CITIC Telecom International Holdings (1883) AI Stock Analysis

• Market Cap: $8.96B
• Dividend Yield: 7.55%
• Average Volume (3M): 5.00M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.56
• Revenue Growth: -0.62%
• EPS Growth: -5.10%
• Country: HK
• Employees: 2,096
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.13
• Shares Outstanding: 3,700,891,400
• 10 Day Avg. Volume: 3,870,101
• 30 Day Avg. Volume: 4,996,381
• PEG Ratio: -0.39
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 7.46
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 6.18
• 1Y Price Target: $3.11
• Price Target Upside: 24.79% 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 scores well due to its strong valuation metrics, particularly its low P/E ratio and high dividend yield, which make it attractive to value and income investors. However, the stock's financial performance is hindered by declining revenue and profitability margins, which are significant concerns. Technical indicators suggest a neutral market sentiment, neither strongly positive nor negative.

Positive Factors

Cash Generation Ability

Strong cash generation relative to net income indicates robust operational efficiency, providing the company with flexibility to invest in growth opportunities or manage debt effectively.

Balance Sheet Health

A strong equity base and balanced debt levels suggest financial stability, enabling the company to withstand economic fluctuations and invest in strategic initiatives.

Operational Efficiency

High operational efficiency reflects the company's ability to manage costs effectively, supporting sustained profitability even in challenging market conditions.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests difficulties in expanding sales, which could impact future profitability and market competitiveness if not addressed.

Declining Profit Margins

A decline in net profit margin indicates reduced profitability, which may affect the company's ability to reinvest in business growth and maintain shareholder returns.

Free Cash Flow Decline

A significant decline in free cash flow generation capacity may limit the company's ability to fund new projects or manage financial obligations, potentially impacting long-term growth prospects.

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 generates revenue through multiple streams, predominantly from its core services in telecommunications, including fixed-line and mobile voice services, broadband internet services, and data center operations. The company also earns income from value-added services like cloud computing and managed services. A significant portion of its revenue comes from corporate clients who rely on its comprehensive telecom solutions for business operations. Additionally, CITIC Telecom benefits from strategic partnerships with other telecom operators and technology firms, enabling it to expand its service offerings and reach new markets, which further contributes to its earnings.

CITIC Telecom International Holdings Financial Statement Overview

Summary

CITIC Telecom International Holdings shows strong operational efficiency with a healthy gross profit margin and solid equity ratio. However, declining revenue and net profit margins, along with reduced free cash flow growth, pose concerns for 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.49B	9.57B	9.99B	10.11B	9.49B	8.92B
Gross Profit	3.27B	3.31B	2.19B	4.34B	4.03B	3.88B
EBITDA	1.79B	2.06B	2.64B	2.68B	2.52B	2.47B
Net Income	916.00M	910.00M	1.23B	1.19B	1.08B	1.02B
Balance Sheet
Total Assets	16.93B	17.45B	17.36B	18.18B	18.38B	18.34B
Cash, Cash Equivalents and Short-Term Investments	1.71B	1.61B	1.73B	1.99B	1.79B	1.52B
Total Debt	3.75B	4.23B	4.27B	4.97B	5.94B	6.40B
Total Liabilities	6.08B	6.63B	6.50B	7.71B	8.21B	8.53B
Stockholders Equity	10.75B	10.72B	10.76B	10.37B	10.10B	9.75B
Cash Flow
Free Cash Flow	1.59B	1.16B	1.57B	2.40B	1.86B	1.75B
Operating Cash Flow	1.98B	1.56B	1.88B	2.72B	2.39B	2.54B
Investing Cash Flow	-451.00M	-297.00M	-157.00M	-667.00M	-879.00M	-773.00M
Financing Cash Flow	-1.23B	-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: Neutral
• 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 2.44, above the 50-day MA of 2.48, and above the 200-day MA of 2.29, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 89.56 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
0315	―	HK$5.31B	11.09	9.18%	6.60%	0.52%	2.07%
0552	―	$32.90B	8.45	8.00%	4.96%	1.54%	-2.09%
1883	―	$8.96B	9.78	8.67%	7.55%	-0.62%	-5.10%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0008	―	HK$42.16B	-148.91	―	1.77%	4.26%	36.68%
0215	―	$5.25B	218.00	0.26%	6.87%	6.79%	―
1310	―	HK$10.09B	76.89	8.30%	4.66%	-2.02%	―

CITIC Telecom International Holdings Corporate Events

CITIC Telecom Renews Financial Services Agreements with CITIC Entities

CITIC Telecom International Holdings has announced the renewal of its Financial Services Framework Agreements with CITIC Bank and its subsidiaries, as well as other CITIC financial entities, for a term not exceeding three years. These agreements cover deposit, settlement, and credit services, with specific regulatory implications under Hong Kong’s Listing Rules. The deposit services are subject to reporting and approval requirements due to their scale, while the settlement and credit services are largely exempt from such requirements. An Independent Board Committee and an independent financial adviser have been appointed to guide shareholders on the deposit services.

The most recent analyst rating on (HK:1883) stock is a Buy with a HK$2.50 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 Extends Concession Agreement with Macau Government

CITIC Telecom International Holdings Limited has announced an extension of its Concession Agreement with the Macau Government, allowing continued use of concession assets until September 2027. The agreement outlines conditions for asset usage by other operators and involves CTM in managing applications for asset use, indicating ongoing collaboration with Macau’s development. The company has resumed trading on the Hong Kong Stock Exchange following the announcement.

The most recent analyst rating on (HK:1883) stock is a Buy with a HK$3.10 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 Trading Halt Pending Inside Information Release

CITIC Telecom International Holdings Limited has announced a trading halt on its shares effective from 9:00 a.m. on 18 September 2025. This suspension is pending the release of an announcement containing inside information, which could have significant implications for the company’s operations and market positioning.

The most recent analyst rating on (HK:1883) stock is a Buy with a HK$3.10 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 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.

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 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.

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 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.

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 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.

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.