Bank of America Securities: First Pay for China Telecom (00728) “Buy” Rating H Shares Target Price HK$6

The Zhitong Finance App learned that Bank of America Securities released a research report stating that it covered China Telecom (00728) for the first time and gave it a “buy” rating. The target price for H shares was HK$6. The bank believes that China Telecom is a high-quality and enterprise-focused telecom operator in China, serving 442 million mobile users and 201 million broadband customers.

Bank of America Securities is optimistic about China Telecom's stable ARPU, high-quality communications services with strong monetization capabilities for corporate customers, and industry-leading cloud and AI data centers, and believes that AI platforms and applications will support the company's rapid profit growth. The bank believes that China Telecom's H share valuation is attractive. It expects a compound annual growth rate of 5.3% of earnings per share from 2026 to 2028, forecast earnings per share of 0.318 yuan in 2026, and an estimated dividend rate of 75%.