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China Communications Services Corp Class H (HK:0552)
:0552

China Communications Services (0552) AI Stock Analysis

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HK

China Communications Services

(OTC:0552)

Rating:77Outperform
Price Target:
HK$5.00
▲(8.70%Upside)
The overall stock score of 77.3 reflects strong financial performance and attractive valuation. The company's robust financials, with strong cash flow and conservative leverage, provide stability. The low P/E ratio and high dividend yield offer significant value, despite mixed technical indicators suggesting cautious optimism.

China Communications Services (0552) vs. iShares MSCI Hong Kong ETF (EWH)

China Communications Services Business Overview & Revenue Model

Company DescriptionChina Communications Services Corporation Limited (CCS) is a leading provider of integrated support services in the information and communications technology (ICT) sector. The company operates primarily in China and offers a wide range of services, including telecommunications infrastructure services, business process outsourcing, and applications, content, and other services. CCS serves a diverse client base, including telecommunications operators, government agencies, and enterprises, helping them to optimize their operations and infrastructure.
How the Company Makes MoneyChina Communications Services generates revenue through a variety of streams within the ICT sector. A significant portion of its income is derived from telecommunications infrastructure services, where the company provides planning, design, construction, and project supervision services for communication networks. Additionally, CCS earns money through its business process outsourcing services, which include network maintenance, facilities management, and customer service operations. The company's applications, content, and other services also contribute to its revenue, offering solutions such as software development, system integration, and data center management. Strategic partnerships with major telecommunications operators and government contracts play a crucial role in CCS's revenue generation, providing stable and recurring income sources.

China Communications Services Financial Statement Overview

Summary
China Communications Services presents a robust financial profile with stable growth and efficient cash management. The income statement reflects growth opportunities but highlights challenges in profitability margins. The balance sheet is reinforced by low leverage and a substantial equity base, ensuring financial stability. Cash flow performance is strong, underlined by significant free cash flow growth and effective cash utilization.
Income Statement
75
Positive
The company shows a consistent revenue growth with a 0.93% increase from the previous year. Despite this, there is a notable drop in EBIT margin due to negative EBIT, affecting overall profitability. Gross profit margin remains positive at 11.73%, reflecting operational efficiency, but the net profit margin is 2.40%, indicating room for improvement in cost management.
Balance Sheet
80
Positive
The balance sheet is strong with a low debt-to-equity ratio of 0.04, indicating conservative leverage. The equity ratio is 33.25%, showing a solid equity base relative to assets. However, the return on equity is modest at 7.94%, pointing to potential areas for profitability enhancement.
Cash Flow
85
Very Positive
Cash flow analysis reveals a healthy free cash flow growth rate of 24.21%, supporting the company's liquidity. The operating cash flow to net income ratio is 1.73, highlighting efficient cash generation from operations. These factors contribute to strong cash flow management and financial flexibility.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
150.00B148.61B140.75B133.99B122.65B
Gross Profit
17.60B17.26B15.98B14.78B13.74B
EBIT
-3.03B2.61B1.89B1.64B1.75B
EBITDA
3.42B5.90B2.90B2.62B2.61B
Net Income Common Stockholders
3.61B3.58B3.36B3.16B3.08B
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.94B29.58B24.54B26.89B24.11B
Total Assets
136.62B121.79B110.26B100.03B94.49B
Total Debt
2.03B2.38B2.46B2.38B1.87B
Net Debt
-17.61B-20.54B-19.62B-18.80B-19.13B
Total Liabilities
90.00B78.12B68.64B60.42B57.30B
Stockholders Equity
45.44B42.58B40.36B38.41B36.72B
Cash FlowFree Cash Flow
5.14B4.14B3.68B2.74B1.92B
Operating Cash Flow
6.22B5.36B4.91B4.51B5.45B
Investing Cash Flow
-7.17B-2.12B-2.29B-3.67B-2.24B
Financing Cash Flow
-2.34B-2.40B-1.74B-628.35M-1.35B

China Communications Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.60
Price Trends
50DMA
4.25
Positive
100DMA
4.47
Positive
200DMA
4.32
Positive
Market Momentum
MACD
0.10
Negative
RSI
68.72
Neutral
STOCH
87.02
Negative
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 4.6 is above the 20-day moving average (MA) of 4.40, above the 50-day MA of 4.25, and above the 200-day MA of 4.32, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 68.72 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$826.33B10.7112.78%7.39%-7.73%-6.97%
77
Outperform
HK$31.93B8.178.19%5.51%-0.99%-1.64%
77
Outperform
HK$72.73B11.1113.65%4.53%-5.28%-13.15%
71
Outperform
€759.93B14.737.35%4.88%
61
Neutral
$14.60B5.88-4.32%3.68%2.75%-30.55%
59
Neutral
$48.77B11.939.94%4.34%1.39%-21.74%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0552
China Communications Services
4.60
0.73
19.02%
HK:1193
China Resources Gas Group
21.55
-4.89
-18.50%
HK:1088
China Shenhua Energy Co
33.60
-2.58
-7.13%
HK:0728
China Telecom
5.78
1.71
42.19%
HK:2688
ENN Energy Holdings
64.45
0.06
0.09%

China Communications Services Corporate Events

China Communications Services Announces AGM Results and Director Changes
May 29, 2025

China Communications Services Corporation Limited announced the successful passing of all proposed resolutions at its 2024 Annual General Meeting. Key resolutions included the approval of the company’s consolidated financial statements, profit distribution, and dividend payment for 2024, as well as the re-appointment of KPMG as auditors. Additionally, several directors were re-elected, ensuring continuity in the company’s leadership. These developments are expected to maintain the company’s strong operational framework and positively impact its market positioning.

