JPM Selects CHINA MOBILE (00941.HK) as Sector Top Pick, Rated Overweight
JPM Selects CHINA MOBILE (00941.HK) as Sector Top Pick, Rated Overweight
The performance of Chinese telecoms in 4Q21 was mixed, reported JPMorgan. The attractive dividend policy of CHINA MOBILE (00941.HK) exceeded the market's expectations, while the growth of CHINA UNICOM (00762.HK)'s dividend payout ratio was disappointing, the broker illustrated.
JPMorgan viewed CHINA MOBILE as the sector top pick, favoring its strong balance sheet, enticing 10% dividend yield with high visibility of growth and potential share price support from the H-share repurchase program. CHINA MOBILE was rated at Overweight, with a target price of $70.
CHINA TELECOM (00728.HK) was also preferred, on the back of its 9% dividend yield, robust growth and extensive exposure to non-traditional fixed-line businesses. CHINA UNICOM, on the other hand, was not recommended due to its relatively weak dividend profile and balance sheet. CHINA TOWER (00788.HK)'s share price, meanwhile, was projected to remain flattish.
The broker's preference order, from the most favourite to the least, for the telecom sector was CHINA MOBILE, CHINA TELECOM (Overweight/ TP $3.7), CHINA UNICOM (Neutral/ TP $4.3) and CHINA TOWER (Neutral/ TP $0.95).
據摩根大通報道，中國電信業在2011年第四季度的表現喜憂參半。該經紀商表示，中國移動(00941.HK)誘人的股息政策超出了市場的預期，而中國聯通(00762.HK)的股息支付率增長令人失望。
摩根大通將中國移動視為行業首選，青睞其強勁的資產負債表，憑藉高度的增長可見度和H股回購計劃對股價的潛在支撐，吸引了10%的股息收益率。中國移動的評級為加碼，目標價為70美元。
中國電信(00728.HK)也因其9%的股息收益率、強勁的增長和對非傳統固話業務的廣泛敞口而受到青睞。另一方面，中國聯通沒有被推薦，因為其股息狀況和資產負債表相對較弱。與此同時，中國鐵塔(00788.HK)的股價預計將持平。
該經紀商對電信板塊的偏好從高到低依次是中國移動、中國電信(增持/TP$3.7)、中國聯通(中性/TP$4.3)和China Tower(中性/TP$0.95)。