智通财经网·2025-08-15 03:52Core Viewpoint - UBS reports that China Telecom (00728) achieved a service revenue of 124.4 billion RMB in Q2, representing a year-on-year increase of 2.1% [1] Financial Performance - EBITDA margin increased by 1 percentage point year-on-year due to effective cost control [1] - Net profit reached 14.2 billion RMB, up 7.1% compared to the same period last year, exceeding both UBS and market forecasts by 2% [1] - The growth rate outperformed China Mobile (00941) and China Unicom (00762) [1] Future Projections - UBS raised the net profit forecast for China Telecom for 2025 to 2028 by 0% to 2.5% based on improved cost control assumptions [1] - Target price increased from 6.8 HKD to 7.4 HKD, implying a dividend yield of 4.4% for 2026 [1] - The rating is maintained as "Buy" [1] Business Outlook - The most notable aspect of China Telecom's performance is the stable outlook for traditional telecom services [1] - Mobile ARPU stood at 46 RMB, remaining roughly flat year-on-year despite macroeconomic challenges [1] - Mixed broadband ARPU was 48.3 RMB, also stable compared to the previous year [1] - Management expects traditional telecom revenue to maintain stable growth, with ARPU supported by value-added services and AI upgrades [1]