Core Viewpoint - The article highlights the integration of communication infrastructure and digital applications by China Tower, showcasing its role in enhancing urban management, emergency response, and public services in Chongqing through innovative projects and technologies [1][16]. Group 1: Digital Life Project - The "Digital Life Project" in Tongnan District integrates multiple departments for disaster prevention and management, utilizing data sharing across meteorology, water resources, forestry, and emergency management [2][4]. - The project has established 95 AI monitoring points along the Fujiang and Qiongjiang rivers, creating a comprehensive monitoring network that transitions from passive response to proactive prevention [4]. Group 2: Communication Infrastructure in Tourism - The "Three Gorges Summit" scenic area faced signal issues affecting visitor experience, which were resolved by China Tower through the establishment of communication base stations, enhancing connectivity for tourists [6][9]. - The integration of high-definition cameras on communication towers has improved operational efficiency and visitor engagement in the scenic area [6]. Group 3: Urban Management Innovations - In Beibei District, China Tower has implemented a drone-based inspection system to address urban management challenges, enabling real-time monitoring and coordination among multiple departments [10][12]. - The drone system can autonomously inspect 90% of the district's land and water areas, significantly improving the efficiency of urban management tasks [12]. Group 4: Smart Streetlight Solutions - China Tower has reduced the number of streetlight poles on Zhongshan Fourth Road from over 110 to 46 by integrating 22 functions into a single smart light pole, enhancing urban management and reducing operational costs [13][15]. - The smart poles include features such as environmental monitoring, traffic management, and public safety functions, contributing to a more efficient urban infrastructure [15]. Group 5: Overall Achievements - Over the past decade, China Tower has constructed over 2.7 million communication base stations, with a significant increase in the sharing rate of new towers from 14.3% to 85% [16]. - In Chongqing, the sharing rate has risen from 14% to 87%, leading to a reduction of nearly 57,000 redundant communication towers and saving the industry 2.78 billion yuan [16].

Core Viewpoint - The article highlights the significant role of China Tower Corporation in enhancing digital infrastructure in Chongqing, contributing to the city's digital transformation and economic development through the construction of communication towers and 5G networks [1][8]. Group 1: Infrastructure Development - China Tower Corporation is recognized as a key player in the construction of information communication infrastructure, particularly in the context of 5G "new infrastructure" [1]. - The company has collaborated with telecom enterprises to build over 40 base stations along the Yangtze River, achieving near-complete communication coverage in the region [7]. - In the past ten years, China Tower has constructed a total of 3,033 telecom universal service base stations, aiding in bridging the "digital divide" and supporting rural revitalization efforts [7]. Group 2: Enhancing Communication Services - The company has addressed communication issues in popular tourist areas, such as the "Three Gorges Peak," by conducting comprehensive signal tests and successfully improving network coverage [3][4]. - The installation of new communication towers has significantly improved the quality of service for local residents and businesses, leading to increased customer traffic and operational efficiency [4][7]. - Enhanced communication capabilities have allowed local residents, such as those living on boats, to experience better connectivity, facilitating their daily activities and business operations [4][7]. Group 3: Emergency Management and Safety - China Tower has implemented a digital monitoring project in the Tongnan District, utilizing AI technology to enhance emergency management efficiency across various sectors [8]. - The project includes 95 AI monitoring points that integrate data from multiple departments, enabling rapid response to emergencies such as fire incidents [8]. - The system allows for quick detection and verification of emergencies, significantly improving response times and ensuring effective management of potential risks [8][11].

Group 1 - The core viewpoint of the article highlights the performance of the China Securities Hong Kong Stock Connect TMT Index, which has seen a 10.93% increase over the past month and a 22.64% increase year-to-date [1] - The index consists of 50 listed companies in the TMT sector selected from the Hong Kong Stock Connect, reflecting the overall performance of related industry companies [1] - The top ten weighted companies in the index include Xiaomi Group-W (21.12%), Tencent Holdings (14.91%), and China Mobile (14.28%) [1] Group 2 - The index is adjusted semi-annually, with changes implemented on the next trading day following the second Friday of June and December [2] - In special circumstances, the index may undergo temporary adjustments, such as removing companies that are delisted or adding new TMT companies that rank in the top ten by market capitalization [2] - The index's holdings are entirely composed of companies listed on the Hong Kong Stock Exchange, with 52.50% in communication services and 47.50% in information technology [1]

