China Tower (0788) AI Stock Analysis

• Market Cap: HK$195.71B
• Dividend Yield: 4.03%
• Average Volume (3M): 16.73M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.54
• Revenue Growth: 3.24%
• EPS Growth: 8.66%
• Country: HK
• Employees: 24,107
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 4,666,385,700
• 10 Day Avg. Volume: 13,896,425
• 30 Day Avg. Volume: 16,733,001
• PEG Ratio: 1.92
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 9.34
• 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: HK$12.92
• Price Target Upside: 8.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$14.00 ▲(17.94% Upside)

China Tower's overall stock score is driven by its strong financial performance and solid technical indicators, despite overbought signals. The valuation is reasonable, offering a decent dividend yield. 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 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 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 shows a healthy leverage position and strong equity base, though total debt remains substantial. Overall, the company exhibits robust financial health and growth potential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.13B	97.77B	94.01B	92.17B	86.58B	81.10B
Gross Profit	66.83B	81.21B	88.62B	86.31B	81.42B	69.18B
EBITDA	57.48B	53.42B	64.71B	64.06B	63.34B	59.88B
Net Income	11.16B	10.73B	9.75B	8.79B	7.33B	6.43B
Balance Sheet
Total Assets	331.13B	332.83B	326.01B	305.56B	323.26B	337.38B
Cash, Cash Equivalents and Short-Term Investments	8.67B	4.47B	5.18B	5.12B	6.47B	5.04B
Total Debt	92.64B	92.55B	94.63B	79.12B	101.30B	112.87B
Total Liabilities	130.77B	132.85B	128.31B	111.97B	133.91B	151.13B
Stockholders Equity	200.35B	199.98B	197.69B	193.59B	189.35B	186.25B
Cash Flow
Free Cash Flow	0.00	19.68B	-638.00M	36.47B	27.83B	19.55B
Operating Cash Flow	0.00	49.47B	32.84B	65.13B	60.50B	57.55B
Investing Cash Flow	0.00	-27.98B	-31.91B	-27.66B	-31.52B	-37.90B
Financing Cash Flow	0.00	-22.84B	-2.10B	-38.83B	-27.56B	-20.84B

China Tower Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0788, the sentiment is Neutral. The current price of 11.87 is below the 20-day moving average (MA) of 12.26, above the 50-day MA of 11.82, and above the 200-day MA of 11.35, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0788.

China Tower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0728	76 Outperform	HK$651.01B	13.54	7.66%	5.47%	0.53%	5.28%
0552	76 Outperform	$30.41B	7.81	8.00%	5.39%	1.54%	-2.09%
1883	73 Outperform	HK$9.36B	10.22	8.67%	7.40%	-0.62%	-5.10%
0788	72 Outperform	HK$195.71B	17.32	5.62%	4.03%	3.24%	8.66%
6823	72 Outperform	HK$89.47B	17.36	14.75%	2.89%	2.33%	2.41%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0008	49 Neutral	HK$45.60B	-159.84	―	1.68%	4.26%	36.68%

China Tower Corporate Events

China Tower Announces Director Resignation and Proposed Appointment

China Tower Corporation Limited has announced the resignation of Mr. Liu Guiqing from his role as a non-executive director due to changes in work responsibilities. The company has proposed the appointment of Mr. Luan Xiaowei, who brings extensive experience in the telecommunications industry, as a new non-executive director, pending shareholder approval at the upcoming extraordinary general meeting.

China Tower Proposes Governance Amendments Following Regulatory Changes

China Tower Corporation Limited has announced proposed amendments to its Articles of Association and the abolishment of its Supervisory Committee, in response to recent changes in the PRC Company Law and other regulatory updates. These changes, which are subject to shareholder approval, aim to align the company’s governance structure with new legal requirements and streamline its operations by transferring the Supervisory Committee’s functions to the audit committee under the Board. The proposed amendments will be considered at an extraordinary general meeting and class meetings scheduled for December 2025.

China Tower Revises Annual Caps Amid Business Expansion

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.

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

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.

China Tower Adjusts DAS Asset Lifespan, Reducing 2025 Depreciation Costs

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.

China Tower Schedules Board Meeting to Approve Q3 2025 Financial Results

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.