China Tower (0788) AI Stock Analysis

• Market Cap: $192.59B
• Dividend Yield: 0.4%
• Average Volume (3M): 13.35M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.52
• Revenue Growth: 2.02%
• EPS Growth: 7.93%
• Country: HK
• Employees: 24,107
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 4,666,385,700
• 10 Day Avg. Volume: 15,407,572
• 30 Day Avg. Volume: 13,349,485
• PEG Ratio: 10.56
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.64
• Price Target Upside: 3.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: HK$12.50 ▲(2.46%Upside)

China Tower's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and profitability. The technical analysis presents a mixed picture, with positive long-term trends but potential short-term bearish signals. Valuation appears reasonable, with some upside potential given the current P/E ratio and dividend yield. The absence of recent earnings call data and corporate events means these areas do not impact the score.

China Tower Business Overview & Revenue Model

Company Description

China Tower Corporation Limited provides telecommunication tower infrastructure services in the People's Republic of China. The company engages in the construction, maintenance, and operation of base station ancillary facilities, such as telecommunications towers and public network coverage in high-speed railways and subways, and large-scale indoor distributed antenna systems. It offers towers, and shelters or cabinets; and ancillary equipment to telecommunication services providers for installation of the telecommunications equipment. The company also provides maintenance services, including monitoring equipment operation, routine inspection, device breakdown handling, property upkeep, working environment protection, and operation analysis services. In addition, it offers power access, batteries, or back up power generation to the customers' telecommunications equipment; and indoor distributed antenna systems connecting telecommunication equipment, enabling them to receive and send indoor mobile telecommunication network signals, as well as mobile telecommunication network signals covering buildings, large venues, and tunnels. Further, the company provides backup power services to standby emergency power supply to corporate customers; battery exchange services to replaceable batteries to individual customers; and battery recharge services to corporate and individual customers, as well as engages in the provision of integrated information, power generation, and energy storage services. Additionally, it provides trans-sector site application and information services. The company was formerly known as China Communications Facilities Services Corporation Limited and changed its name to China Tower Corporation Limited in September 2014. China Tower Corporation Limited was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Tower makes money primarily through the leasing of its telecommunications towers and related infrastructure to major telecom operators in China, such as China Mobile, China Telecom, and China Unicom. The company generates revenue by providing space on its towers for antennas and other equipment, allowing telecom companies to expand their network coverage without significant capital expenditure. Additionally, China Tower offers maintenance services to ensure the reliability and efficiency of its infrastructure. The company's revenue model is heavily reliant on long-term contracts with telecom operators, ensuring a steady stream of income. These partnerships are crucial as they provide a stable and recurring revenue base, which is further supported by the ongoing expansion of 5G networks and increased demand for data services.

China Tower Financial Statement Overview

Summary

China Tower's financial performance is strong, with solid profitability and growth metrics. Revenue growth is consistent at 4.0%, and profit margins are impressive, with a gross margin of 83.0% and net margin of 11.0%. The balance sheet shows a healthy leverage position with a debt-to-equity ratio of 0.46, while cash flow indicates strong cash generation. Despite some past fluctuations in free cash flow, the company remains financially robust.

Income Statement

China Tower exhibits a positive growth trajectory with a consistent increase in total revenue, achieving a revenue growth rate of 4.0% from 2023 to 2024. The gross profit margin is impressive at 83.0% in 2024, indicating strong cost management, while the net profit margin has improved to 11.0%, showcasing enhanced profitability. The EBIT margin is stable at 16.7%, reflecting operational efficiency. EBITDA margin remains robust at 54.6%, signaling strong cash generation from core operations. Overall, the company maintains solid profitability and growth metrics, positioning it well within the telecommunications industry.

Balance Sheet

The company's balance sheet is strong with a debt-to-equity ratio of 0.46, indicating a healthy leverage position. The return on equity (ROE) has improved to 5.4%, suggesting effective use of equity capital to generate profits. The equity ratio stands at 60.1%, reflecting a strong equity base relative to total assets, enhancing financial stability. Despite the positive leverage and equity metrics, the company's total debt remains substantial, which could pose a risk if not managed carefully. Overall, the balance sheet demonstrates good financial health with manageable leverage.

Cash Flow

China Tower's cash flow performance is solid, with operating cash flow to net income ratio at 4.61, indicating strong cash generation relative to net income. The free cash flow has rebounded significantly to 19.7 billion in 2024, demonstrating effective capital expenditure management. The free cash flow to net income ratio stands at 1.83, reflecting good cash conversion efficiency. However, the company experienced fluctuations in free cash flow in previous years, which could indicate potential volatility. Overall, the cash flow position is stable, supporting operational and strategic initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.77B	94.01B	92.17B	86.58B	81.10B
Gross Profit	81.21B	88.62B	86.31B	81.42B	75.29B
EBITDA	53.42B	64.71B	64.06B	63.34B	59.88B
Net Income	10.73B	9.75B	8.79B	7.33B	6.43B
Balance Sheet
Total Assets	332.83B	326.01B	305.56B	323.26B	337.38B
Cash, Cash Equivalents and Short-Term Investments	4.47B	5.18B	5.12B	6.47B	5.04B
Total Debt	92.55B	94.63B	79.12B	101.30B	112.87B
Total Liabilities	132.85B	128.31B	111.97B	133.91B	151.13B
Stockholders Equity	199.98B	197.69B	193.59B	189.35B	186.25B
Cash Flow
Free Cash Flow	19.68B	-638.00M	36.47B	27.83B	19.55B
Operating Cash Flow	49.47B	32.84B	65.13B	60.50B	57.55B
Investing Cash Flow	-27.98B	-31.91B	-27.66B	-31.52B	-37.90B
Financing Cash Flow	-22.84B	-2.10B	-38.83B	-27.56B	-20.84B