Core Viewpoint - A 5.5 magnitude earthquake occurred in Shigatse, Tibet, prompting China Tower's Tibet branch to initiate a level three emergency response to ensure communication services are maintained [1] Group 1: Earthquake Details - The earthquake struck on May 12 at 5:11 AM, with a depth of 10 kilometers, located at latitude 28.76° N and longitude 87.543° E [1] - The China Earthquake Networks Center confirmed the earthquake's magnitude and details [1] Group 2: Impact on Communication Infrastructure - China Tower operates 186 communication tower sites in the affected area of Lazhi County [1] - Two sites are currently without power, and two sites have exited service due to the earthquake [1] Group 3: Emergency Response Actions - The Tibet branch of China Tower has activated a level three emergency response [1] - The company is coordinating closely with emergency management departments and telecom operators to address communication service needs [1] - Maintenance personnel, vehicles, and generators have been arranged to respond promptly to service demands [1]

Core Viewpoint - The China Securities TMT Index has shown a recent decline of 17.71% over the past month, but has increased by 12.13% over the last three months and 10.56% year-to-date [1]. Group 1: Index Performance - The China Securities TMT Index is composed of 50 listed companies in the TMT sector selected from the Hong Kong Stock Connect, reflecting the overall performance of related industry companies [1]. - The index was established on November 14, 2014, with a base value of 3000.0 points [1]. Group 2: Top Holdings - The top ten holdings of the China Securities TMT Index are as follows: Xiaomi Group-W (18.11%), China Mobile (15.07%), Tencent Holdings (14.6%), SMIC (8.64%), Kuaishou-W (5.93%), CK Hutchison (4.43%), China Telecom (3.21%), Lenovo Group (2.69%), China Unicom (2.08%), and China Tower (2.0%) [1]. Group 3: Sector Allocation - The sector allocation of the index holdings is as follows: Electronics (26.47%), Telecommunications Services (25.86%), Media (25.27%), Semiconductors (10.76%), Computers (8.45%), and Communication Equipment and Technology Services (3.18%) [2]. Group 4: Index Adjustment Mechanism - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2]. - In special circumstances, the index may undergo temporary adjustments, such as when a sample company is delisted or when a new TMT company meets the criteria for inclusion [2].

Financial Performance - The company's operating revenue for Q1 2025 reached RMB 24.771 billion, a year-on-year increase of 3.3%[4] - Operating business revenue was RMB 21.224 billion, up 1.1% year-on-year; tower business revenue decreased by 0.4% to RMB 18.877 billion, while indoor distributed antenna system revenue grew by 15.2% to RMB 2.347 billion[3] - Smart connection business revenue increased by 17.1% to RMB 2.312 billion, and energy business revenue rose by 19.6% to RMB 1.145 billion[3] - EBITDA for Q1 2025 was RMB 17.295 billion, reflecting a 4.2% increase year-on-year, with an EBITDA margin of 69.8%[5] - Profit attributable to shareholders was RMB 3.024 billion, an increase of 8.6% compared to the previous year[4] Operational Metrics - As of March 31, 2025, the number of tower sites reached 2.108 million, with 3.82 million tenants, a net increase of 29,000 tenants from the end of the previous year[5] - The proportion of revenue from the two wings business increased from 12.2% to 14.0% year-on-year[5] Strategic Initiatives - The company plans to enhance core competitiveness and seize opportunities from initiatives like "dual-gigabit" network construction and "carbon neutrality" goals in 2025[6] - The company aims to optimize its battery swap network and expand its user base while promoting comprehensive energy solutions[6] Financial Data Disclaimer - The financial data presented is based on internal records and has not been reviewed by auditors, cautioning shareholders against undue reliance on this data[7]

