Core Viewpoint - China Mobile announced the exercise of conversion rights to convert its holdings of SPDB A-share convertible bonds into approximately 29,300 shares of SPDB at a conversion price of RMB 12.51 per share, which is approximately HKD 13.71 [1] Group 1: Conversion Details - The total face value of the convertible bonds being converted is RMB 366,000 (approximately HKD 401,100) [1] - Prior to the conversion, China Mobile held a total of 6.053 billion SPDB A-shares, accounting for approximately 18.18% of SPDB's issued share capital [1] - After the conversion, the total number of SPDB A-shares held by China Mobile will remain at 6.053 billion, still representing approximately 18.18% of the enlarged issued share capital of SPDB [1] Group 2: Remaining Holdings and Intentions - Following the conversion, China Mobile will still hold SPDB A-share convertible bonds with a total face value of RMB 95.604 million (approximately HKD 105 million) [1] - These remaining convertible bonds are set to mature on October 27, 2025, and the company has no intention to exercise the related conversion rights [1] Group 3: Strategic Implications - The conversion allows China Mobile to subscribe to SPDB A-shares at a price comparable to market trading prices, benefiting SPDB in supplementing its core Tier 1 capital and enhancing its capital strength and risk resilience [1] - The board believes that the terms and conditions of the conversion are fair and reasonable, aligning with the overall interests of the company and its shareholders [1]

Core Viewpoint - The market is currently in a wait-and-see mode regarding the outcomes of the US-China trade negotiations and the upcoming meeting between the two presidents, which is expected to significantly influence future market trends [1] Market Sentiment - The meeting between the two leaders is anticipated to have a notable impact on market direction, with the Hang Seng Index expected to find substantial support around the 25,200 points level [1] - A positive outcome from the negotiations could lead to the index potentially reaching new highs for the year [1] Trading Volume and Trends - Current events are limiting market movement, resulting in low trading volumes, but a clear direction is expected to emerge following the announcement of the negotiation results, which will be crucial for Hong Kong stock performance in November [1] Economic Indicators - The expectation is that a certain level of agreement will be reached, although resolving all issues between the US and China will take time [1] - The Federal Reserve's recent interest rate cuts are factored into the market, and while there is speculation about Hong Kong following suit, the ultimate performance of the Hang Seng Index will depend on the progress of US-China negotiations [1] Investment Recommendations - It is suggested to consider high-dividend stocks, particularly Chinese telecom companies with growth prospects and oil stocks that have attracted ongoing interest from investors [2] - For those interested in technology stocks, it is advised to wait for the results of the US-China negotiations before making any investments [2]

Group 1 - The Central Commission for Discipline Inspection and the National Supervisory Commission reported on October 27 that Guo Jianli, former member of the Party Committee and Vice General Manager of China Unicom Beijing Branch, is under investigation for serious violations of discipline and law [1] - Guo Jianli is currently undergoing disciplinary review by the Central Commission for Discipline Inspection and the National Supervisory Commission stationed at China Unicom, as well as an investigation by the Jining Municipal Supervisory Committee in Shandong Province [1]

（中央纪委国家监委驻中国联通纪检监察组、山东省纪委监委） 中央纪委国家监委网站讯 据中央纪委国家监委驻中国联通纪检监察组、山东省纪委监委消息：中国联 通北京市分公司原党委委员、副总经理郭建利涉嫌严重违纪违法，目前正接受中央纪委国家监委驻中国 联通纪检监察组纪律审查和山东省济宁市监察委员会监察调查。 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's operating performance remains stable, with a steady improvement in profitability. For the first three quarters of 2025, the company achieved revenue of 394.3 billion yuan, a year-on-year increase of 0.6%. Service revenue reached 366.3 billion yuan, up 0.9%, and net profit attributable to shareholders was 30.8 billion yuan, growing by 5.0% [2][12]. - The basic business is developing steadily, with a continuous increase in 5G network penetration. The number of 5G users reached 290 million, with a penetration rate of 66.9%. Mobile internet traffic increased by 16.9% year-on-year, and the average data usage per user reached 22.3GB, up 11.4% [12]. - New strategic businesses are expanding in scale, accelerating the cultivation of new growth drivers. The company's IDC revenue reached 27.5 billion yuan, growing by 9.1%, while intelligent revenue increased by 62.3% [12]. - Cost control has been effective, contributing positively to profit growth. Operating expenses for the first three quarters were 359.3 billion yuan, a year-on-year increase of 0.3%, while network operation costs decreased by 3.0% [12]. Summary by Sections Financial Performance - In the first three quarters of 2025, the company achieved total revenue of 394.3 billion yuan, with a net profit of 30.8 billion yuan, reflecting a year-on-year growth of 5.0% [2][6]. - The EBITDA for the same period was 115.6 billion yuan, an increase of 4.2% [12]. Business Development - The basic business is growing steadily, with a focus on enhancing customer service and product offerings. The 5G user base and mobile internet traffic are key indicators of this growth [12]. - The new strategic business areas are showing significant growth, particularly in intelligent services and cloud solutions, indicating a shift towards high-quality development [12]. Cost Management - The company has successfully managed costs, with a slight increase in operating expenses but a notable decrease in network operation costs, showcasing effective resource utilization [12].

