Dongguan Securities·2025-09-03 02:51Investment Rating - The report maintains a "Buy" rating for China Telecom (601728) [4][7]. Core Insights - In the first half of 2025, China Telecom achieved a revenue of 2694.22 billion yuan, representing a year-on-year growth of 1.3%. The net profit attributable to shareholders was 230 billion yuan, up 5.5% year-on-year [5]. - The company is focusing on digital consumption trends and is driving growth through both foundational and innovative business models [5]. - The mobile communication service revenue reached 1066 billion yuan, with a 5G user penetration rate increasing by 6.1 percentage points year-on-year, and the mobile user base growing to 433 million [5]. - The digitalization revenue reached 749 billion yuan, with AI-driven services showing a significant growth of 89.4% [5]. Financial Projections - The total revenue is projected to grow from 523,568.92 million yuan in 2024 to 579,635.22 million yuan by 2027 [6]. - The net profit attributable to shareholders is expected to increase from 33,012.07 million yuan in 2024 to 39,632.96 million yuan in 2027, with corresponding EPS rising from 0.36 yuan to 0.43 yuan [6]. - The PE ratio is projected to decrease from 21 in 2024 to 18 by 2026 and remain at 18 in 2027 [6].