China Communications Services Corp Ltd Class H (HK:0552)
:0552
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China Communications Services
(0552)
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Rating:64Neutral
Price Target:
HK$4.50
â–˛(6.64% Upside)
Action:Downgraded
Date:05/05/26
The score is supported primarily by very strong valuation (very low P/E and high dividend yield). This is tempered by weakened financial performance driven by the latest year’s sharp free-cash-flow decline and a small revenue drop. Technicals are neutral, reflecting modest near-term stabilization but a weaker longer-term trend.
Positive Factors
Recurring services mix
A sizeable recurring services footprint (network maintenance, operations and ICT solutions) provides steadier revenue and higher client stickiness than pure project work. Over 2–6 months this supports predictability, cross-sell opportunities and durability through telecom capex cycles.
Negative Factors
Severe cash-flow deterioration
A near-total drop in free cash flow and weaker operating cash flow signal material working-capital stress or higher outflows. Persistently weak cash conversion reduces internal funding for capex, slows deleveraging, and raises execution and liquidity risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring services mix
A sizeable recurring services footprint (network maintenance, operations and ICT solutions) provides steadier revenue and higher client stickiness than pure project work. Over 2–6 months this supports predictability, cross-sell opportunities and durability through telecom capex cycles.
Read all positive factors
China Communications Services (0552) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$28.40B
Dividend Yield5.24%
Average Volume (3M)11.46M
Price to Earnings (P/E)2.4
Beta (1Y)0.76
Revenue Growth0.06%
EPS Growth-0.05%
CountryHK
Employees75,068
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.92
Shares Outstanding2,391,420,200
10 Day Avg. Volume15,257,161
30 Day Avg. Volume11,459,669
Financial Highlights & Ratios
PEG Ratio-4.12
Price to Book (P/B)0.58
Price to Sales (P/S)0.19
P/FCF Ratio155.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.73Price Target Upside12.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.53
Revenue Forecast (FY)HK$151.38B
China Communications Services Business Overview & Revenue Model
Company Description
Operating globally, China Communications Services Corporation Limited specializes in delivering comprehensive support services for the telecommunications sector. Its extensive offerings encompass telecommunications infrastructure solutions, spanni...
How the Company Makes Money
The company primarily makes money by delivering project-based and recurring services to customers (notably telecommunications operators, as well as government and enterprise clients) across several major revenue streams. (1) Telecommunications inf...
China Communications Services Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 146.21B | 150.00B | 148.61B | 140.75B | 133.99B |
| Gross Profit | 15.91B | 17.60B | 17.26B | 15.98B | 14.78B |
| EBITDA | 4.07B | 3.42B | 5.90B | 2.90B | 2.62B |
| Net Income | 3.52B | 3.61B | 3.58B | 3.36B | 3.16B |
Balance Sheet | |||||
| Total Assets | 136.74B | 136.62B | 121.79B | 110.26B | 100.03B |
| Cash, Cash Equivalents and Short-Term Investments | 18.33B | 25.94B | 29.58B | 24.54B | 26.89B |
| Total Debt | 7.48B | 2.03B | 2.38B | 2.46B | 2.38B |
| Total Liabilities | 87.63B | 90.00B | 78.12B | 68.64B | 60.42B |
| Stockholders Equity | 47.86B | 45.44B | 42.58B | 40.36B | 38.41B |
Cash Flow | |||||
| Free Cash Flow | 179.30M | 5.14B | 4.14B | 3.68B | 2.74B |
| Operating Cash Flow | 937.72M | 6.22B | 5.36B | 4.91B | 4.51B |
| Investing Cash Flow | -4.12B | -7.17B | -2.12B | -2.29B | -3.67B |
| Financing Cash Flow | -2.11B | -2.34B | -2.40B | -1.74B | -628.35M |
China Communications Services Technical Analysis
Positive
4.22
Price Trends
4.02
Positive
4.12
Negative
4.25
Negative
Market Momentum
-0.01
Negative
55.78
Neutral
9.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0552, the sentiment is Positive. The current price of 4.22 is above the 20-day moving average (MA) of 4.05, above the 50-day MA of 4.02, and below the 200-day MA of 4.25, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 9.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0552.
China Communications Services Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$10.18B | 11.06 | 8.45% | 7.46% | -0.06% | 1.10% | |
70 Outperform | HK$625.38B | 17.94 | 6.83% | 5.40% | 1.29% | -3.41% | |
67 Neutral | HK$170.26B | 11.69 | 6.26% | 4.03% | 2.73% | 8.45% | |
67 Neutral | HK$90.46B | 17.10 | 14.46% | 2.86% | 5.18% | 4.25% | |
64 Neutral | HK$28.40B | 2.36 | 7.60% | 5.24% | 0.06% | -0.05% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
46 Neutral | HK$45.14B | -1,671.68 | -2.39% | 1.68% | 7.18% | 15.72% |
* Communication Services Sector Average
HK:0552
China Communications Services
4.10
<0.01
0.12%
HK:0788
China Tower
9.74
-1.42
-12.72%
HK:1883
CITIC Telecom International Holdings
2.75
0.58
26.85%
HK:0728
China Telecom
4.94
-0.56
-10.21%
HK:6823
HKT and HKT
11.93
1.37
12.93%
HK:0008
PCCW Limited
5.83
1.01
21.08%
China Communications Services Corporate Events
China Communications Services Sets 2025 AGM With New Share Issuance Mandate
Apr 29, 2026
China Communications Services has called its 2025 annual general meeting for 28 May 2026 in Beijing, where shareholders will review and approve the 2025 consolidated financial statements, directors’ report and the international auditor’...
China Communications Services Seeks Mandate to Repurchase Up to 10% of H Shares
Apr 29, 2026
China Communications Services has called a 2026 Domestic Shareholders’ Class Meeting in Beijing on 28 May 2026 to seek approval for a special resolution granting its board a general mandate to repurchase H shares. The proposed mandate would ...
China Communications Services Seeks H Shareholders’ Mandate for 10% Buyback
Apr 29, 2026
China Communications Services has called a 2026 class meeting for its H shareholders in Beijing on 28 May to vote on a special resolution granting the board a general mandate to repurchase H shares. The mandate would allow the company to buy back ...
China Communications Services Proposes Final 2025 Dividend and Sets H-Share Tax Terms
Mar 31, 2026
China Communications Services Corporation Limited has proposed a final ordinary cash dividend of RMB 0.2241 per share for the financial year ended 31 December 2025, subject to shareholder approval on 28 May 2026. The dividend for H-share investors...
China Communications Services Posts Stable 2025 Results, Raises Dividend on AI-Driven Opportunities
Mar 31, 2026
China Communications Services reported largely stable 2025 results as it navigated cautious customer spending and fierce competition while capitalizing on AI-related demand. Revenue reached RMB150.09 billion and net profit RMB3.61 billion, both in...
China Communications Services Sets March 31 Board Meeting on 2025 Results and Dividend
Mar 18, 2026
China Communications Services said its board will meet on 31 March 2026 to review and approve the audited financial results for the year ended 31 December 2025. The board will also consider whether to recommend a final dividend, a decision that co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.