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UBS published a report stating that China Telecom's service revenue in the second quarter reached 124.4 billion yuan, an increase of 2.1% compared to the same period last year. Thanks to effective cost controls, the EBITDA profit margin for the second quarter increased by 1 percentage point year-on-year. Net profit reached 14.2 billion yuan, a 7.1% increase from the same period last year, exceeding the bank and market forecasts of a 2% increase, and also surpassing China Mobile and China Unicom. The report points out that the most notable aspect of China Telecom's performance is the stable outlook for traditional telecom services. Despite facing macroeconomic challenges, the ARPU for mobile services in the first half of the year remained relatively stable at 46 yuan compared to the same period last year. Management expects traditional telecom revenue to maintain stable growth, and ARPU values to remain stable with the support of value-added services and AI upgrades. Assuming cost control improvements, the bank raised its net profit forecast for 2025 to 2028 by 0% to 2.5% and raised the target price from 6.8 Hong Kong dollars to 7.4 Hong Kong dollars, with a "Buy" rating.