On June 30, China Telecom fell 3.19% in regular trading, trading at HK$4.25/share, with turnover of HK$296 million. The decline was primarily triggered by Goldman Sachs downgrading the stock's rating from \"Neutral\" to \"Sell\" on June 26, slashing its 12-month target price from HK$6 to HK$4.2.
Goldman Sachs cut its earnings forecasts for China Telecom by 13%, 25%, and 26% for FY2026 through FY2028 respectively, citing weak 5G service consumption, slower base station deployment, and the VAT rate increase from 6% to 9% effective January. While the bank acknowledged AI Token subscription plans could boost ARPU, it deemed near-term headwinds more material.
Adding to selling pressure, Ping An Asset Management reduced its holdings by approximately 16.59 million shares on June 24 at HK$4.30 per share, following an earlier disposal of 9.38 million shares by China Ping An Insurance on June 16. The broader integrated telecom sector declined in tandem, with China Unicom falling 3.78%, PCCW down 1.65%, HKT-SS down 1.19%, and China Tower down 1.01%, reflecting collective valuation reassessment pressure across the industry.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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