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<Research>Citi Rates CHINA TELECOM as Buy; 1Q26 EBITDA & NP Beat
Recommend
17
Positive
18
Negative
23
CHINA TELECOM (00728.HK)'s 1Q26 total revenue dropped by 2.6% YoY to RMB132 billion, missing market expectations, according to a report from Citi. Of which, service revenue fell by 1.6% YoY to RMB122.7 billion, also below expectations.

During the period, CHINA TELECOM also saw operating expenses decrease by 0.7% YoY to RMB123.8 billion, EBITDA decline by 7.7% YoY to RMB33.9 billion, and EBITDA margin slip by 1.4 ppts YoY to 25.7%.

Citi reiterated a Buy rating on CHINA TELECOM, with a target price of HKD7.1.
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