Morgan Stanley published a report. In the context of state-owned enterprise reform, increasing shareholder returns is a long-term trend. The three major telecom companies in the mainland will maintain healthy growth this year. Telecom companies, on the other hand, are on track to achieve their goal of saving capital expenses. Their new technology is also getting a lot of attention. The bank maintained the “gain” rating of the three major telecommunications companies, with China Telecom, China Mobile, and China Unicom in order of preference.
According to the bank, with the support of the State Assets Administration Commission, it has seen telecommunications companies actively manage market capitalization and increase shareholder returns. At the same time, telecom operators have maintained healthy fundamental growth, which is the core of market value management. Other aspects of market value management include more dialogue with the market and the establishment of a dedicated market value management team. According to Daimo, the three major telecom companies indicate that capital expenditure will drop by 3 to 12% year-on-year this year. The bank predicts that the total capital expenditure of the three major telecom companies will drop 6% year-on-year this year, and the capital expenditure ratio will drop to 18.9% from 21.2% last year.