Jin Rong Jie·2025-08-15 06:36Core Viewpoint - 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] Financial Performance - EBITDA margin for Q2 increased by 1 percentage point year-on-year due to effective cost control [1] - Net profit for the quarter was 14.2 billion yuan, up 7.1% compared to the same period last year, exceeding both UBS and market forecasts by 2% [1] - The growth rate of net profit outperformed that of China Mobile and China Unicom [1] Business Outlook - The most notable aspect of China Telecom's performance is the stable outlook for traditional telecom services [1] - The mobile ARPU (Average Revenue Per User) for the first half of the year was 46 yuan, remaining roughly flat compared to the same period last year despite macroeconomic challenges [1] - Management expects traditional telecom revenue to maintain stable growth, with ARPU supported by value-added services and AI upgrades [1] Forecast Adjustments - UBS has revised its net profit forecasts for 2025 to 2028 upwards by 0% to 2.5% due to improved cost control assumptions [1] - The target price has been raised from 6.8 HKD to 7.4 HKD, maintaining a "Buy" rating [1]