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CITIC Telecom International Holdings Limited (HK:1883)
:1883

CITIC Telecom International Holdings (1883) AI Stock Analysis

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HK

CITIC Telecom International Holdings

(OTC:1883)

Rating:71Outperform
Price Target:
CITIC Telecom International Holdings scores a 71, reflecting strong financial stability and attractive valuation with a high dividend yield. Despite these strengths, the company faces challenges with declining revenue and net income margins, affecting overall profitability. The technical analysis indicates a neutral trend, suggesting limited short-term price movement.
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 (1883) vs. iShares MSCI Hong Kong ETF (EWH)

CITIC Telecom International Holdings Business Overview & Revenue Model

Company DescriptionCITIC Telecom International Holdings (1883) is a leading telecommunications service provider headquartered in Hong Kong. The company specializes in offering a wide range of telecommunications services, including international telecommunications, internet access, and enterprise solutions. With a strong presence in the Asia-Pacific region, CITIC Telecom leverages its extensive network infrastructure to provide reliable and high-quality communication services to carriers, enterprises, and consumer markets.
How the Company Makes MoneyCITIC 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
78
Positive
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
72
Positive
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
65
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
9.57B9.99B10.11B9.49B8.92B
Gross Profit
3.31B2.19B4.34B4.03B3.88B
EBIT
1.25B1.68B1.76B1.61B1.55B
EBITDA
2.06B2.64B2.68B2.52B2.47B
Net Income Common Stockholders
910.00M1.23B1.19B1.08B1.02B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.61B1.73B1.99B1.79B1.51B
Total Assets
17.45B17.36B18.18B18.38B18.34B
Total Debt
4.23B4.27B4.97B5.94B6.40B
Net Debt
2.62B2.55B2.99B4.15B4.89B
Total Liabilities
6.63B6.50B7.71B8.21B8.53B
Stockholders Equity
10.72B10.76B10.37B10.10B9.75B
Cash FlowFree Cash Flow
1.16B1.57B2.40B1.86B1.75B
Operating Cash Flow
1.56B1.88B2.72B2.39B2.54B
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 Price2.34
Price Trends
50DMA
2.21
Positive
100DMA
2.19
Positive
200DMA
2.16
Positive
Market Momentum
MACD
0.02
Negative
RSI
66.93
Neutral
STOCH
71.30
Neutral
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 2.34 is above the 20-day moving average (MA) of 2.27, above the 50-day MA of 2.21, and above the 200-day MA of 2.16, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.93 is Neutral, neither overbought nor oversold. The STOCH value of 71.30 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.83B10.069.25%8.21%-0.35%86.29%
77
Outperform
HK$31.65B8.098.19%5.51%-0.99%-1.64%
71
Outperform
$8.40B9.358.46%8.30%-4.15%-26.13%
62
Neutral
HK$40.54B-14.69%7.30%3.33%36.39%
62
Neutral
$4.72B833.330.06%8.01%-2.33%
62
Neutral
$11.72B10.43-7.10%2.91%7.41%-7.94%
50
Neutral
$7.31B55.694.51%6.48%-2.02%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1883
CITIC Telecom International Holdings
2.34
-0.06
-2.34%
HK:0008
PCCW Limited
5.20
1.59
44.04%
HK:0315
SmarTone Telecommunications Holdings
4.39
0.96
27.95%
HK:1310
HKBN
4.97
2.60
109.97%
HK:0552
China Communications Services
4.61
0.67
16.98%
HK:0215
Hutchison Telecommunications Hong Kong Holdings
1.00
0.07
7.87%

CITIC Telecom International Holdings Corporate Events

CITIC Telecom International Holdings Passes All Resolutions at AGM
May 21, 2025

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
Apr 15, 2025

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.

CITIC Telecom Announces Strategic Board Reshuffle
Mar 24, 2025

CITIC Telecom International Holdings has announced several changes to its Board and Board Committees effective March 24, 2025. These changes include the retirement of Mr. Liu Jifu as a Non-executive Director, the appointment of Mr. Yang Feng as a new Non-executive Director, and the inclusion of Mr. Luo Xicheng and Ms. Wang Hua in the Remuneration and Nomination Committees, respectively. These adjustments are part of the company’s ongoing efforts to strengthen its leadership and governance structure, potentially impacting its strategic direction and stakeholder engagement.

CITIC Telecom Announces Board Composition and Roles
Mar 24, 2025

CITIC Telecom International Holdings Limited has announced the composition of its board of directors and the roles each member will play in various board committees. This announcement is crucial for stakeholders as it outlines the leadership structure and governance, potentially impacting the company’s strategic direction and operational efficiency.

CITIC Telecom Establishes Remuneration Committee for Transparent Governance
Mar 24, 2025

CITIC Telecom International Holdings Limited has established a Remuneration Committee to oversee and recommend policies related to the remuneration of its directors and senior management. The committee, consisting mainly of independent non-executive directors, is tasked with ensuring a transparent and fair remuneration process, aligning with corporate goals and industry standards, which could impact the company’s governance and stakeholder confidence.

CITIC Telecom Proposes Auditor Change to KPMG
Mar 12, 2025

CITIC Telecom International Holdings Limited has announced a proposed change of auditor, with PwC set to retire at the conclusion of the upcoming annual general meeting. The company plans to appoint KPMG as its new auditor, a decision supported by the Audit Committee to enhance audit independence and align with corporate governance practices. This change is expected to maintain the company’s high-quality audit standards and is subject to shareholder approval at the AGM.

CITIC Telecom Faces Financial Challenges Amid Digital Expansion
Mar 12, 2025

CITIC Telecom International Holdings reported a challenging financial year in 2024, with a 4.1% decrease in total revenue and a 26.1% drop in profit attributable to equity shareholders. Despite these financial setbacks, the company has been actively expanding its digital and intelligent services, particularly in the Macau market, where it holds a significant market share in both mobile and broadband sectors. The launch of new services such as the 5.5G service and innovative platforms like ‘GameOnTheGo’ and ‘Dr. Easy Smart Healthcare Platform’ highlight the company’s strategic focus on integrating new-generation digital technologies to drive growth and maintain its leading position.

CITIC Telecom Announces Final Dividend for 2024
Mar 12, 2025

CITIC Telecom International Holdings Limited has announced a final ordinary cash dividend of HKD 0.128 per share for the financial year ending December 31, 2024. This announcement reflects the company’s stable financial performance and commitment to delivering shareholder value, with the dividend set for payment on June 20, 2025, following shareholder approval in May.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.