＜Research＞M Stanley Estimates 3 CN Telecoms to Post Slower 2Q Rev. Hike, but Profit/ Div. Growth Stable

　　Morgan Stanley measured the growth of China's telecom service revenue to ease further to 1.9% in 2Q24, and that the three major telecom operators of China will maintain stable dividend payouts. The broker favored their solid profitability and favorable capex down cycle, with attractive valuation of 6-7% 2024E dividend yields.

　　Morgan Stanley predicted that service revenue growth for CHINA MOBILE (00941.HK) -0.200 (-0.273%) Short selling $85.04M; Ratio 15.475% , CHINA TELECOM (00728.HK) -0.030 (-0.648%) Short selling $6.93M; Ratio 10.824% and CHINA UNICOM (00762.HK) -0.190 (-2.786%) Short selling $21.69M; Ratio 11.252% in 2Q24 will be 0.9%, 3.8% and 2% respectively, all of which will slow down QoQ. Net profit growth was forecast to be 4.8%, 6% and 10.9% respectively.

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　　In terms of dividends, the broker estimated that China Mobile's interim dividend payout ratio will be 65%, China Telecom's will be 70%, and China Unicom's will be 55%. Since no major changes in dividend policy are expected, these payout ratios are mostly in line with the final payout in 2023. At the same time, CHINA TOWER (00788.HK) -0.020 (-2.062%) Short selling $8.44M; Ratio 10.026% was expected to pay an interim dividend for the first time, at 75% of distributable profit, which was also consistent with final payout in 2023.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 12:25.)

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