Lyon: Raising the target prices of China's top three telecommunications carriers, China Mobile (00941) is still the first choice

The Zhitong Finance App learned that Lyon released a research report saying that it predicts that the performance of China's top three telecom companies will be weak in the second half of last year, due to the decline in industrial Internet revenue growth from double digits to the number of units. The bank pointed out that the Chinese government and enterprises are more cautious about IT spending, and telecom operators are also more selective about cloud projects to improve average earnings and cash flow. At the same time, the three major telecommunications companies cut capital expenses and extended the depreciation period for 5G base stations to increase profits and increase dividends.

As the downward trend in capital expenditure continues, Lyon raised the target prices for the three major telecom companies. Among them, China Mobile (00941) is still the first choice because its dividend ratio is expected to reach 6% and 7% last year and this year. However, during the recent rise in the AI market, China Telecom (00728) and China Unicom (00762) dividend rates fell to 5% and 6% this year and next, and telecom companies may not be able to immediately benefit from the AI boom.

The specific ratings and target prices are as follows: