Zhi Tong Cai Jing·2025-10-23 02:19Core Viewpoint - China Telecom (00728) reported a revenue growth of 0.6% year-on-year to 394.3 billion RMB for the first three quarters of 2025, with service revenue increasing by 0.9% to 366.3 billion RMB and net profit attributable to shareholders rising by 5% to 30.8 billion RMB, aligning with expectations [1] Financial Performance - Revenue for the first three quarters of 2025 reached 394.3 billion RMB, reflecting a 0.6% increase year-on-year [1] - Service revenue grew by 0.9% to 366.3 billion RMB [1] - Net profit attributable to shareholders increased by 5% to 30.8 billion RMB [1] Future Projections - China International Capital Corporation (CICC) maintains an "outperform industry" rating for the company's A-shares with a target price of 8.3 RMB, corresponding to price-to-earnings ratios of 21.9x and 20.9x for 2025 and 2026, respectively [1] - For Hong Kong shares, CICC also maintains an "outperform industry" rating with a target price of 7 HKD, reflecting price-to-earnings ratios of 16.9x and 15.9x for 2025 and 2026, respectively [1] Adjustments in Forecasts - Due to macroeconomic impacts on business growth, CICC has revised down the service revenue forecasts for China Telecom by 1% and 1.9% for 2025 and 2026, now estimating 487 billion RMB and 491.9 billion RMB, respectively [1] - Despite the adjustments in service revenue forecasts, the profit projections for 2025 and 2026 remain unchanged due to strict control over network operation costs [1]