China Telecom Corporation, who has been weakening all the way after the break, hovered around a 1 per cent decline in early trading and suddenly pulled higher in late trading, rising 4.26 per cent to 4.41 yuan per share at the close, with a total market capitalization of 403.5 billion yuan.

At today's closing price, China Telecom Corporation seems to be "just around the corner" from returning to the offering price of Rmb4.53, with a difference of less than 3 per cent.

On the evening of October 22nd, China Telecom Corporation revealed that the net profit in the third quarter was 5.58 billion yuan, up 17.4 percent from the same period last year, while that in the first three quarters was 23.327 billion yuan, up 24.7 percent from the same period last year. According to the semi-annual report data, net profit fell 51% in the third quarter compared with the previous quarter.

During the reporting period, the company's mobile communications service revenue was 140.528 billion yuan, an increase of 6.3 percent over the same period last year, with a net increase of 18.64 million mobile users, continuing to take the lead in the industry, reaching 370 million, and 5G package users increased by 69.04 million to 156 million.

At the same time, the company's fixed network and smart family service income reached 85.498 billion yuan, an increase of 4.7% over the same period last year, a net increase of 9.11 million cable broadband users to 168 million, and broadband access revenue reached 56.896 billion yuan, an increase of 6.8% over the same period last year. The company's industrial digital business maintained rapid growth, with revenue reaching 74.09 billion yuan, an increase of 16.8% over the same period last year.

In comparison, China Mobile Limited's net profit in the first three quarters was 87.2 billion yuan, an increase of 6.9% over the same period last year. In the same period, China Unicom returned to his mother's net profit of 5.676 billion yuan, up 18.65% from the same period last year. China Mobile Limited's "Big Brother" throne is still solid.

In the number of mobile 5G package customers, China Mobile Limited ranks first with 331 million households, telecom 370 million households and China Unicom only 137 million households. However, China Unicom 5G package has the highest penetration rate of 43%.

Tianfeng Securities Research report pointed out that the company's telecom operation C-end business fundamentals have improved in an all-round way, ARPU value has rebounded steadily, and 5G penetration continues to grow. At the same time, China Telecom Corporation leads the world in public cloud business, taking full advantage of network resources, technology reserve, talent team, data security and other core advantages in industrial digitization and 5G applications to promote the continuous and accelerated growth of B-end business. It is estimated that the return net profit of the company from 2021 to 2023 will be 262,304,35.4 billion yuan respectively, and the growth rate of income and profit will maintain double-digit growth, corresponding to 26 times in 21 years and 16 times in 22 years. With reference to the global operator PB-ROE, as well as the dividend discount absolute valuation, the reasonable PB is about 1.1x, corresponding to the A share price of Rmb5.06, covering the "overweight" rating for the first time.