Core Viewpoint - CITIC International Telecommunications (01883.HK) has announced the renewal of a financial services framework agreement with CITIC Bank, CITIC Bank International, CITIC Finance, and CITIC Finance International, covering deposit, settlement, and credit services until 2025 [1] Group 1: Agreement Details - The renewed agreement will not exceed three years in duration [1] - Deposit services will constitute non-exempt continuing connected transactions, requiring compliance with relevant listing rules [1] - Settlement and credit services are exempt from these requirements [1]

Core Viewpoint - UBS reports that the potential revocation of telecommunications service licenses for Hong Kong Telecom-SS (06823) by the FCC will have a limited impact on the company's profitability due to its minimal exposure to the U.S. market, which accounts for less than 1% of total revenue [1] Group 1 - The U.S. market represents less than 1% of Hong Kong Telecom's total revenue, and the profitability of this business segment is relatively low [1] - UBS forecasts an attractive dividend yield of approximately 7.6% for 2026, which could support the stock price amid rising regulatory uncertainties [1] - UBS maintains a "Buy" rating for Hong Kong Telecom with a target price of HKD 13.4 [1]

Core Viewpoint - UBS reports that the potential revocation of telecommunications service licenses for Hong Kong Telecom-SS (06823) by the FCC will have a limited impact on the company's profitability due to its minimal exposure to the U.S. market, which accounts for less than 1% of total revenue [1] Summary by Category - **Regulatory Impact** - The FCC's proposed ban is not expected to significantly affect Hong Kong Telecom's earnings as the U.S. market represents a small portion of its overall revenue [1] - **Financial Metrics** - The business in the U.S. has a relatively low profit margin, further mitigating the potential impact of the regulatory changes [1] - **Investment Outlook** - UBS forecasts an attractive dividend yield of approximately 7.6% for 2026, which could support the stock price amid rising regulatory uncertainties [1] - The firm maintains a "Buy" rating on Hong Kong Telecom with a target price of HKD 13.4 [1]

Core Viewpoint - The potential ban by the FCC on Hong Kong Telecom's subsidiary providing telecommunications services in the U.S. is expected to have a limited impact on the company's profitability due to its minimal exposure to the U.S. market [1] Summary by Category Financial Impact - The U.S. market accounts for less than 1% of the company's total revenue, and the profit margin from this business is relatively low [1] - UBS forecasts an attractive dividend yield of approximately 7.6% for 2026, which could support the stock price amid rising regulatory uncertainty [1] Investment Rating - UBS maintains a "Buy" rating for Hong Kong Telecom with a target price of HKD 13.4 [1]

Market Performance - The Hong Kong stock market indices experienced significant gains, with the Hang Seng Tech Index rising by 2.24%, reaching a new high for the period [1] - In September, the Hang Seng Tech Index accumulated a nearly 14% increase, while the Hang Seng Index and the National Enterprises Index rose by 7.09% and 6.79%, respectively [1][2] Sector Highlights - Major technology stocks saw collective gains, with Kuaishou leading with a rise of over 7%, followed by Alibaba and NetEase with increases of 2% [2][4] - Semiconductor stocks remained strong, with Huahong Semiconductor surging nearly 11% to set a new high [2][8] - Apple-related stocks also saw gains as Apple reportedly notified its supply chain to increase production capacity [2][9] Gold and Copper Stocks - Gold stocks rallied, with Zijin Mining International soaring over 68%, and other gold-related companies also showing strong performance [6] - Copper stocks followed suit, with China Molybdenum rising by 11.84% and Jiangxi Copper gaining over 8% [7] Biopharmaceutical Sector - The biopharmaceutical sector showed positive movement, with WuXi AppTec increasing by over 8% and other companies like Zai Lab and BeiGene also experiencing gains [12][13] Airline Industry - Airline stocks generally rose, with China Eastern Airlines up by 6.73% and both China Southern Airlines and Air China increasing by over 4% [11] - Citic Securities noted strong demand for air travel during the upcoming holidays, suggesting potential for positive performance in the sector [11] Oil and Gas Sector - Oil stocks collectively declined, with China Petroleum falling by 2.75% and other major oil companies also experiencing losses [14] - Reports indicated that OPEC+ plans to increase oil production in November, contributing to the downward pressure on oil prices [14] Gaming and Telecom Stocks - Casino and gaming stocks mostly fell, with Sands China down by 2.25% and other major gaming companies following suit [15] - Telecom stocks also saw declines, with China Telecom and China Mobile both experiencing slight drops [17] Capital Inflows - Southbound capital saw a net inflow of HKD 15.48 billion, indicating strong investor interest in the Hong Kong market [19] Future Outlook - Everbright Securities highlighted the strong overall profitability of Hong Kong stocks, particularly in sectors like internet, new consumption, and innovative pharmaceuticals, suggesting that despite recent gains, valuations remain low and long-term investment potential is high [19]

