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China Tower (HK:0788)
:0788
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China Tower (0788) AI Stock Analysis

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HK:0788

China Tower

(0788)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
HK$12.50
▲(8.60% Upside)
China Tower's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability. The valuation is fair with an attractive dividend yield, although technical analysis shows mixed signals with potential bearish momentum. The absence of earnings call and corporate events data did not impact the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for China Tower's services, enhancing its market position and supporting long-term profitability.
Profit Margins
High profit margins reflect efficient operations and cost management, ensuring sustainable profitability and competitive advantage in the industry.
Cash Flow Management
Strong cash flow management supports operational stability and strategic investments, enabling China Tower to capitalize on growth opportunities.
Negative Factors
Debt Levels
High debt levels can limit financial flexibility and increase risk, potentially impacting China Tower's ability to invest in future growth.
Free Cash Flow Volatility
Volatile free cash flow may affect China Tower's ability to consistently fund operations and strategic initiatives, posing a risk to financial stability.
Leverage Concerns
While leverage is currently manageable, substantial debt levels require careful management to avoid potential financial strain in the future.

China Tower (0788) vs. iShares MSCI Hong Kong ETF (EWH)

China Tower Business Overview & Revenue Model

Company DescriptionChina Tower Corporation Limited (0788) is a leading telecommunications infrastructure service provider in China. Established to support the rapid growth of mobile communications, the company primarily operates in the telecommunication tower sector, providing tower leasing services, and other related infrastructure services to mobile network operators. It focuses on the construction, maintenance, and management of telecommunication towers and related assets, playing a vital role in enhancing network coverage and capacity for its customers.
How the Company Makes MoneyChina Tower generates revenue primarily through the leasing of telecommunication towers to mobile network operators, which constitutes its core revenue stream. The company charges its clients for the use of its tower infrastructure, which is a stable and recurring source of income. Additionally, China Tower offers ancillary services such as site maintenance, installation of equipment, and network optimization, which contribute to its overall earnings. The firm has established significant partnerships with major telecom operators in China, including China Mobile, China Unicom, and China Telecom, ensuring a steady demand for its services. The growing need for improved mobile network coverage, particularly with the rollout of 5G technology, further enhances its revenue potential as telecom operators expand their infrastructure to meet increasing data demands.

China Tower Financial Statement Overview

Summary
China Tower demonstrates strong financial performance with consistent revenue growth, impressive profit margins, and effective cash flow management. The balance sheet is solid with manageable leverage, although total debt remains significant. Overall, the company exhibits robust financial health with growth potential.
Income Statement
85
Very Positive
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
78
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue97.77B94.01B92.17B86.58B81.10B
Gross Profit81.21B88.62B86.31B81.42B69.18B
EBITDA53.42B64.71B64.06B63.34B59.88B
Net Income10.73B9.75B8.79B7.33B6.43B
Balance Sheet
Total Assets332.83B326.01B305.56B323.26B337.38B
Cash, Cash Equivalents and Short-Term Investments4.47B5.18B5.12B6.47B5.04B
Total Debt92.55B94.63B79.12B101.30B112.87B
Total Liabilities132.85B128.31B111.97B133.91B151.13B
Stockholders Equity199.98B197.69B193.59B189.35B186.25B
Cash Flow
Free Cash Flow19.68B-638.00M36.47B27.83B19.55B
Operating Cash Flow49.47B32.84B65.13B60.50B57.55B
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 Price11.51
Price Trends
50DMA
11.50
Positive
100DMA
11.43
Positive
200DMA
11.17
Positive
Market Momentum
MACD
-0.02
Positive
RSI
50.51
Neutral
STOCH
44.72
Neutral
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 11.51 is below the 20-day moving average (MA) of 11.52, above the 50-day MA of 11.50, and above the 200-day MA of 11.17, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 44.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0788.

