<div id="readability-page-1"><div>HSBC Research issued a report reviewing the 1Q results of Chinese telecom stocks, noting that the increase in value-added tax led to a general decline in industry service revenue and net profit, although CHINA MOBILE (00941.HK) +0.350 (+0.417%) Short selling $151.58M; Ratio 11.975% demonstrated greater resilience than peers. CHINA MOBILEs 1Q service revenue fell 1.1% YoY, while EBITDA and net profit declined 4.9% and 4.2% respectively, in line with expectations. Net cash flow from operating activities surged 128% YoY, which the broker believes will provide more room to raise the dividend payout ratio.In contrast, CHINA TELECOM (00728.HK) +0.140 (+2.794%) Short selling $42.77M; Ratio 19.238% reported results below expectations, with service revenue, EBITDA and net profit falling 1.6%, 7.8% and 17.1% respectively. CHINA UNICOM (00762.HK) +0.060 (+0.826%) Short selling $9.90M; Ratio 21.744% delivered mixed results, with service revenue down 0.9%, slightly beating expectations, but EBITDA and net profit missing forecasts. CHINA TOWER (00788.HK) -0.050 (-0.448%) Short selling $5.65M; Ratio 15.880% recorded 1.5% revenue growth, supported by strong expansion in its Smart Connectivity and energy businesses; however, EBITDA fell 11.2%, below expectations, while net profit rose 28.8%, in line with forecasts.HSBC Research said it has adjusted ratings and TP for the relevant stocks. It maintained Buy on CHINA MOBILEs H shares and A shares, lowering the TP for its H shares from HKD95 to HKD94 and for its A shares from RMB112 to RMB111.The broker downgraded CHINA TELECOMs H shares and A shares from Buy to Hold, cutting the TP for its H shares from HKD5.9 to HKD5.6 and for its A shares from RMB6.7 to RMB6.3. It maintained Reduce on CHINA UNICOMs H shares and A shares, lowering the TP for its H shares from HKD6.7 to HKD6.5 and for its A shares from RMB4.2 to RMB4.1. CHINA TOWER was kept at Hold, with its TP slightly raised from HKD11.3 to HKD11.4. (ec/w)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-27 12:25.)</div>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</div>

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HSBC Research analyzed the 1Q results of Chinese telecom companies, noting a decline in service revenue and net profit due to increased value-added tax. CHINA MOBILE showed resilience with a smaller YoY decline in service revenue and a significant rise in operating cash flow, prompting a Buy rating. In contrast, CHINA TELECOM's results fell short of expectations, leading to a downgrade to Hold. CHINA UNICOM had mixed results, while CHINA TOWER saw revenue growth but missed EBITDA forecasts. HSBC adjusted target prices for these stocks accordingly.

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HSBC Research: Divergent 1Q Results for Chinese Telecoms; Favors CHINA MOBILE, Downgrades CHINA TELECOM to Hold