The most recent analyst rating on (HK:0552) stock is a Hold with a HK$4.69 price target. To see the full list of analyst forecasts on China Communications Services stock, see the HK:0552 Stock Forecast page.

China Communications Services Announces Board Composition and Roles
May 29, 2025

China Communications Services Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement underscores the company’s commitment to strong governance and strategic oversight, which is crucial for maintaining its competitive position in the telecommunications industry and ensuring effective stakeholder engagement.

The most recent analyst rating on (HK:0552) stock is a Hold with a HK$4.69 price target. To see the full list of analyst forecasts on China Communications Services stock, see the HK:0552 Stock Forecast page.

China Communications Services Announces Final Dividend for 2024
May 29, 2025

China Communications Services Corporation Limited announced a final dividend of RMB 0.2187 per share for the financial year ending December 31, 2024, with payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.08968. The announcement highlights the company’s commitment to returning value to shareholders, with implications for international stakeholders due to varying withholding tax rates based on tax treaties between the PRC and other countries.

The most recent analyst rating on (HK:0552) stock is a Hold with a HK$4.69 price target. To see the full list of analyst forecasts on China Communications Services stock, see the HK:0552 Stock Forecast page.

China Communications Services Announces Supplemental AGM Notice and Board Election
May 9, 2025

China Communications Services Corporation Limited has issued a supplemental notice for its Annual General Meeting (AGM) scheduled for May 29, 2025, in Beijing. The notice includes an additional resolution for the election of Mr. Cheng Jianjun as a non-executive director. This appointment is expected to strengthen the company’s board and align with its strategic goals, potentially impacting its governance and stakeholder relations.

China Communications Services Proposes New Non-Executive Director Appointment
May 6, 2025

China Communications Services Corporation Limited has proposed the appointment of Mr. Cheng Jianjun as a non-executive director, pending shareholder approval at the upcoming annual general meeting on May 29, 2025. Mr. Cheng, with extensive experience in the telecommunications industry, currently holds several vice-presidential roles within China Mobile and has previously served in various high-level positions within China’s Ministry of Industry and Information Technology. His appointment is expected to strengthen the company’s strategic direction and governance, although he will not receive any salary or fees during his term.

China Communications Services Announces 2024 AGM and Key Resolutions
Apr 25, 2025

China Communications Services Corporation Limited has announced its annual general meeting for 2024, scheduled for May 29, 2025, in Beijing. Key agenda items include the approval of the 2024 financial statements, profit distribution, and dividend declaration, as well as the re-appointment of KPMG as auditors. Additionally, the re-election of several board members will be considered, reflecting the company’s ongoing commitment to governance and strategic planning.

China Communications Services Reports Strong Revenue Growth and Strategic Initiatives
Apr 8, 2025

China Communications Services Corporation Limited has reported a significant increase in operating revenue, surpassing RMB150 billion, driven by strategic emerging businesses and technological innovation. The company plans to continue leveraging digital technologies to capitalize on market opportunities, supported by its controlling shareholder’s commitment not to reduce its shareholding in 2025. Additionally, the company is considering a share repurchase plan to boost investor confidence and aims to enhance investor relations through improved transparency and communication.

China Communications Services Announces Final Dividend for 2024
Mar 27, 2025

China Communications Services Corporation Limited has announced a final cash dividend of RMB 0.2187 per share for the financial year ending December 31, 2024, with the payment date set for August 15, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may have implications for its financial performance and attractiveness to investors, particularly in the context of its tax arrangements for non-resident shareholders.

China Communications Services Reports Steady Growth and Dividend Proposal for 2024
Mar 27, 2025

China Communications Services reported its annual results for the year ending December 31, 2024, highlighting a 0.9% increase in total revenues to RMB150,000 million and a 0.6% rise in net profit to RMB3,607 million. The company achieved steady revenue growth across domestic and international markets, with a focus on technological innovation and strategic emerging industries. The Board proposed a final dividend of RMB0.2187 per share, reflecting a 42% payout ratio, underscoring the company’s stable performance and sound cash flow.

China Communications Services Announces Board Appointments and Re-elections
Mar 27, 2025

China Communications Services Corporation Limited has announced the proposed appointment of Ms. Chiu Mun Wai as an independent non-executive director and Mr. Chen Li as a non-executive director, subject to shareholder approval. The company is also proposing the re-election of several current directors as part of the transition to the seventh session of its Board. These appointments and re-elections are expected to bring extensive experience in management, telecommunications, finance, and accounting to the company, potentially strengthening its governance and strategic direction.

China Communications Services to Announce 2024 Financial Results
Mar 14, 2025

China Communications Services Corporation Limited has announced that its board of directors will meet on March 27, 2025, to approve the company’s final results for the year ending December 31, 2024, and to consider a final dividend payment. This meeting is significant as it will determine the company’s financial performance for the past year and potentially impact dividend payouts, which could influence investor sentiment and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.