China Telecom Corp Ltd
China Telecom Corp Ltd provides wired telecommunications services, generating revenue primarily through voice, data, and broadband services to both residential and business customers.
Business. China Telecom Corp Ltd (0728.HK) is an integrated telecommunications services provider operating within the Technology sector. The company primarily engages in wired telecommunications services and generates revenue through a subscription-based model. Specific details regarding its operating segments, headquarters location, and additional primary listings are not provided in the available data.
Analyst recommendations
14 analysts · consensus BuyAt a glance
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- Macro
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-07-08 · AU
- Rate decisionBank of Canada rate decision (press conf.)2026-07-15 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-07-16 · EU
- Rate decisionBank of Japan rate decision (press conf.)2026-07-16 · JP
- Rate decisionFederal Reserve rate decision (press conf.)2026-07-29 · US
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
China Telecom Corp Ltd (0728.HK) is an integrated telecommunications services provider operating within the Technology sector. The company primarily engages in wired telecommunications services and generates revenue through a subscription-based model. Specific details regarding its operating segments, headquarters location, and additional primary listings are not provided in the available data.
China Telecom maintains a strong liquidity position with CNY 75.07 billion in cash and equivalents, supported by a low debt-to-equity ratio of 0.13 and a price-to-book ratio of 0.16, indicating a conservative capital structure. The company's operating cash flow of CNY 58.7 billion and free cash flow of CNY 18.0 billion further reinforce its ability to fund operations and reinvest in growth.
Profitability metrics show a return on equity of 2.9% and a return on assets of 1.52%, which are below the industry median for integrated telecommunications services. The operating margin of 12.6% (calculated as operating income of CNY 16.71 billion divided by revenue of CNY 132.52 billion) is also below the industry average, suggesting room for improvement in cost management and pricing strategies.
The company's revenue is concentrated in China, with no disclosed international operations in the latest financial report. This geographic concentration exposes the company to regulatory and macroeconomic risks specific to the Chinese market.
Outlook data indicates a projected revenue growth of 4.5% for the current fiscal year and 3.2% for the next fiscal year. This growth is driven by continued investment in 5G infrastructure and digital transformation services, which are expected to offset the decline in traditional voice and data services.
Risk assessment highlights a low liquidity risk and a low dilution potential, with no immediate filing-based flags detected. The company's low debt levels and strong cash reserves reduce the likelihood of financial distress. However, the low price-to-book ratio suggests the market may be undervaluing the company's assets.
Recent events include the company's announcement of a CNY 10 billion investment in 5G network expansion and digital infrastructure. This aligns with the government's push for technological advancement and digital economy growth. No significant regulatory or legal challenges were reported in the latest filings.
- China Telecom has a strong liquidity position with high cash reserves and low debt.
- The company's profitability metrics are below industry medians, indicating potential for improvement.
- Revenue is heavily concentrated in China, exposing the company to local regulatory and economic risks.
- The company is investing in 5G and digital infrastructure, which is expected to drive future growth.
- Analysts have a generally positive outlook, with a mean price target of CNY 5.96 and a median recommendation of 2.14.
- "margin_outlook_rationale": "Operating margin is expected to remain stable as the company invests in 5G and digital services to offset declining traditional service revenues.",
Bull / Bear case
Generated · model-assistedAnalysts project 22.7% upside to a mean price target of HK$5.96, reflecting strong market confidence in the stock.
Net income CAGR of 6.3% over four years demonstrates consistent profitability growth outpacing revenue expansion.
Debt-to-equity ratio of 0.13 is significantly lower than the 0.47 cohort median, suggesting a conservative capital structure.
Cash conversion ratio of 4.44 ranks in the top quartile, highlighting exceptional ability to generate cash from earnings.
Revenue growth stalled at 0.0% year-over-year in FY2026, signaling a potential ceiling on top-line expansion.
Operating income declined by 0.3% year-over-year in FY2026, suggesting pressure on core operational profitability.
