Investment Rating - The report assigns an "Accumulate" rating for China Tower (00788) as a first-time coverage [6]. Core Viewpoints - China Tower, established in 2014, is the world's largest communication infrastructure service provider, backed by the three major telecom operators in China, ensuring a solid industry leadership position [1][15]. - The company has adopted a "one body, two wings" strategy, focusing on operator business while expanding into cross-industry and energy operations, leading to steady revenue growth [2][24]. - The tower business remains a stable cash flow source, contributing over 70% of revenue, while the indoor distribution and energy businesses are rapidly growing [3][4]. Summary by Sections Company Overview - China Tower was established to address the issue of redundant construction in the telecom industry, providing site space, supporting facilities, maintenance, and power services [15][18]. - As of June 2025, the company has over 2.1 million sites and total assets exceeding 330 billion yuan [1][15]. Business Strategy - The "one body, two wings" strategy integrates operator business as the core, with intelligent connection and energy businesses as the wings, enhancing growth potential [2][24]. - The company has seen a shift in revenue structure, with the tower business's share decreasing from 93.4% in 2019 to 76.2% in H1 2025, while the contributions from intelligent connection and energy businesses are increasing [25][24]. Financial Performance - Revenue has grown from 71.82 billion yuan in 2018 to an expected 97.77 billion yuan in 2024, with a compound annual growth rate (CAGR) of 5.28% [2][28]. - Net profit has increased significantly from 2.65 billion yuan in 2018 to an expected 10.73 billion yuan in 2024, with a CAGR of 26.25% [2][31]. - The company has a high dividend payout ratio, increasing from 14.98% in 2018 to 68.19% in 2024, reflecting a commitment to shareholder returns [5][45]. Business Segments - The tower business is entering a phase of stock operation, with site sharing levels improving; as of June 2025, the number of tower sites reached 2.119 million [3][81]. - The indoor distribution business has seen rapid growth, with revenue increasing from 1.82 billion yuan in 2018 to 8.43 billion yuan in 2024, maintaining a CAGR of 29% [93]. - The energy business, focusing on battery swapping, has expanded rapidly, with over 320 cities offering services and a market share nearing 50% [4][34]. Market Position - China Tower leads the global market in terms of revenue, with 97.77 billion yuan in 2024, while also facing competition from American and Indian tower companies [53][56]. - The company benefits from a stable ownership structure, primarily held by the three major telecom operators, ensuring a solid operational foundation [20][24].

Core Insights - The Hang Seng Index closed down 22 points, reflecting a volatile performance in the Hong Kong stock market, with significant fluctuations throughout the trading day [3][4] - The technology sector negatively impacted the market, with major companies like Xiaomi, Tencent, and Meituan experiencing declines [4] - The overall market saw a net inflow of capital from the north, amounting to 158.21 million [3] Market Performance - The Hang Seng Index opened lower at 25,890 points, peaked at 26,062 points, but ultimately closed at 25,888 points, down 0.09% [3] - Among 88 blue-chip stocks, 46 rose while 40 fell, indicating mixed performance across sectors [4] - The trading volume for the day was 27.54 billion [3] Technology Sector Developments - The Hong Kong Science Park Company announced the development of the INNOPOLE project, aimed at fostering innovation and economic growth in Hong Kong, with an initial phase covering approximately 2.5 hectares [7] - The Hong Kong Stock Exchange reported a significant increase in the number of hard technology companies applying for listings, with about 280 companies currently in the application process, half of which are technology firms [8] Smartphone Market Insights - In the third quarter, smartphone shipments in mainland China decreased by 2.75% year-on-year, with Vivo leading the market share at 18% despite a 9.23% decline in shipments [9] - The overall smartphone market has seen consecutive declines, but the rate of decline is narrowing, suggesting potential recovery in the upcoming quarter [9] Company-Specific News - Xtep International reported low single-digit growth in retail sales for the third quarter, with inventory turnover ranging from 4 to 4.5 months [11] - Hansoh Pharmaceutical entered a licensing agreement with Roche, receiving an upfront payment of $80 million (approximately 624 million HKD) and potential milestone payments totaling up to $1.45 billion (approximately 1,131 million HKD) [12] - China Tower reported a 6.81% year-on-year increase in profit for the first nine months, with total revenue growing by 2.58% [13] - China Pacific Insurance expects a net profit increase of approximately 40% to 60% for the first three quarters, driven by improved operational management and capital market performance [14]

