Bank of America Securities published a report. It initially gave China Telecom H shares a “buy” rating with a target price of HK$6; at the same time, it gave China Telecom A shares a “neutral” rating for the first time, with a target price of 7.2 yuan. The bank pointed out that China Telecom's H share valuation is attractive, while A shares currently have a 67% premium over H shares, which is higher than the average of 40% over the past year. The bank calculates the target price of H shares based on cash flow discounts and the average value multiples of corporate value, while the target price of A shares is estimated based on an A/H premium of 40%. The bank believes that China Telecom is a high-quality telecom provider focusing on enterprise customers, leading the cloud business and integrating an AI ecosystem. As of June 2026, it has 442 million mobile users and 201 million broadband users. Mobile and home ARPU is resilient, has excellent high-end integration and enterprise monetization capabilities, and provides natural distribution channels for cloud, cybersecurity and AI services. During the period, the Group had 118.8 EFLOPS computing power and 8 gigawatts of power capacity, which can benefit from increased demand for cloud and AI infrastructure. The bank predicts that the Group's profit per share compound annual growth rate from 2026 to 28 will be 5.3%, with a dividend payout ratio of 75%.

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