Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>UBS Estimates CN Telecom VAT Hike to Impact Earnings of China Mobile/ China Telecom/ China Unicom by 9%/ 18%/ 18%+
Recommend 45 Positive 55 Negative 31 |
||||
|
||||
|
China's three major telecom operators announced a VAT adjustment yesterday (1st), according to a UBS research report. Starting from January 1, 2026, the business tax rate for mobile data, SMS/ MMS, and internet broadband services will be increased from 6% to 9%. In UBS' estimate, this adjustment will gravely dent the earnings of the three Chinese telecom giants, as the revenues from the above-mentioned services accounted for 45-60% of their estimated service revenues in 2025. UBS expects the VAT hike to affect the service revenues of telecom operators by around 1.5-2%. Assuming a corporate income tax rate of 25% and without considering other cost or tax deduction measures, the net profit of CHINA MOBILE (00941.HK), CHINA TELECOM (00728.HK), and CHINA UNICOM (00762.HK) will be impacted by around 9%, 17.9%, and 18.2%, respectively, based on the 2025 net profit forecast. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
