Financial Performance - In the first half of 2024, the company's operating revenue reached RMB 48.247 billion, a year-on-year increase of 3.8%[4] - EBITDA for the first half of 2024 was RMB 33.045 billion, reflecting a 3.2% increase, with an EBITDA margin of 68.5%[7] - The profit attributable to shareholders was RMB 5.330 billion, up 10.1% year-on-year, with a net profit margin of 11.0%[7] - Operating cash flow for the first half of 2024 significantly improved to RMB 32.830 billion, an increase of 184.1% compared to the previous year[7] - Capital expenditures amounted to RMB 13.729 billion, a 7.1% increase from the previous year[4] - The operating profit for the first half of 2024 was RMB 8.146 billion, with net profit attributable to shareholders reaching RMB 5.330 billion, reflecting a growth of 10.1% year-on-year[26] - The total comprehensive income for the period was RMB 5,330 million, consistent with the profit for the period, indicating stable performance[37] Revenue Breakdown - The revenue from the operator business was RMB 42.121 billion, growing by 3.0% year-on-year[10] - The revenue from indoor distribution business increased by 21.6% year-on-year, reaching RMB 4.164 billion[11] - In the first half of 2024, the company's two-wing business achieved revenue of RMB 6.005 billion, accounting for 12.4% of total revenue, an increase of 0.9 percentage points year-on-year[12] - The smart connection business generated revenue of RMB 3.982 billion, a year-on-year growth of 17.6%, with the tower vision business contributing RMB 2.509 billion, representing 63.0% of smart connection revenue[13] - The energy business reported revenue of RMB 2.023 billion, a year-on-year increase of 2.4%, with the battery swap business generating RMB 1.163 billion, accounting for 57.5% of energy business revenue[13] - The tower business generated RMB 37,957 million in revenue, up 1.27% from RMB 37,481 million in the previous year[46] - Major customers, including China Mobile, China Telecom, and China Unicom, contributed RMB 42,403 million, accounting for 87.9% of total revenue, slightly down from 89.0% in the previous year[48] Financial Position - As of June 30, 2024, total assets were RMB 316.747 billion, with total liabilities of RMB 120.259 billion, resulting in a debt-to-asset ratio of 38.0%[28] - The company’s net financial expenses for the first half of 2024 were RMB 1.236 billion, a decrease of 7.9% compared to the previous year[25] - The company reported a decrease in non-current liabilities to RMB 55,015 million from RMB 64,379 million, a reduction of 14.56%[34] - The cash and cash equivalents increased to RMB 4,049 million from RMB 3,955 million at the end of 2023, showing a growth of 2.37%[33] - The company has a total of RMB 65,493 million in borrowings due as of June 30, 2024, compared to RMB 73,115 million as of December 31, 2023, reflecting a decrease of approximately 10.5%[81] Shareholder Returns - The company plans to distribute an interim dividend of RMB 0.01090 per share, with a commitment to distribute no less than 75% of the annual distributable profit in cash[8] - The company paid dividends of RMB 6,536 million during the period, reflecting a commitment to returning value to shareholders[39] - The proposed interim dividend for the six months ended June 30, 2024, is RMB 0.01090 per share, totaling approximately RMB 1,905 million[74] - The interim dividend, if approved, is expected to be paid around November 29, 2024[118] Operational Developments - The number of tower sites reached 2.070 million by the end of June 2024, an increase of 24,000 sites from the end of the previous year[10] - The company continues to focus on expanding its tower services and energy business, leveraging its existing infrastructure to enhance service offerings[40] - The company is focusing on key technology breakthroughs in areas such as 5G/6G, IoT, and edge computing, establishing six major technology innovation centers[14] - The company aims to enhance its core competitiveness and