Guotai Junan released a research report saying that China Telecom's (00728) profits grew steadily in the first quarter, and high-quality development continued to advance. Considering its profits and dividends,wwfarcadegameThe steady improvement of cloud business, and the rapid development of cloud businesswwfarcadegameThe Group maintains its target price of HK$5 for H shares and has a "Buy" rating.
According to the report, China Telecom's service revenue and net profit in the first quarter rose 5% and 7% year-on-year respectivelywwfarcadegame.7%, in line with market expectations. Due to the stable growth of its main business and good control of operating expenses, the report believes that the company's net profit will continue to grow steadily in the next few years. The company plans to increase the dividend payout ratio to more than 75% within three years starting in 2024. Therefore, it is believed that dividends will grow steadily in the next few years.
