Morgan Stanley has released a research report indicating that CHINA TELECOM's (00728) service revenue for the fourth quarter of last year was flat year-on-year at RMB 119 billion, which was 0.7% lower than the bank's forecast. EBITDA decreased by 5.3% year-on-year to RMB 28 billion, falling 8.2% short of expectations, primarily due to revenue underperformance. Net profit declined by 35% year-on-year to RMB 2.4 billion, which was 36% below expectations. For the full year, the dividend per share increased by 4.7% year-on-year to HKD 0.272, with a payout ratio of approximately 75%. The firm maintained its "Equal-Weight" rating on CHINA TELECOM with a target price of HKD 5.5. Management has guided for stable growth in service revenue, EBITDA, and net profit for the current year, excluding the impact of value-added tax. Capital expenditure is expected to decrease by 9.2% year-on-year to RMB 73 billion, although spending on computing power is projected to increase. The group views tokens as a major future growth driver, benefiting from its robust AIDC infrastructure and computing capabilities. Last year, token consumption on its platform reached 1.2 trillion units.