Core Viewpoint - Hong Kong Broadband Network (HKBN) plans to allocate existing shares to China Mobile Hong Kong, indicating a strategic partnership and potential financial implications for both companies [1] Company Summary - HKBN is engaging in a share allocation to China Mobile Hong Kong, which may enhance its market position and financial stability [1] - The share allocation could signify a strengthening of ties between HKBN and China Mobile, potentially leading to collaborative opportunities in the telecommunications sector [1] Industry Summary - The telecommunications industry in Hong Kong may see increased consolidation and partnerships as companies seek to enhance their competitive edge through strategic alliances [1] - This move reflects broader trends in the industry where companies are looking to leverage partnerships to improve service offerings and market reach [1]

Core Viewpoint - The company, SmarTone Telecommunications Holdings Limited (00315), announced a final dividend of HKD 0.175 per share to be distributed on November 21, 2025 [1] Company Summary - SmarTone Telecommunications Holdings Limited will distribute a final dividend of HKD 0.175 per share [1]

Group 1: Company Research - China Mobile (941, Buy): Achieved revenue of CNY 543.8 billion in H1 2025, with service revenue at CNY 467.0 billion, a YoY increase of 0.7%[6] - Huahong Semiconductor (1347, Buy): Revenue growth driven by demand, with embedded non-volatile memory revenue up 2.9% YoY and power device revenue up 9.4% YoY[15] - AMD (Buy): Expected MI series sales of USD 8 billion this year, with Q3 revenue guidance exceeding expectations[25] Group 2: Financial Performance - China Mobile's net profit reached CNY 84.2 billion in H1 2025, a YoY increase of 5.0%[6] - Huahong Semiconductor's Q2 2025 revenue was USD 570 million, with a gross margin of 10.9%, above the expected range[20] - AMD's Q2 2025 revenue was USD 7.69 billion, a YoY increase of 31.7%, with a gross margin of 39.8%[25] Group 3: Market Outlook - China Mobile's target price raised to HKD 116, reflecting a 33% upside potential, supported by stable cash flow and dividend policy[9] - Huahong Semiconductor's target price increased to HKD 54, indicating a 22.73% upside, driven by stable demand and capacity expansion[20] - AMD's target price set at USD 200, with a projected revenue CAGR of 42.3% from 2025 to 2027[30]

Investment Rating - The report assigns a "Buy" rating for China Mobile with a target price of HKD 116, representing a potential upside of 33% from the current price of HKD 87 [2][6]. Core Insights - China Mobile's operating performance shows steady growth, with service revenue under pressure but profits exceeding expectations. In the first half of 2025, the company achieved operating revenue of CNY 543.8 billion, with service revenue at CNY 467.0 billion (YoY +0.7%). The net profit attributable to shareholders was CNY 84.2 billion (YoY +5.0%) [3][6]. - The company is focusing on value-driven operations to promote structural revenue growth. Personal market revenue was CNY 244.7 billion (YoY -4.1%), while household broadband customers reached 284 million, with a net increase of 6.23 million [6]. - The report highlights the continuous innovation and expansion into emerging businesses, with new market revenue reaching CNY 29.1 billion (YoY +9.3%) and international business revenue at CNY 14.0 billion (YoY +18.4%) [6]. Summary by Sections Financial Performance - In the first half of 2025, China Mobile's total connections reached 3.815 billion (YoY +8.9%), with digital transformation revenue at CNY 156.9 billion (YoY +6.6%), accounting for 33.6% of main business revenue [3][6]. - The EBITDA for the first half of 2025 was CNY 186.0 billion (YoY +2.0%), with an EBITDA margin of 39.8% (YoY +0.5pct) [3][6]. Future Projections - The report forecasts operating revenue to grow from CNY 1,009.3 billion in 2023 to CNY 1,088.8 billion by 2027, with a compound annual growth rate (CAGR) of approximately 1.7% [5][22]. - Net profit is projected to increase from CNY 131.8 billion in 2023 to CNY 161.8 billion by 2027, reflecting a steady growth trajectory [5][22]. Dividend Policy - The interim dividend for 2025 is set at HKD 2.75 per share (YoY +5.8%), with an increasing cash dividend payout ratio expected for the full year [3][6].

Market Performance - The Hang Seng Index closed up 0.92% at 24,733.45 points, while the Hang Seng Tech Index rose 1.55% to 5,481.25 points, and the National Enterprises Index increased by 1.01% to 8,893.48 points [1] - The main board recorded a trading volume exceeding 234.6 billion HKD, with a net outflow of over 18 billion HKD from the southbound Stock Connect [1] Sector Performance - Most sectors experienced gains, particularly technology, semiconductors, gold, and coal stocks [1] - Mixed performance was noted in banking, insurance, brokerage, real estate, and biomedicine sectors, while online retail, telecommunications services, and oil and gas production sectors generally declined [1] Individual Stock Movements - Notable stock movements included Shandong Gold up 10.70%, Zhaojin Mining up 7.70%, and Meituan up 0.65% [1] - Other significant movements included WuXi AppTec down 1.38%, SMIC up 2.90%, and China Shenhua up 4.36% [1] - Among the top three stocks by trading volume, Tencent Holdings rose 2.80% with a turnover exceeding 9.4 billion HKD, Alibaba fell 0.60% with a turnover over 5.8 billion HKD, and Xiaomi Group increased by 2.15% with a turnover exceeding 5.3 billion HKD [1]