Xin Lang Cai Jing·2025-08-15 09:12Group 1 - The core viewpoint of the article is that Chinese telecom operators are expected to outperform the Hang Seng Index from 2019 to 2024, with a double-digit difference, and have shown better performance than the market year-to-date [1] - The top three telecom operators are providing attractive dividend yields, and the industry is projected to achieve a compound annual growth rate (CAGR) of 5% in profits from 2026 to 2027 due to healthy competition, improved investment returns, and optimized capital expenditures [1] - Chinese telecom operators have significant exposure to enterprise digitalization, which is growing at a much faster rate than traditional telecom services [1] Group 2 - The rise of AI and DeepSeek in China is expected to drive a re-acceleration in cloud computing and artificial intelligence data center revenues [1] - Among the three major telecom operators, China Telecom is preferred due to having the largest cloud platform, which is anticipated to benefit the most from the AI theme in China, leading to a valuation re-rating and growth in cloud computing business [1] - Following China Telecom, China Unicom and China Mobile are also considered, but with less favorable prospects compared to China Telecom [1]