China Telecom Corporation Limited

SZSC:728 Stock Report

Market Cap: HK$650.2b

China Telecom Valuation

Is 728 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 728 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 728 (HK$4.85) is trading below our estimate of fair value (HK$14.51)

Significantly Below Fair Value: 728 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 728?

Key metric: As 728 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 728. This is calculated by dividing 728's market cap by their current earnings.
What is 728's PE Ratio?
PE Ratio12.8x
EarningsCN¥32.64b
Market CapCN¥610.11b

Price to Earnings Ratio vs Peers

How does 728's PE Ratio compare to its peers?

The above table shows the PE ratio for 728 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.2x
762 China Unicom (Hong Kong)
10x5.2%HK$218.8b
788 China Tower
17.4x24.1%HK$195.8b
6823 HKT Trust and HKT
14.2x5.1%HK$71.2b
941 China Mobile
11.1x2.7%HK$1.7t
728 China Telecom
12.8x7.1%HK$650.2b

Price-To-Earnings vs Peers: 728 is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (13.2x).

Price to Earnings Ratio vs Industry

How does 728's PE Ratio compare vs other companies in the Asian Telecom Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
728 12.8xIndustry Avg. 15.6xNo. of Companies28PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 728 is good value based on its Price-To-Earnings Ratio (12.8x) compared to the Asian Telecom industry average (15.6x).

Price to Earnings Ratio vs Fair Ratio

What is 728's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

728 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio11.7x

Price-To-Earnings vs Fair Ratio: 728 is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 728 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$4.85
HK$5.63
+16.0%
15.4%HK$8.54HK$4.86n/a14
Dec ’25HK$4.52
HK$5.74
+27.0%
15.0%HK$8.75HK$4.98n/a15
Nov ’25HK$4.46
HK$5.74
+28.7%
15.0%HK$8.75HK$4.98n/a15
Oct ’25HK$4.46
HK$5.80
+30.1%
15.0%HK$8.85HK$5.06n/a15
Sep ’25HK$4.75
HK$5.74
+20.9%
14.9%HK$8.75HK$5.00n/a15
Aug ’25HK$4.62
HK$5.57
+20.7%
16.3%HK$8.73HK$4.68n/a15
Jul ’25HK$4.63
HK$5.41
+16.9%
16.7%HK$8.69HK$4.67n/a16
Jun ’25HK$4.48
HK$5.43
+21.1%
16.9%HK$8.75HK$4.70n/a16
May ’25HK$4.32
HK$5.42
+25.4%
16.9%HK$8.74HK$4.69n/a16
Apr ’25HK$4.19
HK$5.42
+29.3%
16.5%HK$8.66HK$4.69n/a16
Mar ’25HK$4.15
HK$5.37
+29.4%
17.7%HK$8.71HK$4.37n/a16
Feb ’25HK$3.99
HK$5.45
+36.6%
17.2%HK$8.77HK$4.40n/a19
Jan ’25HK$3.74
HK$5.48
+46.6%
17.7%HK$8.98HK$4.63n/a19
Dec ’24HK$3.64
HK$5.38
+47.7%
17.6%HK$8.79HK$4.53HK$4.5219
Nov ’24HK$3.40
HK$5.30
+56.0%
17.6%HK$8.73HK$4.49HK$4.4620
Oct ’24HK$3.92
HK$5.31
+35.5%
17.2%HK$8.75HK$4.50HK$4.4620
Sep ’24HK$3.75
HK$5.28
+40.7%
17.2%HK$8.62HK$4.16HK$4.7521
Aug ’24HK$3.98
HK$5.25
+31.9%
16.5%HK$8.70HK$4.20HK$4.6221
Jul ’24HK$3.75
HK$5.28
+40.7%
16.7%HK$8.66HK$4.00HK$4.6320
Jun ’24HK$3.91
HK$5.40
+38.0%
15.6%HK$8.54HK$4.13HK$4.4820
May ’24HK$4.35
HK$5.42
+24.6%
15.9%HK$8.69HK$4.20HK$4.3221
Apr ’24HK$4.17
HK$5.31
+27.4%
12.0%HK$7.32HK$4.24HK$4.1921
Mar ’24HK$4.18
HK$4.46
+6.7%
17.7%HK$7.24HK$3.40HK$4.1522
Feb ’24HK$3.87
HK$4.41
+13.8%
18.1%HK$7.40HK$3.47HK$3.9921
Jan ’24HK$3.07
HK$4.18
+36.2%
21.2%HK$7.43HK$2.99HK$3.7421
Dec ’23HK$3.12
HK$4.06
+30.0%
21.4%HK$7.29HK$2.92HK$3.6421

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:41
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

China Telecom Corporation Limited is covered by 62 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jie LiuAuriga USA LLC
Anand RamachandranBarclays
Alen LinBNP Paribas Securities (Asia)