Ge Long Hui·2025-08-15 06:28Core Insights - UBS report indicates that China Telecom's service revenue for Q2 reached 124.4 billion yuan, representing a year-on-year increase of 2.1% [1] - The EBITDA margin improved by 1 percentage point year-on-year due to effective cost control [1] - Net profit amounted to 14.2 billion yuan, up 7.1% compared to the same period last year, exceeding both UBS and market forecasts by 2% [1] Revenue and Profitability - The most notable aspect of China Telecom's performance is the stable outlook for traditional telecom services [1] - The mobile ARPU for the first half of the year was 46 yuan, remaining roughly flat year-on-year despite adverse macroeconomic factors [1] - Management expects traditional telecom revenue to maintain stable growth, with ARPU supported by value-added services and AI upgrades [1] Future Projections - Assuming improvements in cost control, UBS has raised its net profit forecasts for 2025 to 2028 by 0% to 2.5% [1] - The target price has been increased from 6.8 HKD to 7.4 HKD, with a "Buy" rating assigned [1]