Here's What Analysts Are Forecasting For China Telecom Corporation Limited (HKG:728) After Its Yearly Results

Last week, you might have seen that China Telecom Corporation Limited (HKG:728) released its annual result to the market. The early response was not positive, with shares down 2.7% to HK$5.77 in the past week. Results were roughly in line with estimates, with revenues of CN¥524b and statutory earnings per share of CN¥0.36. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the 13 analysts covering China Telecom are now predicting revenues of CN¥547.4b in 2025. If met, this would reflect a credible 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.4% to CN¥0.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥549.7b and earnings per share (EPS) of CN¥0.39 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for China Telecom

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$6.41. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values China Telecom at HK$8.82 per share, while the most bearish prices it at HK$5.12. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that China Telecom's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 7.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.6% annually. Even after the forecast slowdown in growth, it seems obvious that China Telecom is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at HK$6.41, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for China Telecom going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for China Telecom that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.