China Telecom

1. Revenue and Profitability Analysis: Look at the company's revenue and profit trends over the past few years. Analyze the growth rate, profit margins, and overall financial performance. Compare it with other companies in the industry to get a better understanding of the company's standing.
2. Regulatory Environment: Regulatory environment plays a crucial role in the telecommunications and network services industry. Look at the regulations that govern the industry and how it could impact the company's operations and financial performance.
3. Key Financial Ratios: Analyze key financial ratios such as return on equity (ROE), debt-to-equity ratio, and current ratio to assess the company's financial health and efficiency in managing its assets, debts, and operations.
4. Market and Competition: The telecommunications and network services industry is highly competitive. Research the company's market share, its position in the market, and the strength of its competitors. A company with a substantial market share and a strong competitive advantage is likely to have a good financial position.
5. Debt and Liquidity: Analyze the company's debt level and its ability to meet its short and long-term financial obligations. Look at its liquidity position by evaluating its cash flow and current assets to ensure that it has enough resources to meet its financial requirements.
6. Capital Expenditures: Given the nature of the industry, companies in the telecommunications and network services industry have to make significant capital expenditures to keep up with technological advancements. Analyze the company's capital expenditure plans and its ability to fund them.
7. Subscriber Growth and Retention: Since revenues are highly dependent on subscriber growth and retention, it is crucial to analyze the company's customer base. Look at the customer churn rate, growth in subscribers, and the company's strategy to attract and retain customers.
8. Management and Leadership: A company's management and leadership play a crucial role in its financial performance. Look at the board of directors, executive team, and their experience in the industry. Evaluate their track record and their ability to drive the company's growth and profitability.
9. Future Growth Potential: Analyze the company's growth prospects, expansion plans, and investments in new technologies and services. A company that has a solid growth strategy is likely to have a positive long-term financial outlook.
10. Industry Outlook: It is essential to consider the overall industry outlook and how it could impact the company's financial performance. Look at industry trends, regulatory changes, and technological advancements to assess the company's ability to adapt and stay competitive.

The cost structure in the telecommunications and network services industry can vary depending on the specific services being provided. However, some common cost structures include:
1. Capital Expenditures: This includes the costs of building and maintaining telecommunication networks, such as laying down cables, installing equipment, and building towers.
2. Operating Expenses: These are the ongoing costs associated with running a telecommunications business, such as employee salaries, marketing costs, and rent for office spaces.
3. Network Infrastructure Costs: This includes the costs associated with maintaining and upgrading the existing network infrastructure, such as hardware and software maintenance, data center costs, and cloud computing expenses.
4. Spectrum Lease and License Fees: Telecommunications companies need to pay for the use of radio frequencies to operate their networks, which can be a significant cost.
5. Customer Acquisition Costs: This includes the costs associated with marketing and advertising to attract new customers.
6. Interconnection Costs: Telecommunications companies often need to connect their networks with other networks through agreements, which can incur additional costs.
Profit margins in the telecommunications and network services industry are typically high due to the significant investment required for network infrastructure and the relatively low marginal costs for providing services. However, these margins can vary depending on the competition in the market, pricing strategies, and regulatory costs. Some subsectors, such as mobile network operators, may have lower margins due to intense competition and high customer acquisition costs. On the other hand, companies providing specialized services like cloud computing may have higher profit margins due to lower infrastructure costs and high demand.