Ge Long Hui·2025-10-23 05:16Core Viewpoint - UBS reports that China Telecom's service revenue for Q3 increased by 0.5% year-on-year to 117.2 billion yuan, which is 2% lower than market expectations, attributed to macroeconomic impacts [1] Financial Performance - EBITDA for the period grew by 2.4% year-on-year to 35 billion yuan, while net profit increased by 3.6% to 7.7 billion yuan, showing a slowdown compared to the 5.5% growth in the first half of the year [1] - The growth in IDC revenue accelerated in Q3, reaching 12.7%, surpassing the 7.4% growth in the first half and 7.3% from the previous year, indicating strong AI-driven computing demand benefiting the IDC sector [1] Forecast Adjustments - Based on the latest performance, UBS has revised its revenue and net profit forecasts for China Telecom for 2025 to 2027 down by 1% to 4% to reflect the slowdown in growth [1] - The target price for China Telecom has been adjusted from 7.4 HKD to 7.2 HKD [1]