create greater returns for shareholders and society in the second half of 2024[16] Corporate Governance - The company has maintained high levels of corporate governance and complied with the Corporate Governance Code during the reporting period[115] - The Audit Committee has reviewed the accounting standards and practices adopted by the company and discussed the financial reporting matters for the six months ended June 30, 2024[114] - The company has adopted a securities trading code for directors and employees that meets or exceeds the standards set by the Stock Exchange[116] Risks and Forward-Looking Statements - The company emphasizes that past performance does not guarantee future results, and any forward-looking statements involve risks and uncertainties[122] - The company will not assume any liability for any forward-looking statements that may not materialize or become incorrect[122]

Investment Rating - The report maintains a "Hold" rating for China Tower (788 HK) with a target price adjusted to HKD 0.95, reflecting a potential downside of 3.2% from the current price of HKD 0.98 [1][3]. Core Insights - The three major telecom operators in China have reduced capital expenditures by 5.4% in 2024, shifting their investment focus from 5G deployment to high-growth areas like cloud computing and computing power [1]. - Traditional communication business revenue growth is slowing, with China Mobile, China Unicom, and China Telecom reporting growth rates of 2.5%, 2.1%, and 4.3% respectively in the first half of 2024 [1]. - Cost control measures have led to a decrease in operating costs as a percentage of revenue for the telecom operators, which is expected to impact China Tower's traditional communication business [1]. - China Tower's traditional tower revenue is projected to grow at a modest rate of around 1% year-on-year for 2024 and 2025, while its indoor distribution and two wings businesses (Smart Connection and Energy) are expected to achieve double-digit growth [1]. Financial Summary - Revenue for FY24 is estimated at RMB 97,865 million, with a year-on-year growth of 4.1%, and projected to reach RMB 101,661 million in FY25 with a growth of 3.9% [2][7]. - Net profit for FY24 is forecasted to be RMB 10,543 million, reflecting an 8.1% increase, and is expected to grow to RMB 12,302 million in FY25, representing a 16.7% increase [2][7]. - Earnings per share (EPS) is projected to be RMB 6.03 for FY24 and RMB 7.04 for FY25, with respective growth rates of 8.1% and 16.7% [2][7]. Business Segments - Tower business accounted for 79% of China Tower's total revenue in the first half of 2024, maintaining stability with quarter-on-quarter growth rates of 1.7% and 0.3% in the first two quarters [1]. - The Smart Connection business saw a revenue increase of 17.6% year-on-year, while the Energy business grew by 2.4% in the same period, with the tower's Smart Connection revenue growing by 20.9% to RMB 2.5 billion [1].

Investment Rating - The investment rating for China Tower is maintained as "Buy" [6] Core Views - The company reported a revenue growth of 3.8% year-on-year for H1 2024, with a net profit attributable to shareholders increasing by 10.1% [2] - The company has proposed its first interim dividend, reflecting a strong commitment to shareholder returns [10] - The operational performance is expected to remain robust, driven by the ongoing expansion of 5G networks and effective cost management [2][3] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 48.247 billion yuan, an increase of 3.8% year-on-year, and an EBITDA of 33.045 billion yuan, up 3.2% [2] - The net profit attributable to shareholders reached 5.33 billion yuan, marking a 10.1% increase year-on-year, with a net profit margin improvement of 0.6 percentage points to 11.0% [2] Business Segments - The operator business generated revenue of 42.121 billion yuan in H1 2024, a 3.0% increase year-on-year, with tower business revenue at 37.957 billion yuan, up 1.3%, and indoor distribution business revenue at 