Ge Long Hui·2025-08-15 04:54Core Viewpoint - Morgan Stanley's research report indicates that Chinese telecom operators are expected to outperform the Hang Seng Index from 2019 to 2024, with a double-digit gap, and have shown better performance than the market this year [1] Group 1: Telecom Operators Performance - The top three telecom operators not only offer attractive dividend yields but are also growth companies with AI potential [1] - The rise of AI and DeepSeek is expected to drive a re-acceleration in cloud computing and artificial intelligence data center revenues, further enhancing valuations [1] - The report anticipates potential stock price increases for China Mobile, China Unicom, and China Telecom ranging from 11% to 95% [1] Group 2: Preferred Stocks and Ratings - Among the three telecom operators, China Telecom is preferred due to having the largest cloud platform, making it the most likely to benefit from the AI theme and experience valuation re-rating and growth in cloud computing [1] - Following China Telecom, China Unicom and China Mobile are also favored [1] - The report maintains an "overweight" rating for the three operators' A-shares but shows a stronger preference for H-shares, which are trading at a discount of 29% to 35% compared to A-shares [1]