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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

(OTC:0788)

Rating:69Neutral
Price Target:
HK$12.50
▲(7.85% Upside)
China Tower's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical analysis indicates mixed signals with potential short-term weakness. The absence of earnings call data and corporate events does not impact the score.
Positive Factors
Business Growth
DAS and Two Wings business continued to grow by double digits, reaching RMB4.7bn (+12% YoY) and RMB13.4bn (+15% YoY).
Capital Structure
China Tower announced a stock consolidation (1 for 10) to optimize its capital structure and potentially enhance shareholders’ value.
Shareholder Returns
The Company declared a 1H25 dividend of RMB0.13 per share, increasing shareholder returns.
Negative Factors
Capital Expenditure
China telcos’ capex is guided to shrink another 9% to RMB289.8bn this year on top of a 9% decrease in 2024.
Cost Pressures
Legacy business to remain stable, facing ongoing headwinds due to continuous cost optimization pressures from China.
Growth Potential
The overall growth upside for China Tower is considered limited, leading to a maintained HOLD rating.

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. The company primarily engages in the construction, maintenance, and operation of telecommunication towers and related infrastructure. China Tower plays a vital role in supporting the country's major mobile network operators by offering shared infrastructure solutions, which help reduce costs and improve efficiency in network deployment.
How the Company Makes MoneyChina Tower makes money primarily through leasing space on its telecommunication towers and infrastructure to mobile network operators and other clients. The company generates revenue by charging these clients for the use of its extensive network of towers, rooftops, and other structures. This shared infrastructure model allows multiple operators to utilize the same tower, significantly reducing capital and operational expenses for clients. Additional revenue streams include providing ancillary services such as site resources and power services to enhance the operational efficiency of their clients' networks. Strategic partnerships with major telecommunications companies and government initiatives to expand network coverage contribute positively to the company's earnings.

China Tower Financial Statement Overview

Summary
China Tower's financial performance is strong, driven by consistent revenue growth, high profit margins, and solid cash flow management. The balance sheet shows healthy leverage and equity positions, although total debt is substantial. Overall, the company demonstrates robust financial health and 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 Profit81.21B88.62B86.31B81.42B75.29B
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 Price11.59
Price Trends
50DMA
11.49
Positive
100DMA
11.21
Positive
200DMA
10.95
Positive
Market Momentum
MACD
-0.04
Positive
RSI
53.75
Neutral
STOCH
62.43
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 11.59 is above the 20-day moving average (MA) of 11.53, above the 50-day MA of 11.49, and above the 200-day MA of 10.95, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 62.43 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$32.34B8.278.19%5.04%-0.99%-1.64%
75
Outperform
€706.22B15.347.35%4.73%0.61%5.43%
73
Outperform
HK$97.32B18.8914.75%6.09%2.33%2.41%
73
Outperform
$9.62B10.578.46%9.24%-4.15%-26.13%
69
Neutral
$187.51B16.605.62%4.45%3.24%8.66%
62
Neutral
HK$41.85B-14.69%6.90%4.26%36.68%
61
Neutral
$41.49B-3.35-10.67%4.00%2.69%-42.23%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0788
China Tower
11.59
2.47
27.13%
HK:0008
PCCW Limited
5.54
1.64
42.05%
HK:0728
China Telecom
5.98
1.82
43.78%
HK:0552
China Communications Services
4.73
0.98
26.07%
HK:1883
CITIC Telecom International Holdings
2.59
0.67
35.11%
HK:6823
HKT and HKT
12.93
3.70
40.13%

China Tower Corporate Events

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.

China Tower Announces Board Meeting to Approve Interim Results
Jul 24, 2025

China Tower Corporation Limited has announced that its Board of Directors will convene on August 5, 2025, to approve the company’s interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial health and potential shareholder returns, reflecting its operational performance and strategic direction in the telecommunications infrastructure sector.

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 Composition and Committee Roles
Jul 23, 2025

China Tower Corporation Limited has announced the composition of its board of directors and the roles within its five board committees. This announcement outlines the leadership structure and governance framework, which is crucial for stakeholders to understand the company’s strategic direction and operational oversight.

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 Key Board Appointments at 2025 EGM
Jul 23, 2025

China Tower Corporation Limited held its first extraordinary general meeting of 2025, where significant changes in its board composition were approved. The meeting resulted in the appointment of Mr. Miao Shouye as a non-executive director and Mr. Pei Zhenjiang and Mr. Wen Bugao as independent non-executive directors. These appointments, approved by a substantial majority of shareholders, are expected to influence the strategic direction of the company. The changes in the board are likely to impact the company’s governance and operational strategies, potentially affecting its market positioning and stakeholder interests.

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 EGM to Appoint New Directors
Jul 7, 2025

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
Jun 30, 2025

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
Jun 30, 2025

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
May 20, 2025

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
May 20, 2025

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
May 20, 2025

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.

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: Aug 06, 2025