Core Viewpoint - CICC maintains the profit forecast for China Tower (00788) for 2025 and 2026, with a target price of HKD 14.00, indicating a 20.1% upside potential from the current stock price [1] Financial Performance - For the first three quarters of 2025, the company's revenue reached CNY 74.32 billion, a year-on-year increase of 2.6%, and the net profit attributable to shareholders was CNY 8.71 billion, up 6.8%, aligning with CICC's expectations [2] - In Q3 2025, revenue was CNY 24.72 billion, a year-on-year increase of 2.1%, while the net profit attributable to shareholders was CNY 2.95 billion, up 4.5% [2] Business Segments - Revenue growth in the two wings business remains strong, while tower business revenue is slowing down. For 1-3Q25, revenue from tower, indoor distribution, smart connection, and energy businesses grew by -0.7%, +11.3%, +16.8%, and +11.5% respectively; in Q3 2025, the growth rates were -1.2%, +9.8%, +13.2%, and +15.9% [3] - The operator business revenue in Q3 2025 decreased by 0.2%, likely due to cost control measures by operators leading to a decline in non-rental service revenue from the tower business [3] EBITDA and Profitability - EBITDA growth has slowed, with a year-on-year increase of 2.5% for the first three quarters, while net profit attributable to shareholders grew by 6.8%. In Q3 2025, EBITDA was CNY 16.73 billion, up 0.4% year-on-year, and net profit was CNY 2.95 billion, up 4.5% [4] - The slowdown in internal profit growth in Q3 2025 compared to the first half of 2025 is attributed to increased costs and expenses, including credit impairment losses [4] Accounting Changes - The company announced a change in accounting estimates, extending the depreciation period for indoor distribution assets from 7 years to 10 years, which is expected to reduce the depreciation expense for 2025 by approximately CNY 870 million [5] - This change is based on the optimization of daily operations and maintenance systems for indoor distribution, as well as considerations of the actual usage of assets [5]

Core Viewpoint - CICC maintains the profit forecast for China Tower (00788) for 2025 and 2026, with a target price of HKD 14.00, indicating a 20.1% upside potential from the current stock price [1] Financial Performance - For the first three quarters of 2025, the company's revenue reached CNY 74.32 billion, a year-on-year increase of 2.6%, and the net profit attributable to shareholders was CNY 8.71 billion, up 6.8%, aligning with CICC's expectations [2] - In Q3 2025, revenue was CNY 24.72 billion, a year-on-year increase of 2.1%, while the net profit attributable to shareholders was CNY 2.95 billion, up 4.5% [2] Business Segments - Revenue growth in the two wings business remains strong, while tower business revenue shows signs of slowing down. For 1-3Q25, revenue growth rates for various segments were: tower business -0.7%, indoor distribution +11.3%, smart connection +16.8%, and energy +11.5%. In Q3 2025, the growth rates were: tower business -1.2%, indoor distribution +9.8%, smart connection +13.2%, and energy +15.9% [3] - The operator business revenue in Q3 2025 decreased by 0.2%, likely due to cost control measures by operators leading to a decline in non-rental service revenue from the tower business. As of the end of Q3, the number of tower sites reached 2.137 million, a 2.1% increase from the beginning of the year, with an average of 1.81 tenants per site, unchanged from the beginning of the year [3] EBITDA and Profitability - EBITDA growth has slowed, potentially due to credit impairment impacts, while net profit showed good year-on-year growth. For the first three quarters, EBITDA increased by 2.5%, and net profit grew by 6.8%. In Q3 2025, EBITDA was CNY 16.73 billion, a year-on-year increase of 0.4%, and net profit was CNY 2.95 billion, up 4.5% [4] - The slowdown in internal profit growth in Q3 2025 compared to the first half of 2025 is attributed to rising costs and expenses, including credit impairment losses [4] Accounting Changes - The company announced a change in accounting estimates, extending the depreciation period for indoor distribution assets from 7 years to 10 years, expected to reduce the depreciation expense for 2025 by approximately CNY 870 million. This change is based on improved operational and maintenance practices and aligns with the actual usage of assets [5] - The adjustment in depreciation policy is expected to enhance the company's profit and dividend base for 2025, thereby boosting shareholder returns [5]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 China Tower Corporation Limited 中國鐵塔股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份編號：0788） 修訂持續關連交易之年度上限 及 持續關連交易續期 茲提述本公司日期為2023年11月27日之公告，內容有關（其中包括）與各通信運 營商集團公司的增值服務框架協議、與中國移動集團公司的綜合服務框架協議 (2024-2026)、與中國聯通集團公司的服務供應框架協議(2024-2026)、與中國電 信集團公司的物資採購框架協議(2024-2026)及其項下之各自年度上限。 (1) 修訂與各通信運營商集團公司的增值服務框架協議的年度上限 由於本公司正積極拓展通信運營商設備維護等服務，董事會預期本集團向通信 運營商集團公司所提供的增值服務的年度交易金額將會增加，並預期將超過(i) 與中國移動集團公司的增值服務框架協議(2024-2026)項下截至2026年12月 ...

