JP Morgan: Recommends buying the three major mainland telecommunications stocks, with China Telecom Corporation (00728) being the top choice. Target price is 7.5 Hong Kong dollars.

J.P. Morgan released a research report stating that they are bullish on three major telecommunications companies, citing attractive shareholder returns, healthy profit growth, and potential cloud service revenue growth brought about by AI. The top pick is China Telecom Corporation (00728) due to its largest exposure to cloud business and most resilient traditional mobile and broadband services, with a target price of HK$7.5. As for China Mobile Limited (00941) and China United Network Communications (00762), their target prices are HK$110 and HK$12 respectively, both with a "hold" rating. In the past three months, the stock prices of the three major mainland telecom companies, including China Mobile Limited, China Telecom Corporation, and China United Network Communications, have all underperformed the Hang Seng Index. The bank believes that the current dividend yields of the three major telecom companies are attractive, with expected full-year dividend yields of 6.3% for China Mobile, 5.4% for China Telecom, and 5.6% for China United Network Communications. Meanwhile, the slower growth in traditional telecom service revenue in the third quarter compared to the second quarter has been reflected in the recent stock price weakness, and they recommend investors to take advantage of the opportunity to acquire shares while they are undervalued.