Citigroup has released a research report indicating that CHINA TELECOM's (00728) total revenue for the first quarter of 2026 fell by 2.6% year-on-year to RMB 1,320 billion, falling short of market expectations. Service revenue for the period declined by 1.6% year-on-year to RMB 1,227 billion, also missing expectations. Operating expenses during the quarter decreased by 0.7% year-on-year to RMB 1,238 billion. First-quarter EBITDA dropped by 7.7% year-on-year to RMB 339 billion, with an EBITDA margin of 25.7%, down 1.4 percentage points from the previous year. The firm reaffirmed its "Buy" rating on CHINA TELECOM with a target price of HK$7.1.
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