SEHK:728Telecom
China Telecom (SEHK:728) Stock Sees Margin Pressure Cloud Its AI Ambitions
China Telecom stock closed at HK$4.885, roughly flat over the past week, even as the earnings tape gave investors more to chew on. The headline is simple. Profitability looks under pressure. Net profit margin is now 5.8%, down from 6.4% a year earlier, and that softer margin comes on top of a year in which earnings declined.
In the very short term the stock is trading more like a bond proxy than a growth story. Over a multi year horizon, investors will likely focus on whether the 7% earnings...