Financial Performance - In 2024, the company achieved operating revenue of RMB 97.772 billion, a year-on-year increase of 4.0%[5] - EBITDA for 2024 reached RMB 66.559 billion, reflecting a growth of 4.7% compared to the previous year, with an EBITDA margin of 68.1%[22] - Profit attributable to shareholders was RMB 10.729 billion, marking a 10.0% increase from 2023[5] - The company reported a net cash flow from operating activities of RMB 49.468 billion, an increase of RMB 16.628 billion year-on-year[22] - Operating profit reached RMB 16.33 billion, reflecting a year-on-year growth of 12.6%[83] - Operating cash flow increased significantly by 50.6% to RMB 49.47 billion[83] Revenue Breakdown - In 2024, the operator business achieved revenue of RMB 84.119 billion, a year-on-year increase of 2.4%[25] - The tower business generated revenue of RMB 75.689 billion in 2024, with a year-on-year growth of 0.9% and a total of 2.094 million tower sites, an increase of 48,000 sites from the previous year[26] - The indoor distribution business reported revenue of RMB 8.430 billion, reflecting an 18.1% year-on-year growth, with a cumulative coverage area of 12.68 billion square meters, up 24.9%[28] - The two wings business achieved revenue of RMB 13.388 billion, accounting for 13.7% of total revenue, an increase of 1.5 percentage points year-on-year[29] - The smart connection business generated revenue of RMB 8.911 billion, a year-on-year increase of 22.4%, with the tower vision business contributing RMB 5.539 billion, representing 62.2% of smart connection revenue[30] - The energy business reached revenue of RMB 4.477 billion, a 6.2% year-on-year growth, with the battery swap business accounting for RMB 2.500 billion, or 55.8% of energy revenue[31] Capital Expenditures and Investments - Capital expenditures for 2024 amounted to RMB 31.941 billion, slightly up by 0.7% from the previous year[5] - Capital expenditure for new site construction and shared renovations was RMB 17.972 billion, up 5.4% year-on-year, accounting for 56.3% of total capital expenditure[105] - The company increased R&D investment by 40% and the number of R&D personnel by 60% in 2024, with patent applications and authorizations rising by 58% and 68% respectively compared to 2023[32] Shareholder Returns - The proposed final dividend for the year is RMB 0.30796 per share, leading to a total dividend of RMB 0.41696 per share for the year, an increase of 11.5%[22] - The company aims to distribute at least 50% of the annual distributable profits as dividends, considering factors such as operating performance and cash flow[167] - The final dividend, if approved, is expected to be paid around June 30, 2025[169] Tower and Tenant Growth - The total number of tower sites managed by the company reached 2.094 million, an increase of 2.3% year-on-year[11] - The number of tower tenants increased to 3.791 million, representing a growth of 3.6% compared to the previous year[11] - The average annual revenue per tower site was RMB 40,870, up by 1.8% from 2023[11] - The company expanded its tower site sharing level, with the average number of tenants per site increasing from 1.68 to 1.72[26] Strategic Initiatives - The company aims to enhance its core competitiveness and maintain high-quality development through its "one body, two wings" strategic layout[46] - The company is focusing on optimizing its battery swap network and expanding its user base to strengthen its leading position in the battery swap market[37] - The company actively promoted green energy applications, including photovoltaic power generation and energy storage systems, to fulfill its "dual carbon" responsibilities[35] Management and Governance - The company continues to expand its board with experienced professionals to enhance governance and strategic oversight[141] - The management team includes professionals with advanced degrees and qualifications, ensuring a high level of expertise in financial and operational matters[149][153][156] - The ongoing recruitment of independent directors reflects the company's commitment to strong corporate governance and accountability[136] Market Presence and Coverage - The company operates in 31 provinces in mainland China, focusing on communication tower infrastructure and energy application services[164] - The total coverage of subway lines reached 13,126 kilometers, growing by 12.9% compared to the previous year[62] - The total coverage of high-speed rail tunnels reached 16,189 kilometers, marking a 30.1% increase year-on-year[62] Share Capital and Structure - The company's registered capital totals RMB 10,000 million, with initial share subscriptions from China Mobile, China Unicom, and China Telecom at 40%, 30.1%, and 29.9% respectively[182] - As of December 31, 2024, the total issued share capital is RMB 176,008,471,024, consisting of 176,008,471,024 shares with a par value of RMB 1.00 each[185] - The shareholding structure shows that domestic shares account for approximately 73.49% of the total issued capital, while H shares account for 26.51%[185]

Investment Rating - The report maintains a "Buy" rating for China Tower (0788.HK) [3]. Core Views - The company's performance is driven by its "One Body, Two Wings" strategy, leading to steady growth and an increased focus on shareholder returns through a higher dividend payout ratio [1]. - In 2024, the company reported a revenue of RMB 97.772 billion, a year-on-year increase of 4.0%, with a net profit of RMB 10.729 billion, reflecting a 10% growth [1]. - The EBITDA for 2024 reached RMB 66.559 billion, up 4.7%, with an EBITDA margin of 68.1% [1]. Summary by Sections Revenue and Profitability - The operator business generated revenue of RMB 84.119 billion, growing by 2.4%, while the two wings business saw revenue of RMB 13.388 billion, up 16.4% [1]. - The company achieved a significant improvement in cash flow, with operating cash flow of RMB 49.468 billion, a year-on-year increase of RMB 16.628 billion [1]. Operator Business - The tower business revenue was RMB 75.689 billion, a 0.9% increase, with the number of tower sites increasing to 2.094 million [1]. - The indoor distribution business revenue reached RMB 8.430 billion, growing by 18.1%, with significant expansions in coverage areas [1]. Two Wings Business - The smart connection business generated RMB 8.911 billion, a 22.4% increase, focusing on sectors like emergency services and agriculture [1]. - The energy business revenue was RMB 4.477 billion, up 6.2%, while the battery swap business revenue reached RMB 2.5 billion, growing by 20.9% [1]. Shareholder Returns - The company increased its dividend payout ratio, distributing a total dividend of RMB 0.41696 per share for 2024, an 11.5% increase from 2023 [1]. - The depreciation and amortization as a percentage of revenue decreased from 52.2% in 2023 to 51.4% in 2024, indicating effective investment management [1]. Profit Forecast and Valuation - The net profit forecast for 2025 and 2026 has been adjusted downwards by 10% and 14% to RMB 11.726 billion and RMB 18.123 billion, respectively, with a new forecast for 2027 at RMB 19.2 billion [1]. - The report emphasizes the potential for significant profit growth in 2026 due to the expiration of certain tower depreciations [1].