China Tower 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%4.96%1.54%-2.09%
€664.19B14.227.66%5.36%0.53%5.28%
$8.96B9.788.67%7.55%-0.62%-5.10%
$86.26B16.6914.75%2.97%2.33%2.41%
$188.00B16.645.62%4.17%3.24%8.66%
$48.67B4.58-11.27%4.14%2.83%-41.78%
HK$42.16B-148.911.77%4.26%36.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0788
China Tower
11.51
1.15
11.13%
HK:1883
CITIC Telecom International Holdings
2.49
0.41
19.77%
HK:0728
China Telecom
5.59
1.28
29.70%
HK:0552
China Communications Services
4.80
0.76
18.93%
HK:6823
HKT and HKT
11.38
2.31
25.51%
HK:0008
PCCW Limited
5.51
1.52
38.10%

China Tower Corporate Events

China Tower Reports Steady Growth in 2025 Earnings
Oct 17, 2025

China Tower Corporation Limited is a leading provider of digital infrastructure services in China, specializing in telecommunications tower management and new energy applications. The company recently reported its unaudited financial results for the first three quarters of 2025, highlighting a steady growth trajectory. Operating revenue reached RMB74,319 million, marking a 2.6% increase compared to the same period last year. The company’s Smart Tower and Energy businesses showed significant growth, with revenues rising by 16.8% and 11.5%, respectively. EBITDA also increased by 2.5%, amounting to RMB50,959 million, while profit attributable to shareholders rose by 6.8% to RMB8,708 million. Looking forward, China Tower aims to enhance its core competitiveness and continue its high-quality development, focusing on resource sharing and innovative solutions to meet customer needs and expand its market presence.

China Tower Revises Annual Caps Amid Business Expansion
Oct 16, 2025

China Tower Corporation Limited has announced revisions to its annual caps for several framework agreements due to anticipated increases in transaction volumes driven by business expansion. The company expects higher demands for value-added services, materials procurement, and non-telecommunications services, prompting adjustments to agreements with major telecom groups such as CMCC, CUC, and CTC. These revisions are expected to support the company’s growth and operational needs while maintaining existing terms and conditions.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$12.50 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Reports Revenue Growth in Q3 2025 with Strong Smart Tower and Energy Business Performance
Oct 16, 2025

China Tower Corporation Limited reported a 2.6% increase in operating revenue for the first three quarters of 2025, reaching RMB74,319 million. The company’s smart tower and energy businesses showed significant growth, with revenues rising by 16.8% and 11.5% respectively, while the traditional tower business saw a slight decline. The company’s profit attributable to owners increased by 6.8% to RMB8,708 million, indicating a positive financial performance and potential for future growth in diversified business areas.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$12.50 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Adjusts DAS Asset Lifespan, Reducing 2025 Depreciation Costs
Oct 16, 2025

China Tower Corporation Limited announced a change in accounting estimates for its DAS Assets, extending their estimated useful lives from 7 to 10 years, effective from July 1, 2025. This adjustment, driven by improvements in technical standards and asset management, is expected to reduce depreciation expenses by approximately RMB870 million for 2025, enhancing the accuracy of financial reporting and aligning with IFRS standards.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$12.50 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Schedules Board Meeting to Approve Q3 2025 Financial Results
Oct 2, 2025

China Tower Corporation Limited has announced that its board of directors will convene on October 16, 2025, to approve the financial results for the nine months ending September 30, 2025. This meeting is a significant event for the company as it will provide insights into its financial performance and could impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0788) stock is a Buy with a HK$13.00 price target. To see the full list of analyst forecasts on China Tower stock, see the HK:0788 Stock Forecast page.

China Tower Reports Steady Growth in 2025 Interim Results
Aug 5, 2025

China Tower Corporation Limited, a leading provider of telecommunications infrastructure and digital services in China, has reported its interim financial results for the first half of 2025, showcasing steady growth across its various business segments. The company operates primarily in the telecommunications sector, focusing on tower infrastructure, smart tower solutions, and energy services.

China Tower Announces Interim Dividend for 2025
Aug 5, 2025

China Tower Corporation Limited has announced an interim cash dividend of RMB 0.1325 per share for the six months ending June 30, 2025, with payment to be made on October 31, 2025. This announcement highlights the company’s commitment to returning value to shareholders, while also detailing the withholding tax implications for different categories of shareholders, which may affect the net dividend received by investors.

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 Reports Steady Growth in 2025 Interim Results
Aug 5, 2025

China Tower Corporation Limited announced steady growth in its 2025 interim results, with operating revenue reaching RMB49,601 million, a 2.8% increase year-on-year. The company’s EBITDA rose by 3.6% to RMB34,227 million, and profit attributable to shareholders increased by 8.0% to RMB5,757 million. Despite a decrease in net cash from operating activities, the company maintained a healthy financial position with a gearing ratio of 29.5%. The board resolved to continue an interim dividend of RMB0.13250 per share, reflecting a commitment to shareholder returns and high-quality development.

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.

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 25, 2025