Core Viewpoint - China Tower Corporation reported a revenue of RMB 74.319 billion for the first three quarters, reflecting a year-on-year growth of 2.6% [1] Financial Performance - EBITDA for the first three quarters reached RMB 50.959 billion, with a year-on-year increase of 2.5% [1] - Profit attributable to shareholders was RMB 8.708 billion, showing a year-on-year growth of 6.8% [1] Business Segment Performance - Revenue from operator business amounted to RMB 63.432 billion, a slight increase of 0.5% year-on-year [1] - Tower business revenue was RMB 56.509 billion, experiencing a decline of 0.7% [1] - Indoor distributed antenna system revenue reached RMB 6.923 billion, growing by 11.3% year-on-year [1] - Smart connection business generated revenue of RMB 7.093 billion, marking a year-on-year increase of 16.8% [1] - Energy business revenue was RMB 3.424 billion, reflecting a year-on-year growth of 11.5% [1]

Core Insights - China Tower Corporation (00788) reported a revenue of RMB 74.319 billion for the first three quarters of 2025, representing a year-on-year growth of 2.6% [1] - EBITDA reached RMB 50.959 billion, with a year-on-year increase of 2.5% [1] - Profit attributable to shareholders was RMB 8.708 billion, showing a year-on-year growth of 6.8% [1] Revenue Breakdown - Revenue from operator business amounted to RMB 63.432 billion, reflecting a year-on-year growth of 0.5% [1] - Revenue from smart connection business was RMB 7.093 billion, with a significant year-on-year increase of 16.8% [1] - Revenue from energy business reached RMB 3.424 billion, marking a year-on-year growth of 11.5% [1] Operational Metrics - As of September 30, 2025, the number of tower sites was 2.137 million, and the number of tenants reached 3.863 million, with a net increase of 72,000 tenants compared to the end of the previous year [1] - The average number of tenants per tower site was 1.81 [1] - The contribution of two wings business revenue to total revenue increased from 12.6% in the same period last year to 14.2% [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 China Tower Corporation Limited 中國鐵塔股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份編號：0788） 2025年首三季度未經審核的主要運營數據 ❖ 營業收入為人民幣743.19億元，同比增長2.6%；其中： 中國鐵塔股份有限公司（「本公司」或「公司」）董事會（「董事會」）宣佈本公司截至 2025年9月30日止期間若干主要的未經審核合併財務數據與業務數據。 1 • 運營商業務收入為人民幣634.32億元，同比增長0.5%；其中，塔類業 務收入為人民幣565.09億元，同比下降0.7%；室內分佈式天線系統 （「室分」）業務收入為人民幣69.23億元，同比增長11.3% • 智聯業務收入為人民幣70.93億元，同比增長16.8% • 能源業務收入為人民幣34.24億元，同比增長11.5% ❖ EBITDA為人民幣509.59億元，同比增長2.5% ❖ 歸屬於 ...

China Tower Corporation Limited 中國鐵塔股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份編號：0788） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 會計估計變更 中國鐵塔股份有限公司（「本公司」）根據香港聯合交易所有限公司證券上市規則 （「上市規則」）第13.09條及香港法例第571章證券及期貨條例第XIVA部項下內幕 消息條文而作出本公告。 一、會計估計變更情況概述 本公司自2015年起開始承接通信運營商的樓宇和隧道通信信號覆蓋需求， 向其提供室內覆蓋業務服務。室分系統資產主要由有源設備、無源器件、天 線、線纜等構成（統稱「室分資產」），參考當時行業主要執行標準，室分資產 的折舊年限設定為7年。隨着室分設備領域國產化技術標準持續完善（2022 年以來行業陸續公佈了多項室內覆蓋系統專項標準），信號覆蓋強度、網絡 容量承載能力、設備穩定性及兼容性等核心性能指標顯著提升，特別是本公 司針對室分系統建設 ...

Core Viewpoint - Morgan Stanley's research report indicates that Chinese telecom companies are expected to have a lackluster performance in Q3, with only a slight year-on-year increase in industry service revenue, reflecting a slowdown compared to Q2 due to potential US-China tariff impacts [1] Industry Summary - The overall performance of Chinese telecom companies in Q3 is projected to be mediocre, with service revenue growth slowing down compared to the previous quarter [1] - The outlook for Q4 appears uncertain, as traditional business segments continue to face deflationary pressures and weak macroeconomic conditions [1] - AI-related business has not yet significantly contributed to new growth momentum within the industry [1] Company Summary - China Mobile's target price remains at HKD 90, maintaining an "Overweight" rating [1] - China Telecom's target price has been lowered from HKD 6.5 to HKD 6, while still holding an "Overweight" rating [1] - China Unicom's target price is maintained at HKD 9.5, with an "Overweight" rating [1] - China Tower's target price remains at HKD 12, also with an "Overweight" rating [1]