4.164 billion yuan, up 21.6% [2] - The two wings business segment reported revenue of 6.005 billion yuan, a 12.0% increase year-on-year, with smart connection business revenue growing by 17.6% [4] Cost Management and Cash Flow - The company effectively controlled operating costs, with total operating costs increasing by only 2.7% year-on-year, leading to a significant improvement in cash flow [5][9] - Capital expenditures for H1 2024 were 13.729 billion yuan, a 7.1% increase year-on-year, while operating cash flow surged by 184.1% to 32.830 billion yuan [9] Future Outlook - Revenue projections for 2024-2026 are estimated at 98.578 billion yuan, 102.961 billion yuan, and 107.269 billion yuan, with corresponding net profits of 10.927 billion yuan, 12.890 billion yuan, and 20.737 billion yuan [11]

Financial Performance - The company's operating revenue reached RMB 48.247 billion, a year-on-year increase of 3.8%[3] - EBITDA amounted to RMB 33.045 billion, reflecting a 3.2% year-on-year growth, with an EBITDA margin of 68.5%[3] - Profit attributable to shareholders was RMB 5.330 billion, up 10.1% year-on-year, resulting in a net profit margin of 11.0%[3] - Cash flow from operating activities improved significantly, totaling RMB 32.830 billion, an increase of RMB 21.275 billion year-on-year[3] - Free cash flow reached RMB 19.101 billion, up RMB 20.368 billion year-on-year[3] - The group's operating revenue for the six months ended June 30, 2024, was RMB 48,247 million, an increase of 3.8% from RMB 46,461 million in the same period of 2023[14] - The operating profit for the same period was RMB 8,146 million, up 9.9% from RMB 7,414 million year-on-year[14] - The net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 5,330 million, representing a 10.1% increase compared to RMB 4,841 million in the previous year[14] - Basic earnings per share for the period was RMB 0.0305, compared to RMB 0.0277 in the previous year, indicating a growth of 10.09%[27] Revenue Breakdown - Revenue from the tower business was RMB 37.957 billion, a year-on-year increase of 1.3%[5] - Revenue from indoor distributed antenna systems (室分) was RMB 4.164 billion, showing a significant growth of 21.6% year-on-year[6] - In the first half of 2024, the company's two wings business achieved revenue of RMB 6.005 billion, accounting for 12.4% of total revenue, an increase of 0.9 percentage points year-on-year[7] - The intelligent connection business generated revenue of RMB 3.982 billion, a year-on-year growth of 17.6%, with the tower visual connection business contributing RMB 2.509 billion, representing 63.0% of the intelligent connection revenue[7] - The energy business reported revenue of RMB 2.023 billion, a year-on-year increase of 2.4%, with the tower battery swap business accounting for RMB 1.163 billion, or 57.5% of the energy business revenue[8] - Revenue from the three major telecom operators in China accounted for 87.9% of total revenue, slightly down from 89.0% in the previous year[22] Assets and Liabilities - Total assets reached RMB 316.747 billion, with interest-bearing liabilities of RMB 85.985 billion, resulting in a net debt leverage ratio of 29.4%, down 2.0 percentage points from the end of last year[3] - The total assets as of June 30, 2024, amounted to RMB 316,747 million, a decrease from RMB 326,007 million at the end of 2023[16] - Non-current assets were RMB 240,527 million, down from RMB 247,924 million at the end of 2023[15] - The total liabilities decreased to RMB 120,259 million from RMB 128,313 million at the end of 2023[16] - As of June 30, 2024, the company's total assets were RMB 316.747 billion, with total liabilities of RMB 120.259 billion, resulting in a debt-to-asset ratio of 38.0%, a decrease of 1.4 percentage points from the beginning of the year[51] Capital Expenditures and Cash Flow - Capital expenditures in the first half of the year amounted to RMB 13.729 billion, an increase of 7.1% year-on-year, with site construction and shared renovation capital expenditures