Telecoms, Mobiles, 5G, Satellites etc. 02 (Jun 21 - Dec 26)

[behappyalways]

The other side of soaring memory costs.

Chinese smartphone makers including Xiaomi, Oppo and Shenzhen Transsion are trimming shipment targets for 2026 due to rising memory costs, with Oppo cutting its forecast by as much as 20%; Jieman
https://x.com/zerohedge/status/2013303383902372127

[winston]

CHINA TELECOM/ CHINA UNICOM/ CHINA MOBILE Open Down 6%/ 7%/ 2% as CN Telecom Service VAT Raised to 9%

China's Ministry of Finance and the State Administration of Taxation, had recently issued an announcement on the specific matters concerning the scope of VAT taxation, according to the three telecom giants.

This announcement stipulates that business activities providing mobile data services, SMS and MMS services, and internet broadband access services within the national borders using fixed networks, mobile networks, satellites, and the internet have had their tax category adjusted from value-added telecom services to basic telecom services from January 1, 2026.

The corresponding VAT rate has also been adjusted from 6% to 9%.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

<Research>UBS Estimates CN Telecom VAT Hike to Impact Earnings of China Mobile/ China Telecom/ China Unicom by 9%/ 18%/ 18%+

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.

Related News: M Stanley Downgrades CN Telecoms to In-Line as Drivers of Upcycle Over Past Yrs End

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.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

<Research>Nomura: Challenging 2026 for CN Telecoms; CHINA TELECOM, CHINA UNICOM Downgraded to Neutral

Chinese official national data tracked a weak year in the telecom industry for 2025, with service revenue growth slowing from a previous 3.2% YoY to 0.7%, Nomura's research report said.

This mainly reflected market saturation in core business, milder growth in emerging businesses, intensified competition, and a weak macro environment.

The broker maintained a Buy rating on CHINA MOBILE (00941.HK) H-shares, with a target price reduced from HKD106 to HKD96.

Meanwhile, it downgraded CHINA TELECOM (00728.HK) and CHINA UNICOM (00762.HK) H-shares to Neutral, lowering CHINA TELECOM's target price from HKD7.2 to HKD5.5 and CHINA UNICOM's target price from HKD11.7 to HKD8.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

Smartphone market set to shrink 13% due to memory chip crisis, IDC says
https://www.theedgesingapore.com/news/s ... s-idc-says

[behappyalways]

Entry-Level Android Phones Jump at Least 10%! Q1 Market Share Drops to 73% (New Low), While Apple...
https://m.youtube.com/watch?v=VdRglxxdvBo