Investment Rating - The report maintains a "Hold" rating for China Tower Corporation with a target price raised to HKD 13.7, reflecting an increase in valuation from 3.1x to 4.0x based on the 2025 fiscal year EV/EBITDA [1][7][3]. Core Views - China Tower's fiscal year 2024 performance met expectations, with revenue increasing by 4.0% year-on-year to RMB 97.8 billion, and net profit rising by 10.0% to RMB 10.7 billion, slightly above internal forecasts but below Bloomberg consensus [1][2]. - The traditional tower business, accounting for 77% of revenue, saw a modest growth of 0.9%, while the indoor distribution and two wings businesses experienced double-digit growth, achieving RMB 84 billion (up 18%) and RMB 134 billion (up 16%) respectively [1][2]. - The company announced a share consolidation to optimize its capital structure and enhance shareholder value [1]. Financial Summary - Revenue projections for FY25E are set at RMB 101.8 billion, with a growth rate of 4.1% [2][10]. - EBITDA is expected to reach RMB 69.1 billion in FY25E, reflecting a 3.7% increase [2][10]. - Net profit is forecasted to grow by 13.0% to RMB 12.1 billion in FY25E, with earnings per share projected at RMB 0.69 [2][10]. - The company plans to maintain a dividend of RMB 0.42 per share for FY24, indicating a payout ratio of 76% [7][1]. Shareholder Structure - Major shareholders include Citigroup with 9.0% and GIC with 7.0% [4]. Stock Performance - The current stock price is HKD 12.24, with a potential upside of 11.9% to the target price [3]. - The stock has shown a 26.2% absolute return over the past six months [5]. Business Segments - The traditional tower business is expected to face continued pressure due to low single-digit growth forecasts for domestic telecom operators, while the indoor distribution and two wings businesses are anticipated to maintain double-digit growth rates [7][1]. - The indoor distribution business is projected to grow by 14.0% and 11.6% in FY25E and FY26E respectively, driven by market opportunities [7]. - The two wings business, particularly the Tower Intelligence segment, is expected to see significant revenue growth due to projects related to national disaster warning and agricultural protection [7].

Investment Rating - The report maintains a "Hold" rating for China Tower Corporation with a target price raised to HKD 13.7, reflecting an increase in valuation from 3.1x to 4.0x based on the 2025 fiscal year EV/EBITDA [1][7][3]. Core Views - China Tower's fiscal year 2024 performance met expectations, with revenue increasing by 4.0% year-on-year to RMB 97.8 billion and net profit rising by 10.0% to RMB 10.7 billion, slightly above internal forecasts but below Bloomberg consensus [1][2]. - The traditional tower business, accounting for 77% of revenue, saw a modest growth of 0.9%, while the indoor distribution and two wings businesses experienced double-digit growth, achieving RMB 84 billion (up 18%) and RMB 134 billion (up 16%) respectively [1][2]. - The company announced a stock consolidation plan to optimize its capital structure and enhance shareholder value [1]. Financial Summary - Revenue projections for FY25E are set at RMB 101.8 billion, with a growth rate of 4.1%, followed by RMB 104.4 billion in FY26E and RMB 108.4 billion in FY27E [2][10]. - EBITDA is expected to reach RMB 69.1 billion in FY25E, with a net profit forecast of RMB 12.1 billion, reflecting a 13.0% year-on-year growth [2][10]. - The company plans to maintain a dividend of RMB 0.42 per share for FY24, indicating a payout ratio of 76% [7][10]. Shareholder Structure - Major shareholders include Citigroup with 9.0% and GIC with 7.0% [4]. Stock Performance - The stock has shown a 13.3% increase over the past three months, although it has underperformed relative to the market by 7.5% [5].