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<Research>Jefferies Adjusts TPs for CN Telecom-related Stocks; Top Pick CHINA MOBILE (00941.HK)
Recommend 63 Positive 91 Negative 67 |
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Jefferies released a research report remaining bullish on Chinese telecoms on their benefits from re-acceleration growth in cloud/ IDC and lower AI costs. Chinese telecom-related stocks have risen 9% in the DeepSeek-driven rebound, compared to a 27% incline in the ChatGPT rally in 1Q23, according to the report. CHINA TELECOM (00728.HK) led both uptrends, 24% currently and 26% during the ChatGPT uptrend, probably because it has the largest cloud and IDC business among the three telecoms. In terms of PE ratio and dividend yield, after the recent rebound, Jefferies believed that CHINA MOBILE (00941.HK) and CHINA UNICOM (00762.HK) are now more attractively valued than CHINA TELECOM. Therefore, the broker continued to list CHINA MOBILE as its top pick. Jefferies added that the upcoming results from Chinese telecom-related stocks are likely to be weak, but guidance and dividend will be key. The broker cut its 4Q24 forecasts for all 5 stocks due to slower demand. Its order of preference is CHINA MOBILE → CHINA UNICOM → CHINACOMSERVICE (00552.HK) → CHINA TELECOM → CHINA TOWER (00788.HK). The latest ratings and target prices of the sector are listed in a separate table. AAStocks Financial News |
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