Ge Long Hui·2026-01-08 06:53Core Viewpoint - Goldman Sachs expresses a positive outlook on the shift of Chinese telecom operators' capital expenditure from traditional telecom networks to artificial intelligence computing infrastructure and new business expansions, but notes that the growth of service and innovative businesses in the domestic telecom industry is under short-term pressure [1] Telecom Services - Future growth in telecom services is expected to stagnate due to a slowdown in 5G applications affecting both paying users and average revenue per user (ARPU) growth [1] - There is a positive outlook on the increase of value-added services, but the expansion of ARPU will depend on breakthroughs in artificial intelligence applications and functionalities to drive user traffic [1] Innovative Businesses - A long-term positive view is maintained regarding the revenue contribution from AI-related solutions and the growth of computing capital expenditure [1] - However, macroeconomic uncertainties are expected to lead companies to prioritize quality projects, which may impact short-term growth [1] Price Target Adjustments - Goldman Sachs has lowered the target price for China Telecom from HKD 7.9 to HKD 6 and for China Unicom from HKD 11.5 to HKD 8.8, with both ratings downgraded from "Buy" to "Neutral" [1] - The earnings forecasts for both companies for the next two years have been reduced by 6% to 7% [1]