Earnings - In the first three quarters, China Mobile earned an average of 427 million yuan per day, leading the sector [2] - China Telecom's daily earnings were 114 million yuan, while China Unicom's daily earnings stood at 33 million yuan [2] Group 3: User Growth - As of September 30, China Mobile had a total of 1.009 billion mobile customers, with a net increase of 4.56 million, and 622 million 5G customers, netting an increase of 23 million [3] - China Unicom's mobile customer base reached 356 million, with a net increase of 12.48 million, including 225 million 5G customers and 129 million fixed broadband users [3] - China Telecom reported a total of 437 million mobile customers, with a net increase of 12.67 million, and 292 million 5G customers, with a penetration rate of 66.9% [3]