Core Viewpoint - Morgan Stanley's research report indicates that the overall net profit of China's three major telecom operators recorded an approximately 5% year-on-year increase in the first half of this year, primarily supported by cost optimization measures [1] Group 1: Financial Performance - The three major telecom operators' operating expenses, capital expenditures, and depreciation have decreased, contributing to the profit growth [1] - The estimated dividend yield for the H-shares of the three telecom operators remains attractive at 5% to 6%, with China Mobile having the highest yield at 6% [1] Group 2: Cloud Revenue Trends - The year-on-year growth of cloud revenue for the three telecom operators has significantly slowed from an estimated 17% to 35% in 2024 to 5% to 10% in the first half of this year [1] - This slowdown is attributed to the increasing market share of internet companies and a deceleration in the digitalization demands of state-owned enterprises [1] Group 3: Investment Outlook - Morgan Stanley maintains a positive outlook on China Mobile, China Telecom, and China Unicom, giving them an "overweight" rating due to strong dividend returns, profit growth, and potential upside in cloud revenue [1] - China Telecom is highlighted as the preferred stock due to its highest proportion of cloud business and the resilience of its traditional mobile and broadband services [1]