Core Insights - Digital technology is rapidly integrating into various industries, becoming a core driver for industrial upgrades [1] - Traditional management models in water resources are insufficient for the demands of precision and efficiency, necessitating an information technology transformation [1] Group 1: Technological Implementation - Shandong Mobile Qingdao Branch is taking on the responsibility of a central enterprise by developing a smart water conservancy solution that integrates precise monitoring, intelligent early warning, and efficient scheduling [1] - The company has deployed over 200 IoT sensors in key areas of the Noceng Reservoir to collect real-time data on water levels, water quality, rainfall, and flow speed [1] - AI algorithms are utilized for intelligent analysis of video monitoring, enabling automatic warnings for safety hazards such as exceeding water levels and unauthorized intrusions [1] Group 2: Benefits and Outcomes - The digital upgrade in water resource management has led to the efficient allocation and utilization of water resources, with an expected annual saving of over 5 million cubic meters of irrigation water and a reduction in agricultural water costs by over 8 million yuan [2] - The safety compliance rate of water conservancy facilities has reached 100%, effectively safeguarding the lives and property of over 300,000 residents in 15 towns and streets [2] - The company plans to continue leveraging its technological advantages to promote smart water conservancy construction and enhance water resource protection and safety [2]

Core Viewpoint - China Mobile announced that Guangdong Mobile will exercise its conversion rights to convert a total face value of RMB 1.484 billion of SPDB A-share convertible bonds into approximately 119 million shares of SPDB A-shares at a conversion price of RMB 12.51 per share, effective on October 24, 2025 [1] Group 1 - The total face value of the convertible bonds being converted is RMB 1.484 billion [1] - The conversion price set for the SPDB A-shares is RMB 12.51 per share [1] - The number of SPDB A-shares to be converted is approximately 119 million shares, subject to potential variations due to settlement and clearing reasons [1]

Investment Rating - The report maintains a "Buy" rating for China Unicom, with a target price of 7.83 CNY [5][12]. Core Insights - China Unicom's performance in the first three quarters of 2025 showed steady growth, with total revenue reaching 293 billion CNY, a year-on-year increase of 1.0%. The net profit attributable to the parent company was 7.623 billion CNY, reflecting a year-on-year growth of 10.9% [2][12]. - The company's digital intelligence business is a strong growth driver, with significant revenue contributions from its cloud services and data center operations. The cloud segment generated 52.9 billion CNY, while the data center business achieved 21.4 billion CNY, marking an 8.9% increase year-on-year [12]. - The report highlights the solid foundation of the connectivity business, with mobile users reaching 356 million, adding 12.48 million users, and fixed broadband users reaching 129 million, adding 6.79 million users, both achieving record net additions for the same period in recent years [12]. Financial Summary - Total revenue projections for China Unicom are as follows: 372.597 billion CNY for 2023, 389.589 billion CNY for 2024, and 402.638 billion CNY for 2025, with growth rates of 5.0%, 4.6%, and 3.3% respectively [4][13]. - Net profit attributable to the parent company is projected to be 8.173 billion CNY for 2023, increasing to 9.030 billion CNY in 2024 and 9.694 billion CNY in 2025, with growth rates of 12.0%, 10.5%, and 7.4% respectively [4][13]. - The report indicates a decrease in capital expenditure by 15% year-on-year, with a focus on high-value areas such as computing power networks [12]. Market Position - China Unicom's current stock price is 5.55 CNY, with a market capitalization of 173.518 billion CNY. The stock has a price-to-book ratio of 1.01 and a dividend yield of 2.85% [6][14]. - The company has a solid financial position, with total assets of 662.845 billion CNY and total liabilities of 304.910 billion CNY, resulting in a debt-to-equity ratio of approximately 46% [13].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 108.78 CNY [5][11]. Core Insights - The company has maintained a prosperous business environment in the first three quarters of 2025, benefiting from the rapid development of data communication switches [2][11]. - The revenue for the first three quarters of 2025 reached 10.68 billion CNY, representing a year-on-year increase of 27.50%, while the net profit attributable to the parent company was 680 million CNY, up 65.26% year-on-year [11]. - The company has implemented a new equity incentive plan, aiming for cumulative growth rates of no less than 25%, 38%, and 46% for the years 2025 to 2027, which is expected to further stimulate the company's potential [11]. Financial Summary - Total revenue projections for 2025-2027 are 14.66 billion CNY, 17.86 billion CNY, and 21.27 billion CNY, respectively, with corresponding net profits of 1.08 billion CNY, 1.59 billion CNY, and 2.13 billion CNY [3][11]. - The earnings per share (EPS) are forecasted to be 1.36 CNY, 2.00 CNY, and 2.67 CNY for the years 2025, 2026, and 2027, respectively [3][11]. - The company’s net profit margin is projected to improve significantly, with a return on equity (ROE) expected to reach 34.8% by 2027 [3][11]. Market Data - The current stock price is 76.71 CNY, with a market capitalization of 61.02 billion CNY [6][11]. - The stock has a 52-week price range of 48.37 CNY to 103.61 CNY [6]. - The price-to-earnings (P/E) ratio is projected to decrease from 153.66 in 2023 to 28.98 by 2027, indicating a more favorable valuation over time [3][11].

Investment Rating - The report maintains a rating of "Accumulate" for China Telecom with a target price of 9.07 CNY [6][12]. Core Insights - For the first three quarters of 2025, China Telecom reported revenue of 394.3 billion CNY, a year-on-year increase of 0.6%, with service revenue at 366.3 billion CNY, up 0.9%. The net profit attributable to shareholders was 30.8 billion CNY, reflecting a 5.0% increase, which outpaced revenue growth [2][12]. - The report highlights strong performance in new business segments, with 5G network users reaching 290 million, a penetration rate of 66.9%. IDC revenue grew by 9.1% to 27.5 billion CNY, while intelligent revenue surged by 62.3% [12]. Financial Summary - Total revenue projections for 2025-2027 are 538.5 billion CNY, 553.5 billion CNY, and 568.8 billion CNY respectively, with net profits expected to be 34.7 billion CNY, 36.3 billion CNY, and 37.7 billion CNY [4][12]. - The financial metrics indicate a steady increase in net profit margins and return on equity, with a projected net profit margin of 6.4% for 2025 [4][12].