CITIC Telecom International Holdings (1883) AI Stock Analysis

• Market Cap: HK$9.22B
• Dividend Yield: 9.76%
• Average Volume (3M): 5.98M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.53
• Revenue Growth: -4.15%
• EPS Growth: -26.13%
• Country: HK
• Employees: 2,096
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.24
• Shares Outstanding: 3,700,891,400
• 10 Day Avg. Volume: 4,564,553
• 30 Day Avg. Volume: 5,980,957
• PEG Ratio: 0.79
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.07
• 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$2.59
• Price Target Upside: 4.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$2.50 ▲(0.40%Upside)

CITIC Telecom International Holdings is supported by strong operational efficiency and cash generation, alongside an attractive valuation due to its low P/E ratio and high dividend yield. However, declining revenue and net margins, as well as technical indicators suggesting overbought conditions, present risks that temper the overall score.

Positive Factors

Dividend

The valuation is undemanding with attractive dividend yield of 9%+.

Market Position

Citic’s subsidiary CTM is an integrated local telecom operator in Macau with a dominating position in the wireline and broadband segments, and a leading position in the mobile segment with 50% market share.

Negative Factors

Regulatory Risk

The fixed-line license and concessionary right is subject to government’s review which may result in business uncertainty.

CITIC Telecom International Holdings Business Overview & Revenue Model

Company Description

CITIC Telecom International Holdings Limited, an investment holding company, provides telecommunications services worldwide. The company provides carrier services, such as mobile roaming signaling SCCP, single IMSI multiple number, pre-paid roaming, MVNE, GMVNO, USSD, IP packet exchange, and short message service (SMS) firewall; Internet services; and international voice services, including voice hubbing service in handling roaming service for mobile and fixed line operators and data roaming services for mobile operators; SMS services; datamall; big data; and Internet of Things services. It also offers enterprise solutions, including network connectivity, data center, cloud computing, information security, enterprise mobile services, and voice and information services; and Internet-based communication services, such as Communication Platform as a Service for handset manufacturers and OTT operators. In addition, the company builds the infrastructure and applications of Digital Macau; and provides communications services for local airports, entertainment facilities, and events, such as the Macau Grand Prix, as well as offers local and roaming communications services to individual customers. Further, it offers mobile services, which includes local 4G, roaming, greater bay, and OTT TV services; local and international fixed line telephone; sales of handsets; and WIFI hotspots and home broadband services. The company was formerly known as CITIC 1616 Holdings Limited and changed its name to CITIC Telecom International Holdings Limited in 2010. CITIC Telecom International Holdings Limited was incorporated in 1997 and is headquartered in Kwai Chung, Hong Kong. CITIC Telecom International Holdings Limited operates as a subsidiary of CITIC Limited.

How the Company Makes Money

CITIC Telecom International Holdings generates revenue primarily through its telecommunications services, which include international voice services, mobile roaming, and data services. The company earns substantial income by providing voice and data transmission services to telecom operators and enterprises. Additionally, CITIC Telecom offers managed services and system integration solutions, enhancing its revenue streams. Strategic partnerships with global carriers and technology partners also play a critical role in expanding its service offerings and customer base, thus contributing to its financial performance. The company's focus on innovation and customer-centric solutions further supports its revenue growth in a competitive telecommunications market.

CITIC Telecom International Holdings Financial Statement Overview

Summary

CITIC Telecom International Holdings exhibits a stable financial position with strong operational efficiency and cash generation. However, declining revenue and net income margins pose concerns for future profitability. The company balances its debt and equity well, maintaining financial stability, but needs to address revenue growth challenges.

Income Statement

CITIC Telecom International Holdings shows a healthy gross profit margin of 34.57% for 2024, with a consistent EBIT margin of 26.43% indicating strong operational efficiency. However, the net profit margin has decreased from 12.33% in 2023 to 9.50% in 2024, reflecting a decline in profitability. The revenue growth rate is negative at -4.15% from 2023 to 2024, suggesting challenges in expanding sales.

Balance Sheet

The company maintains a solid equity ratio of 61.41%, indicating financial stability with a strong equity base. The debt-to-equity ratio is moderate at 0.39, suggesting a balanced approach to leveraging debt. However, the return on equity has decreased from 11.44% in 2023 to 8.49% in 2024, showing a decline in return efficiency.

Cash Flow

CITIC Telecom's operating cash flow to net income ratio is favorable at 1.71, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 1.27, showing strong free cash flow generation. However, the free cash flow growth rate is -26.43% from 2023 to 2024, highlighting reduced cash flow generation capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.57B	9.99B	10.11B	9.49B	8.92B
Gross Profit	3.31B	2.19B	4.34B	4.03B	3.88B
EBITDA	2.06B	2.64B	2.68B	2.52B	2.47B
Net Income	910.00M	1.23B	1.19B	1.08B	1.02B
Balance Sheet
Total Assets	17.45B	17.36B	18.18B	18.38B	18.34B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.73B	1.99B	1.79B	1.51B
Total Debt	4.23B	4.27B	4.97B	5.94B	6.40B
Total Liabilities	6.63B	6.50B	7.71B	8.21B	8.53B
Stockholders Equity	10.72B	10.76B	10.37B	10.10B	9.75B
Cash Flow
Free Cash Flow	1.16B	1.57B	2.40B	1.86B	1.75B
Operating Cash Flow	1.56B	1.88B	2.72B	2.39B	2.54B
Investing Cash Flow	-297.00M	-157.00M	-667.00M	-879.00M	-773.00M
Financing Cash Flow	-1.32B	-1.90B	-2.20B	-1.60B	-1.58B

CITIC Telecom International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.49
• 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:1883, the sentiment is Positive. The current price of 2.49 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.31, and above the 200-day MA of 2.20, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 74.77 is Negative, neither overbought nor oversold. The STOCH value of 92.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1883.

CITIC Telecom International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1883	73 Outperform	HK$9.22B	10.13	8.46%	9.76%	-4.15%	-26.13%
Sector *	50 Neutral	C$2.97B	1.65	-61.70%	2.76%	11.24%	-12.42%
CUCSF		$3.81B	7.59	8.19%	5.53%	―	―
HKBNF		$947.66M	35.18	4.51%	6.16%	―	―
HTCTF		$626.19M	600.00	0.06%	11.10%	―	―
STTFF		$628.32M	8.94	9.25%	13.00%	―	―
0008	52 Neutral	HK$42.24B	―	-14.69%	10.43%	3.33%	36.39%

CITIC Telecom International Holdings Corporate Events

CITIC Telecom International Holdings Passes All Resolutions at AGM

CITIC Telecom International Holdings Limited successfully held its Annual General Meeting on May 21, 2025, where all proposed resolutions were passed by shareholders. Key resolutions included the adoption of audited accounts, declaration of a final dividend, re-election of directors, appointment of KPMG as auditors, and granting of mandates for share issuance and repurchase. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational and strategic growth.

The most recent analyst rating on (HK:1883) stock is a Buy with a HK$2.90 price target. To see the full list of analyst forecasts on CITIC Telecom International Holdings stock, see the HK:1883 Stock Forecast page.

CITIC Telecom Announces 2025 Annual General Meeting

CITIC Telecom International Holdings Limited has announced its upcoming Annual General Meeting scheduled for May 21, 2025, where key resolutions will be discussed. These include the consideration of audited accounts, declaration of a final dividend, re-election of directors, and appointment of auditors. The meeting will also address granting a general mandate to the directors for issuing additional shares, which could influence the company’s capital structure and shareholder value.