China Tower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0788, the sentiment is Positive. The current price of 12.2 is above the 20-day moving average (MA) of 11.41, above the 50-day MA of 11.49, and above the 200-day MA of 10.87, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 72.16 is Negative, neither overbought nor oversold. The STOCH value of 95.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0788.

China Tower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0788	69 Neutral	$192.59B	18.00	5.39%	0.40%	2.02%	7.93%
Sector *	62 Neutral	$40.93B	-1.67	-12.06%	3.96%	2.10%	-69.66%
CCTTF	―	$1.20B	10.39	8.46%	9.41%	―	―
ZCH	―	€79.75B	11.30	7.35%	3.53%	―	―
CUCSF	―	$3.97B	8.18	8.19%	5.13%	―	―
HKTTF	―	$12.13B	18.18	13.76%	7.54%	―	―
0008	62 Neutral	HK$44.33B	―	-14.69%	9.99%	3.33%	36.39%

China Tower Corporate Events

China Tower Announces EGM to Appoint New Directors

China Tower Corporation Limited has announced the convening of its first extraordinary general meeting (EGM) of 2025, scheduled for July 23, 2025, in Beijing. The meeting will address the appointment of three new directors: Mr. Miao Shouye as a non-executive director, and Mr. Pei Zhenjiang and Mr. Wen Bugao as independent non-executive directors. This strategic move is expected to strengthen the company’s governance and potentially enhance its market positioning by bringing diverse expertise to its board.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$1.25 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Enhances Corporate Governance with Nomination Committee Amendments

China Tower Corporation Limited has amended the terms of reference for its Nomination Committee to enhance the selection and appointment process for directors and senior management. This move aims to improve corporate governance by ensuring a diverse and independent board composition, which is expected to strengthen the company’s strategic alignment and operational effectiveness.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$1.25 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Announces Board Resignations and New Director Appointments

China Tower Corporation Limited has announced the resignation of three directors, Mr. Tang Yongbo, Mr. Dong Chunbo, and Mr. Sin Hendrick, due to various personal reasons and changes in work arrangements. The company has proposed the appointments of Mr. Miao Shouye as a non-executive director and Mr. Pei Zhenjiang and Mr. Wen Bugao as independent non-executive directors, pending shareholder approval at the upcoming extraordinary general meeting. These changes in the board are expected to bring new perspectives and expertise to the company, potentially impacting its strategic direction and governance.

The most recent analyst rating on (HK:0788) stock is a Hold with a HK$12.60 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Announces Board Composition and Committee Roles

China Tower Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of its executive, non-executive, and independent non-executive directors. This announcement outlines the structure of the board committees, which include the Strategy, Remuneration and Appraisal, Nomination, Audit, and Connected Transaction Committees, indicating a structured governance approach that may impact the company’s strategic direction and operational efficiency.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$1.25 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Announces Final Dividend for 2024

China Tower Corporation Limited has announced a final cash dividend of RMB 0.30796 per share for the financial year ending December 31, 2024, with payments to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.084599. The announcement includes details about withholding tax rates applicable to non-resident shareholders, reflecting the company’s commitment to transparent financial practices and its impact on shareholder returns.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$1.25 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Approves Key Resolutions at AGM, Appoints New Director

China Tower Corporation Limited held its Annual General Meeting (AGM) on May 20, 2025, where several key resolutions were passed. The resolutions included the approval of the company’s consolidated financial statements, profit distribution, and final dividend declaration for the year ended December 31, 2024. Additionally, the re-appointment of KPMG as the international auditor and KPMG Huazhen LLP as the domestic auditor was approved. The AGM also saw the appointment of Mr. Cheng Jianjun as a non-executive director. These decisions reflect the company’s ongoing commitment to maintaining robust financial practices and enhancing its governance structure.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$1.25 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Revises AGM Notice to Include New Director Appointment and Debt Financing Plans

China Tower Corporation Limited has issued a revised notice for its upcoming annual general meeting (AGM) scheduled for May 20, 2025, in Hong Kong. The revised notice includes an additional resolution for the appointment of a non-executive director, Mr. Cheng Jianjun. The AGM will address several key resolutions, including the approval of financial statements, profit distribution, and auditor appointments. Additionally, a special resolution will be considered to grant the board a mandate to issue debt financing instruments up to RMB50 billion, reflecting the company’s strategic financial planning and potential expansion efforts.

China Tower Proposes New Non-Executive Director Appointment

China Tower Corporation Limited has proposed the appointment of Mr. Cheng Jianjun as a non-executive director, pending shareholder approval at the upcoming annual general meeting. Mr. Cheng brings extensive experience from his previous roles in various communications and regulatory bodies in China, which could enhance China Tower’s strategic positioning in the telecommunications sector.