CITIC Telecom International Holdings (1883) AI Stock Analysis

• Market Cap: HK$9.47B
• Dividend Yield: 7.32%
• Average Volume (3M): 3.66M
• Price to Earnings (P/E): 10.3
• 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: 2,740,504
• 30 Day Avg. Volume: 3,657,894
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.95
• Revenue Forecast (FY): HK$75.30B

• Rating: 73 Outperform
• Price Target: HK$2.50 ▼(-2.72% Downside)

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 (1883) is a leading telecommunications service provider based in Hong Kong, primarily focused on offering a wide range of telecom, internet, and data services. The company operates in various sectors, including mobile communications, fixed-line services, and international telecommunications. CITIC Telecom serves both corporate and individual customers, providing solutions such as voice and data transmission, cloud computing, and value-added services, with a strong emphasis on enhancing connectivity and digital transformation.

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 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	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: 2.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.57 is above the 20-day moving average (MA) of 2.57, above the 50-day MA of 2.52, and above the 200-day MA of 2.37, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0315	81 Outperform	$5.27B	11.02	9.18%	6.74%	0.52%	2.07%
0552	76 Outperform	$33.59B	8.63	8.00%	5.20%	1.54%	-2.09%
1883	73 Outperform	HK$9.47B	10.34	8.67%	7.32%	-0.62%	-5.10%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	$5.30B	220.00	0.26%	6.46%	6.79%	―
1310	57 Neutral	$11.00B	49.67	8.55%	4.90%	4.48%	1820.51%
0008	49 Neutral	HK$42.86B	-151.37	―	1.67%	4.26%	36.68%

CITIC Telecom International Holdings Corporate Events

CITIC Telecom Announces EGM for Financial Services Agreements

CITIC Telecom International Holdings Limited has announced an extraordinary general meeting to be held on December 17, 2025, to discuss and approve several financial services framework agreements with CITIC Bank and its subsidiaries. These agreements involve the provision of deposit services to the Group, which are expected to enhance the company’s financial operations and strengthen its strategic partnerships within the financial sector.

CITIC Telecom Delays Circular Dispatch for Financial Services Agreements

CITIC Telecom International Holdings Limited announced a delay in the dispatch of a circular related to discloseable transactions and continuing connected transactions under the 2025 Financial Services Framework Agreements. The circular, which includes important details for shareholders, will now be sent by 28 November 2025, indicating the company’s need for additional time to finalize necessary information.

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.

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.

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.