BOC International has issued a research report reiterating its "Buy" rating on CHINA TELECOM (00728), while reducing its target price from HK$9.84 to HK$7.85. The firm continues to regard the company as its top pick among Chinese telecommunications operators, citing attractive valuation due to improved earnings visibility and a solid commitment to shareholder returns.

The company's profit increased by 0.5% year-on-year last year, slightly below expectations, with service revenue growing only 0.7% year-on-year. Capital expenditure declined by 5.4% last year, with the investment structure shifting more towards infrastructure. Although the company faces challenges from an increase in value-added tax, management remains confident in driving revenue and profit growth this year through initiatives in Token, intelligent computing centers, and cloud security services.