CMB International Securities analyst has maintained their neutral stance on CHWRF stock, giving a Hold rating on July 28.
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CMB International Securities’s rating is based on a combination of factors influencing China Tower’s performance. The company reported a modest increase in revenue and net profit for the first half of 2025, aligning closely with market expectations. However, despite these positive results, the free cash flow saw a decline, which may raise concerns about the company’s financial flexibility in the future.
Furthermore, while the legacy business is expected to remain stable, significant growth is anticipated in the DAS and Two Wings segments. The overall revenue growth is projected to be moderate, with limited upside in topline and EBITDA. The company’s dividend yield and payout ratio are attractive, but potential risks such as continued cost optimization by domestic telecom companies and a deteriorating dividend payout ratio contribute to the Hold rating. The target price has been adjusted to HK$13.1, reflecting these considerations.
In another report released on July 28, HSBC also maintained a Hold rating on the stock with a HK$12.70 price target.