reaching RMB 8.035 billion, up 18.1%[50] - The net cash flow from operating activities for the first half of the year was RMB 32.830 billion, an increase of RMB 21.275 billion year-on-year, while free cash flow was RMB 19.101 billion, up RMB 20.368 billion[50] Dividends and Shareholder Returns - The company plans to distribute an interim dividend of RMB 0.01090 per share, with a commitment to distribute no less than 75% of the annual distributable profits in cash[3][4] - The company proposed an interim dividend of RMB 0.01090 per share for the six months ended June 30, 2024, totaling approximately RMB 1,905 million[29] - The company will distribute a proposed interim dividend for 2024, subject to a 10% corporate income tax withholding for H-share non-resident shareholders[56] Corporate Governance and Management - The board welcomed Mr. Chen Li as the new executive director and general manager, highlighting his extensive management experience in the telecommunications industry[12] - The company is committed to high levels of corporate governance and has taken measures to comply with relevant regulations following recent board changes[53] Strategic Focus and Future Plans - The company is focusing on key technology breakthroughs and has established a list of ten major tasks for future industries and intelligent operations, enhancing its R&D efforts[9] - The company is building six major technology innovation centers, focusing on key areas such as 5G/6G, IoT, and edge computing[9] - The company aims to enhance its core competitiveness and continue to create greater returns for shareholders, customers, and society[11] - The company plans to leverage opportunities from 5G-A deployment and the "dual gigabit" network initiative to drive stable growth in its operator business[11] - The company is focusing on expanding its electric vehicle battery swap business and enhancing customer service experience to maintain market leadership[12] Social Responsibility - The company emphasizes the importance of social responsibility and has been actively involved in green development initiatives and disaster response efforts[10] Legal and Compliance - The company has not engaged in any major litigation or arbitration during the reporting period, indicating a stable legal standing[54]

Investment Rating - The report maintains a "Buy" investment rating for China Tower (00788 HK) with a target price of HKD 1.20 [1]. Core Insights - China Tower recorded a robust performance in Q1 2024, with revenue of RMB 23.974 billion, representing a year-on-year growth of 3.3%, and a net profit attributable to shareholders of RMB 2.784 billion, up 11.1% year-on-year, aligning with market expectations [1]. - The depreciation of a significant number of towers is expected to end in Q4 2025, which will enhance net profit. The report anticipates that the company will not reduce its dividend payout ratio, leading to a substantial increase in dividends in 2026 [2]. - The report highlights that the company's tower business revenue saw slight growth due to an increase in the number of tower sites and tenants, driven by strong indoor coverage demand and robust growth in the smart tower business [1][2]. Summary by Sections Financial Performance - For Q1 2024, China Tower's revenue was RMB 23.974 billion, a 3.3% increase year-on-year, while net profit was RMB 2.784 billion, reflecting an 11.1% year-on-year growth [1]. - The depreciation expense accounted for 52.2% of total revenue in 2023, indicating its significant impact on profitability [2]. Future Outlook - The depreciation of the acquired tower assets from 2015 will conclude in Q4 2025, providing a strong impetus for profit growth in 2026 [2]. - The report expects double-digit net profit growth for the company in 2024 due to effective cost control and increasing demand for services [1]. Dividend Expectations - The report anticipates a significant increase in dividends for 2026, as the company is expected to maintain its dividend payout ratio [1][2].

