China Tower (0788) AI Stock Analysis

• Market Cap: $187.02B
• Dividend Yield: 4.21%
• Average Volume (3M): 21.63M
• Price to Earnings (P/E): 16.6
• 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): 0.36
• Shares Outstanding: 4,666,385,700
• 10 Day Avg. Volume: 34,244,935
• 30 Day Avg. Volume: 21,629,884
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 2.95
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 5.47
• 1Y Price Target: $12.99
• Price Target Upside: 13.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: HK$13.00 ▲(13.24% Upside)

China Tower's strong financial performance and reasonable valuation are the primary drivers of its overall score. The technical analysis indicates moderate market momentum, supporting the stock's stability. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Negative Factors

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 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 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 is well-positioned in the telecommunications industry with 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	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: 11.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 11.48 is above the 20-day moving average (MA) of 11.44, above the 50-day MA of 11.42, and above the 200-day MA of 11.00, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 67.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0552	77 Outperform	32.14B	8.25	7.94%	5.14%	1.54%	-2.09%
0728	75 Outperform	684.09B	14.24	7.30%	5.22%	0.00%	0.00%
1883	73 Outperform	9.44B	10.30	8.49%	7.37%	-0.62%	-5.10%
0788	72 Outperform	$187.02B	16.55	5.62%	4.21%	3.24%	8.66%
6823	70 Outperform	88.91B	17.26	13.24%	2.88%	2.33%	2.41%
0008	54 Neutral	41.23B	-145.63	-0.88%	1.83%	4.26%	36.68%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

China Tower Corporate Events

China Tower Announces Interim Dividend for 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

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

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

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

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

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.