UBS: Maintain"Buy" rating on China Telecom (00728.HK) and lower target price to 6.6 Hong Kong dollars.

According to the information obtained by the Wise Finance APP, UBS released a research report stating that China Telecom (00728.HK) service revenue in the first quarter of this year increased by 0.3% year-on-year to 124.7 billion yuan, which was 4% lower than market expectations. This was mainly due to macro headwinds causing a slowdown in enterprise business, and the management had previously indicated that they would selectively control the profitability of enterprise projects. UBS lowered China Telecom's service revenue and net profit forecast for 2022 to 2027 by 2% to 8%, reflecting a slowdown in enterprise business growth and increased depreciation growth. The target price was lowered from 6.8 Hong Kong dollars to 6.6 Hong Kong dollars, and the "Buy" rating was maintained.