China Telecom Sector: Prefer telecom operators on attractive yields and stable outlook
- Operators’ earnings will grow 7-10% in FY24, on solid growth in industrial internet business
- Stable capex outlook in FY24; computing power investments will grow further, by c.30%
- Prefer operators over equipment providers, on former’s yields of 7-8% and stable growth
- Top pick: China Mobile (941 HK) on its 8% yield and share price defensiveness