Financial Performance - Operating revenue for Q1 2024 reached RMB 23.974 billion, a year-on-year increase of 3.3%[2] - Revenue from operator business was RMB 20.984 billion, up 2.2% year-on-year; tower business revenue was RMB 18.946 billion, a 0.6% increase[2] - Indoor distributed antenna system (室分) revenue grew by 19.8% year-on-year to RMB 2.038 billion[2] - Smart connection business revenue increased by 21.0% year-on-year to RMB 1.974 billion[2] - EBITDA for Q1 2024 was RMB 16.597 billion, reflecting a 3.0% year-on-year growth[2] - Profit attributable to shareholders was RMB 2.784 billion, an increase of 11.1% year-on-year[2] Assets and Liabilities - Total assets as of March 31, 2024, were RMB 321.368 billion, down from RMB 326.007 billion at the end of 2023[2] - Total liabilities decreased to RMB 120.888 billion from RMB 128.313 billion at the end of 2023[2] Operational Growth - The number of tower sites reached 2.059 million, with a net increase of 43,000 tenants year-on-year[3] Strategic Goals - The company aims to enhance core competitiveness and pursue high-quality development in energy business through innovative solutions and market expansion strategies[3]

Financial Performance - In 2023, the company achieved operating revenue of RMB 94.009 billion, a 2.0% increase from RMB 92.170 billion in 2022[4] - The company's EBITDA for 2023 was RMB 63.551 billion, reflecting a 1.1% growth year-on-year[10] - Profit attributable to shareholders reached RMB 9.750 billion, marking an 11.0% increase compared to RMB 8.787 billion in 2022[4] - The company reported a net cash flow from operating activities of RMB 32.840 billion for 2023[10] - The company’s total operating revenue reached RMB 94.009 billion in 2023, reflecting a year-on-year growth of 2.0%, while net profit attributable to shareholders was RMB 9.750 billion, up 11.0%[29] - Total operating expenses for 2023 were RMB 79,507 million, representing 84.6% of total revenue, a decrease of 1.0 percentage points from the previous year[38] - Operating profit for 2023 was RMB 14,502 million, reflecting an 8.9% year-on-year increase[45] - The company achieved a significant reduction in net financial expenses, totaling RMB 2,784 million, down 3.3% year-on-year[42] Capital Expenditures - Capital expenditures for 2023 amounted to RMB 31.715 billion, a 21.0% increase from RMB 26.207 billion in 2022[4] - Capital expenditure on new site construction and shared renovations accounted for 53.8% of total capital expenditure in 2023, up from 55.9% in 2022[47] - The company invested RMB 8,534 million in site upgrades, representing 26.9% of total capital expenditure in 2023, compared to 23.1% in 2022[47] - Total capital expenditure for 2023 reached RMB 31,715 million, a 20.9% increase from RMB 26,207 million in 2022[47] Business Segments - Tower business revenue reached RMB 75.023 billion in 2023, a decrease of 2.8% year-on-year, with 204.6 million tower sites by year-end, a reduction of 0.009 million sites[12] - Indoor distribution business revenue increased by 22.5% year-on-year to RMB 7.14 billion, with building coverage area reaching 10.15 billion square meters, a growth of 37.3%[12] - Smart connection business generated RMB 7.283 billion in revenue, up 27.7% year-on-year, with tower visual connection revenue at RMB 4.727 billion, accounting for 64.9% of smart connection revenue[13] - Energy business revenue grew by 31.7% year-on-year to RMB 4.214 billion, with tower battery swap revenue at RMB 2.067 billion, representing 49.1% of energy business revenue[14] - The revenue from the operator business for 2023 was RMB 82.163 billion, a decline of 1.0% year-over-year[21] - The non-tower business revenue, including indoor distribution and two-wing businesses, grew at a double-digit rate, increasing its share of total revenue from 16.2% to 20.2%[30] Market Expansion and Strategy - The company is focusing on expanding its smart connection and energy services, with significant growth in these segments of 27.7% and 31.7% respectively[4] - The company aims to enhance core competitiveness and implement a "five-type" enterprise strategy to drive high-quality development[16] - The company plans to expand its market share in indoor distribution and leverage existing resources to meet customer needs effectively[16] - The company is focusing on digital governance and smart transformation, enhancing its platform, algorithm, and application capabilities to support industry upgrades[16] - The company is committed to achieving the "dual carbon" goals through clean energy initiatives and infrastructure improvements[15] Shareholder and Dividend Information - The board proposed a final dividend of RMB 0.03739 per share, representing 75% of the distributable profit for the year[10] - The company emphasizes shareholder value and has adopted a dividend policy, planning to distribute 50% or more of the annual