Goldman Sachs: Maintains "buy" rating on three major Chinese telecommunications stocks, expected dividend payout ratio to steadily increase.

Goldman Sachs released a research report stating that, after examining the capital expenditures, dividends, number of users, cash cycle, free cash flow margin, average revenue per user (ARPU), EBITDA margin, synergy of new businesses, performance of internet data center business, and valuation of Chinese telecommunications companies, they believe that although traditional communication business revenue growth is weak, they still believe that Chinese telecommunications companies can drive consumption by providing more value-added services. New businesses covering data centers, computing power, AI models, and applications can become major beneficiaries of AI development. Goldman Sachs maintains a "buy" rating on China Mobile Limited (00941), China United Network Communications (00762), and China Telecom Corporation (00728), expecting the capital expenditure budgets of the three telecommunications companies to shift towards investment in computing infrastructure to capture the growth in Chinese AI demand. At the same time, the contribution of new businesses is increasing, and the dividend payout ratio is expected to steadily increase, providing investors with continued returns.