CITIC Telecom International Holdings (1883) AI Stock Analysis

• Market Cap: $9.55B
• Dividend Yield: 9.28%
• Average Volume (3M): 5.46M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.56
• Revenue Growth: -0.62%
• EPS Growth: -5.10%
• Country: HK
• Employees: 2,096
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 0.13
• Shares Outstanding: 3,700,891,400
• 10 Day Avg. Volume: 5,570,048
• 30 Day Avg. Volume: 5,463,521
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 5.90
• 1Y Price Target: $3.12
• Price Target Upside: 20.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$2.50 ▼(-3.10% Downside)

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 Yield

Stock offers attractive yield of 7.3%; maintain BUY on stable outlook with new TP of HKD3.1, based on 12x FY26 PE.

Macau Operation

Macau operation demonstrated resilience, with steady growth in mobile and internet segments; international business also resumed positive growth.

Negative Factors

Profit Decline

Net profit fell 26.1% due to the shrinkage of international SMS.

Regulatory Risk

Macau’s fixed-line license and concessionary rights are subject to government review, which may create business uncertainty.

Revenue Performance

Revenue decreased by 1.7% y/y to HKD4,807mn, weaker than expected, due to lower enterprise business revenue.

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 through multiple streams primarily centered around its telecommunications services. The key revenue streams include the provision of voice services, such as international direct dialing and wholesale voice services, which cater to telecom operators globally. The company also earns significant income from its mobile services, offering mobile virtual network operator (MVNO) services in various markets. Data and internet services constitute another crucial revenue stream, providing broadband and dedicated internet access services to businesses and individuals. Additionally, CITIC Telecom benefits from its ICT services, including cloud computing, data center services, and network management solutions, which are increasingly in demand. Strategic partnerships and its status as a subsidiary of CITIC Group provide it with financial backing and access to a broad customer base, further enhancing its revenue generation capabilities.

CITIC Telecom International Holdings Financial Statement Overview

Summary

CITIC Telecom International Holdings demonstrates strong operational efficiency and cash generation, with a solid equity ratio and balanced debt levels. However, declining revenue and net income margins, along with reduced cash flow growth, raise concerns about future profitability.

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: Neutral
• Last Price: 2.58
• 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:1883, the sentiment is Neutral. The current price of 2.58 is below the 20-day moving average (MA) of 2.60, above the 50-day MA of 2.53, and above the 200-day MA of 2.28, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$9.55B	10.42	8.67%	9.28%	-0.62%	-5.10%
Sector *	60 Neutral	$44.01B	4.39	-12.81%	4.08%	1.86%	-42.71%
CUCSF	―	$4.11B	7.78	8.00%	5.34%	―	―
HKBNF	―	$942.22M	35.18	8.30%	6.20%	―	―
HTCTF	―	$686.00M	267.83	0.26%	5.99%	―	―
STTFF	―	$659.35M	8.94	9.25%	―	―	―
0008	49 Neutral	HK$40.69B	―	-14.69%	1.86%	4.26%	36.68%

CITIC Telecom International Holdings Corporate Events

CITIC Telecom Reports Stable Growth Amid Revenue Dip in H1 2025

CITIC Telecom International Holdings reported a slight decline in total revenue for the first half of 2025, with a 1.7% decrease compared to the previous year. Despite this, the company saw a 1.3% increase in profit attributable to equity shareholders. The Group maintained its leadership in Macau’s mobile and broadband markets, with significant advancements in 5G and broadband technologies, including the launch of F5.5G fiber broadband service. The company continues to enhance its digital infrastructure and expand its services to government and corporate customers, reinforcing its position as a leading telecommunications enterprise in the region.

CITIC Telecom Announces Interim Dividend for 2025

CITIC Telecom International Holdings Limited announced an interim dividend of HKD 0.06 per share for the six months ending June 30, 2025. The dividend will be paid on September 26, 2025, with a record date of September 12, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

CITIC Telecom Renews Key Telecoms Services Agreement

CITIC Telecom International Holdings has announced the renewal of its Telecoms Services Agreement with its subsidiary CEC for another three years, starting from August 2025 to August 2028. This agreement will continue to engage the Telecoms Services Provider, a wholly-owned subsidiary of CITIC Group, to provide various telecommunications services. The transactions under this agreement are classified as continuing connected transactions under the Listing Rules, requiring reporting and annual review but not independent shareholders’ approval. This renewal ensures the continuation of essential telecom services for CEC, strengthening CITIC Telecom’s operational capabilities and market positioning.

CITIC Telecom to Review Interim Results and Dividend Plans

CITIC Telecom International Holdings Limited has announced a board meeting scheduled for August 15, 2025, to approve its interim results for the first half of the year and consider an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and potential shareholder returns, impacting its market positioning and stakeholder interests.

CITIC Telecom Appoints New CEO to Drive Technological Innovation

CITIC Telecom International Holdings has announced the appointment of Mr. Wu Jun as the new Executive Director and Chief Executive Officer, effective July 25, 2025. Mr. Wu brings a wealth of experience in technology and business innovation, having previously held significant roles in CITIC Technology Development Co., Ltd. and China CITIC Bank Corporation Limited. His appointment is expected to enhance the company’s business development through technological innovation, potentially impacting its market positioning and stakeholder interests positively.

CITIC Telecom Announces Board Composition and Committee Roles

CITIC Telecom International Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to various board committees such as remuneration, nomination, audit, and finance. This announcement reflects the company’s commitment to strong corporate governance and structured leadership, which is crucial for maintaining stakeholder confidence and ensuring effective decision-making processes.

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.