questblockchain| Guotai Junan: Give China Telecom a "buy" rating target price of HK$5

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,questblockchainThe Group maintains a target price of HK$5 for H shares with a "Buy" rating due to the steady improvement of its corporate governance and the opportunities brought by the rapid development of its cloud business.

According to the report, China Telecom's service revenue and net profit in the first quarter rose 5% and 7% year-on-year respectivelyquestblockchain.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.