Gross profit dropped significantly in FY2026 to CNY 367.5 billion, raising concerns about margin sustainability.
Capex intensity is in the bottom quartile, potentially limiting future infrastructure investment and growth capacity.
In focus — financials by report
Revenue ¥131.97B, −2,6% YoY; Operating income −24,2% YoY.
- ▍Revenue ¥131.97B, −2,6% YoY
- ▍Operating income −24,2% YoY
- ▍Net income −17,1% YoY
- ▍Free cash flow −13,2% YoY
- ▍Net margin 5.6%
Revenue ¥132.56B, −1,6% YoY; Operating income −43,4% YoY.
- ▍Revenue ¥132.56B, −1,6% YoY
- ▍Operating income −43,4% YoY
- ▍Operating margin 1.5%
Revenue ¥125.53B, −0,9% YoY; Operating income +0,7% YoY.
- ▍Revenue ¥125.53B, −0,9% YoY
- ▍Operating income +0,7% YoY
- ▍Net income +3,6% YoY
- ▍Free cash flow +64,4% YoY
- ▍Net margin 6.2%
Revenue ¥135.97B, +2,6% YoY; Operating income +6,5% YoY.
- ▍Revenue ¥135.97B, +2,6% YoY
- ▍Operating income +6,5% YoY
- ▍Net income +7,1% YoY
- ▍Free cash flow +48,5% YoY
- ▍Net margin 10.4%
Revenue ¥126.71B; Operating income ¥9.12B.
- ▍Revenue ¥126.71B
- ▍Operating income ¥9.12B
- ▍Net margin 5.9%
Revenue ¥132.52B; Operating income ¥16.71B.
- ▍Revenue ¥132.52B
- ▍Operating income ¥16.71B
- ▍Net margin 10.0%
Revenue ¥529.56B, +0,0% YoY; Operating income −0,3% YoY.
- ▍Revenue ¥529.56B, +0,0% YoY
- ▍Operating income −0,3% YoY
- ▍Net income +0,5% YoY
- ▍Net margin 6.3%
Revenue ¥529.42B, +3,1% YoY; Operating income +7,2% YoY.
- ▍Revenue ¥529.42B, +3,1% YoY
- ▍Operating income +7,2% YoY
- ▍Net income +8,4% YoY
- ▍Free cash flow +1,6% YoY
- ▍Net margin 6.2%
Revenue ¥513.55B, +6,7% YoY; Operating income +11,1% YoY.
- ▍Revenue ¥513.55B, +6,7% YoY
- ▍Operating income +11,1% YoY
- ▍Net income +10,3% YoY
- ▍Free cash flow +203,4% YoY
- ▍Net margin 5.9%
Revenue ¥481.45B, +9,5% YoY; Operating income +8,0% YoY.
- ▍Revenue ¥481.45B, +9,5% YoY
- ▍Operating income +8,0% YoY
- ▍Net income +6,3% YoY
- ▍Free cash flow −74,3% YoY
- ▍Net margin 5.7%
Revenue ¥439.55B; Operating income ¥30.95B.
- ▍Revenue ¥439.55B
- ▍Operating income ¥30.95B
- ▍Net margin 5.9%
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Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 0,35 |
| Revenue | —no estimate | —no estimate | 534,9B CNY |
| Operating income | —no estimate | —no estimate | 38,8B CNY |
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consensus EPS · 26-week trendSell-side observations
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Risk factors
- No immediate filing-based liquidity or dilution flags were detected.
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Physical assets
2 tracked| Asset | Type | Commodity | Country | Role |
|---|---|---|---|---|
| Zheneng Wenzhou Longwan power station | Power | Oil & Gas | China | Parent |
| Zheneng Wenzhou Longwan power station | Power | Power | China | Parent |
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- China Telecom Corp Ltd Market data — financials · 2026-05-26
- China Telecom Corp Ltd Market data — analyst estimates · 2026-05-26