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<Research>JPM: CHINA TELECOM Is Proxy for AI Token Theme; 3 Key Telecoms Rated Overweight; CHINA MOBILE Top Pick
Recommend 23 Positive 26 Negative 11 |
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The three major Chinese telecom stocks saw their H-share prices escalate yesterday (18th) after launching AI Token packages targeting SMEs and retail users, reflecting investors' optimism that telecom operators will become "bricks-and-mortar" beneficiaries of AI monetization, JP Morgan said in its report. The broker upheld its positive view on CHINA MOBILE (00941.HK), CHINA TELECOM (00728.HK) and CHINA UNICOM (00762.HK), assigning all three an Overweight rating. It believed AI monetization and improving competition dynamics in telecom services are expected to drive ARPU growth to resume from 2026 and earnings growth to recover from 2027, while 2026 will be impacted by VAT adjustment. Among the three telecoms, JP Morgan's top H-share pick remained CHINA MOBILE, followed by CHINA TELECOM and CHINA UNICOM. The broker said CHINA TELECOM serves as a proxy for the AI Token theme and is best positioned to benefit from positive sentiment surrounding China's AI Token theme and the launch of DeepSeek V4, as its cloud business revenue is expected to make up of 25% of service revenue in 2025, above 12% for CHINA MOBILE and 21% for CHINA UNICOM. CHINA TELECOM's Token packages have begun pilot commercialization, targeting individual/ household users, developers and SMEs, integrating its proprietary Xingchen large model, Zhipu GLM5 and other mainstream domestic models. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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