① Why do telecom operators continue to be favored by capital? ② What does a high dividend rate mean for investors?
Financial Services Association, December 31 (Editor: Hu Jiarong) Today, Hong Kong stocks closed early due to the New Year's Day holiday. Looking back at this year's trends, Hong Kong stock telecom stocks are the top performers. By the close, China Unicom (00762.HK), China Telecom (00728.HK), and China Mobile (00941.HK) had accumulated increases of 64.85%, 40.80%, and 28.09% respectively.
Note: The performance of the three major operators
The rise in telecom stocks was mainly driven by the industry, policies, and dividends.
Traditional business stability: The traditional communication business of the three major operators is stable and can continue to provide stable cash flow to enterprises. It has maintained a relatively steady growth in the number of users and revenue from communication services, providing a solid foundation for the overall development of the enterprise.
Strong momentum for new businesses: With the spread of AI technology and the emergence of other new technologies and new business forms, the new momentum of operators in the digital industry continues to grow. For example, in emerging business fields such as cloud computing, big data, and the Internet of Things, operators have actively expanded their business and achieved remarkable results.
Dividend rate increase expectations: As large state-owned enterprises, the three major operators respond positively to national policies and continuously increase dividend payout ratios. According to current performance, its dividend rate is expected to increase further from the current level. Good dividend performance makes telecom stocks more attractive to investors. Especially in the current market environment, stable dividend income is of high value to investors.
Why does the telecom operator sector continue to be favored by capital?
First of all, the telecommunications industry, as a basic industry for economic development, will significantly benefit from the growth in enterprise and personal communication demand during the economic recovery process, and business volume and revenue are expected to increase simultaneously. The steady growth of the domestic economy has provided telecom operators with huge market space and a stable business foundation.
Second, with the acceleration of domestic digital transformation and the steady progress of new infrastructure, telecom operators are deeply involved in 5G construction, industrial Internet, etc., and the rich opportunities in the domestic market make investors look forward to the future of Hong Kong stock telecom stocks, which in turn is driving up stock prices.
