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China Communications Services Corp Ltd Class H (HK:0552)
:0552
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China Communications Services (0552) AI Stock Analysis

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HK:0552

China Communications Services

(0552)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
HK$5.00
▲(5.26% Upside)
The overall stock score of 76 reflects a strong financial performance with efficient cash management and a solid balance sheet. The valuation is attractive due to a low P/E ratio and high dividend yield, making it appealing for value and income investors. Technical analysis indicates a neutral trend, with no significant momentum or overbought/oversold signals.

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 communication technology (ICT) sector. It primarily engages in telecommunications infrastructure services, business process outsourcing, and applications, content, and other services. The company operates in the People's Republic of China, with a focus on serving telecommunications operators, government agencies, and enterprises across various industries.
How the Company Makes MoneyChina Communications Services makes money through several key revenue streams. The primary source of revenue is its telecommunications infrastructure services, which include network construction, design, and project supervision. This is complemented by its business process outsourcing services, which encompass network maintenance, facilities management, and supply chain services. Additionally, the company generates income from its applications, content, and other services, which involve system integration, software development, and data center services. Significant partnerships with major telecommunications operators and government contracts contribute to its earnings, ensuring a steady flow of business and revenue.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue152.53B150.00B148.61B140.75B133.99B122.65B
Gross Profit17.37B17.60B17.26B15.98B14.78B13.74B
EBITDA3.21B3.42B5.90B2.90B2.62B2.61B
Net Income3.61B3.61B3.58B3.36B3.16B3.08B
Balance Sheet
Total Assets138.25B136.62B121.79B110.26B100.03B94.49B
Cash, Cash Equivalents and Short-Term Investments14.24B25.94B29.58B24.54B26.89B24.11B
Total Debt2.03B2.03B2.38B2.46B2.38B1.87B
Total Liabilities90.60B90.00B78.12B68.64B60.42B57.30B
Stockholders Equity46.46B45.44B42.58B40.36B38.41B36.72B
Cash Flow
Free Cash Flow7.77B5.14B4.14B3.68B2.74B1.92B
Operating Cash Flow8.63B6.22B5.36B4.91B4.51B5.45B
Investing Cash Flow-711.27M-7.17B-2.12B-2.29B-3.67B-2.24B
Financing Cash Flow-2.08B-2.34B-2.40B-1.74B-628.35M-1.35B

China Communications Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.75
Price Trends
50DMA
4.63
Positive
100DMA
4.56
Positive
200DMA
4.39
Positive
Market Momentum
MACD
0.04
Negative
RSI
60.54
Neutral
STOCH
91.26
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 4.75 is above the 20-day moving average (MA) of 4.60, above the 50-day MA of 4.63, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 91.26 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$32.90B8.458.00%5.02%1.54%-2.09%
€664.19B14.227.66%5.39%0.53%5.28%
$8.96B9.788.67%7.55%-0.62%-5.10%
$188.00B16.645.62%4.20%3.24%8.66%
$86.26B16.6914.75%2.96%2.33%2.41%
$48.67B4.58-11.27%4.14%2.83%-41.78%
HK$42.16B-148.911.76%4.26%36.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0552
China Communications Services
4.75
0.73
18.25%
HK:0788
China Tower
11.41
1.25
12.25%
HK:1883
CITIC Telecom International Holdings
2.49
0.43
20.87%
HK:0728
China Telecom
5.56
1.32
31.04%
HK:6823
HKT and HKT
11.43
2.36
26.06%
HK:0008
PCCW Limited
5.54
1.55
38.85%

China Communications Services Corporate Events

China Communications Services Announces EGM to Amend Governance Structure
Sep 30, 2025

China Communications Services Corporation Limited has announced an Extraordinary General Meeting (EGM) scheduled for October 23, 2025, in Beijing. The meeting will address significant amendments to the company’s Articles of Association, including the abolishment of the Supervisory Committee and changes to the Rules of Procedure for the General Meeting and the Board. These changes could potentially streamline the company’s governance structure and impact its operational efficiency.

The most recent analyst rating on (HK:0552) stock is a Buy with a HK$5.00 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 Reports Resilient Growth in 2025
Aug 22, 2025

China Communications Services Corporation Limited, a leading provider of integrated comprehensive smart solutions in the field of informatization and digitalization, has reported its interim results for the first half of 2025, showcasing resilience and stable growth amidst challenges in the traditional sector. The company achieved a total revenue of RMB76,939 million, marking a 3.4% increase year-on-year, with a net profit of RMB2,129 million, up by 0.2% from the previous year. The gross profit margin stood at 10.3%, while the net profit margin was 2.8%. The company’s strategic focus on digital infrastructure, smart products, and industrial digitalization services has driven growth across its three major business segments, with notable revenue increases in applications, content, and other services. Revenue from telecommunications infrastructure services rose by 1.6%, while business process outsourcing services saw a 1.0% increase. The applications, content, and other services segment experienced a significant 11.7% growth, driven by the proliferation of AI applications and digital transformation across industries. Looking ahead, China Communications Services aims to leverage its technological innovation and integrated service capabilities to drive high-quality development, focusing on strategic emerging industries such as digital infrastructure, smart city, and green and low-carbon initiatives. The company remains committed to enhancing its core competencies and expanding into emerging markets, with a focus on intelligent computing centers, smart operations, and new energy sectors, while maintaining sound corporate governance and fulfilling its environmental and social responsibilities.

China Communications Services Proposes Governance Amendments
Aug 21, 2025

China Communications Services Corporation Limited has announced proposed amendments to its Articles of Association and the abolishment of its supervisory committee, replacing it with an audit committee. These changes are in response to recent regulatory updates in the PRC Company Law and guidelines from the China Securities Regulatory Commission, aiming to ensure compliance and improve governance structures. The amendments will be subject to approval at an extraordinary general meeting, with further details to be provided to shareholders.

The most recent analyst rating on (HK:0552) stock is a Buy with a HK$5.00 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 Reports Stable Growth Amid Digital Transformation
Aug 21, 2025

China Communications Services reported stable and improving operating performance for the first half of 2025, with total revenues reaching RMB76,939 million, a 3.4% increase year-on-year. The company has successfully capitalized on opportunities in the digital economy and artificial intelligence sectors, which have driven significant revenue growth, particularly in the domestic non-operator and overseas markets. The company’s strategic focus on technological innovation and digital transformation has positioned it well for continued growth, as evidenced by the growth in all three major business segments and the increasing contribution of non-traditional markets to its revenue.

The most recent analyst rating on (HK:0552) stock is a Buy with a HK$5.00 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 to Announce Interim Results
Aug 8, 2025

China Communications Services Corporation Limited has announced that its board of directors will meet on August 21, 2025, to approve the interim results for the first half of the year ending June 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

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.

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.Date of analysis: Oct 16, 2025