CLSA Cuts CHINA TELECOM TP to HKD5.2; 1H26 Results Disappoint
I'm LongbridgeAI, I can summarize articles.CLSA cut China Telecom's H-share target price to HKD5.2 from HKD6 and maintained an Outperform rating, citing disappointing 1H26 results with revenue down 4% YoY and net profit falling 15.8%. While intelligent businesses grew 7.1%, higher capex and mature market pressures impacted performance. The broker lowered 2026-28 profit forecasts by 20-21% and noted interim DPS declined 8.8% despite a higher payout ratio.
CLSA issued a report on CHINA TELECOM (00728.HK) +0.100 (+2.114%) Short selling $44.69M; Ratio 13.799% , of which results for 1H26 were disappointing. Total revenue fell 4% YoY to RMB260.47 billion, while net profit declined 15.8% YoY to RMB19.4 billion, dented by mature mobile and fixed-line markets as well as the increase in VAT rates.
The report said intelligent businesses, including computing power, models and applications, became a new growth driver, rising 7.1% YoY to RMB31.1 billion and accounting for 12% of total revenue, but requiring higher capex. Interim DPS was RMB0.1606, down 8.8% YoY, despite the payout ratio rising to 75%.
The broker lowered its 2026-28 consensus net profit forecasts by 20-21%, and cut the H-share TP to HKD5.2 from HKD6, implying a dividend yield of about 5%. It maintained the Outperform rating. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.)