distributable profits as dividends, subject to board approval[69] - The dividend is expected to be paid around June 28, 2024, if approved[70] - For H-share non-resident corporate shareholders, a 10% corporate income tax will be withheld on the proposed final dividend[70] Corporate Governance and Management - The company has a strong management team with extensive experience in finance and telecommunications, including key personnel such as the Chief Financial Officer and Vice Presidents[66][65] - The board of directors consists of nine members, all male, with a commitment to gender diversity by aiming to appoint at least one female director by December 31, 2024[175] - The company has established policies to avoid potential conflicts of interest and ensure objective decision-making by the board[177] - The company has implemented a comprehensive internal control and risk management system to enhance governance standards and transparency[162] Related Party Transactions - The company has established ongoing related party transactions with major shareholders, including China Mobile, China Unicom, and China Telecom[99] - The annual cap and transaction amounts for services provided to China Mobile and its subsidiaries totaled RMB 44,020 million, with a transaction amount of RMB 41,819 million for the year 2023[106] - The company has entered into a new value-added service framework agreement with China Mobile Group for the period 2024-2026, effective from January 1, 2024[127] Social Responsibility and Community Engagement - The company has completed over 20 major communication support tasks for national and international events in 2023, demonstrating its commitment to social responsibility[15] - The company actively fulfills its social responsibility by promoting resource-saving practices and providing uninterrupted power and maintenance services to telecommunications operators and smart business clients[151] Risk Management - The company relies heavily on three telecommunications operators for the majority of its revenue, which poses a risk if these clients' demand fluctuates due to budget changes or strategic shifts[200] - The company faces significant risks related to the overall growth of the telecommunications tower infrastructure industry, which directly impacts its business performance[200] - The supervisory board is responsible for monitoring the performance of directors and senior management, ensuring compliance with financial reporting and legal regulations[196]

Investment Rating - The investment rating for China Tower is upgraded to "Buy-B" for the first time [2] Core Views - The company reported a revenue of 94.009 billion yuan in 2023, a year-on-year increase of 2.0%, and a net profit attributable to shareholders of 9.750 billion yuan, up 11.0% year-on-year [1][4] - The overall revenue growth is maintained, with an improvement in profitability, driven by a decrease in major operating costs and the expansion of its two wings business, which includes smart connection and energy services [1][5] - The company is expected to benefit from the growth of the digital economy and the instant delivery industry, with projected revenues for 2024-2026 of 98.362 billion, 102.688 billion, and 106.567 billion yuan, respectively [2][6] Summary by Sections Financial Performance - In 2023, the company achieved an operating income of 94.009 billion yuan, with a slight decline in operator business revenue to 82.163 billion yuan, down 1.0% year-on-year [1][4] - The EBITDA reached 63.551 billion yuan, indicating a steady improvement in operational efficiency [1] - The net profit margin improved to 10.4% in 2023, with a projected increase to 10.9% in 2024 [4][8] Business Segments - The tower business revenue was 75.023 billion yuan, down 2.8%, while the indoor distribution business grew by 22.5% to 7.140 billion yuan [1][6] - The smart connection business generated 7.283 billion yuan, up 27.7%, and the energy business saw a 31.7% increase to 4.214 billion yuan [1][6] - The two wings business now accounts for 12.2% of total revenue, with significant growth potential in the electric vehicle battery swap market, projected to grow at a CAGR of 41.62% from 2023 to 2026 [1][5] Future Outlook - The company expects stable growth in the operator business from 2024 to 2027, driven by the advantages of "5G + indoor distribution" resources [2][5] - Revenue forecasts for the tower business are expected to decline slightly, while the indoor distribution, smart connection, and energy businesses are projected to grow significantly [5][6] - The company is positioned to leverage its market space and continue developing its two wings business, which is anticipated to contribute to a new round of performance growth [6][7]

h 股 c r a 票 e s e R 研 y [Table_Title] Gin Yu 余劲同 tiu Company Report: China Tower (00788 HK) 中文版 究 q (852)2509 2113 E 公司报告： 中国铁塔 (00788 HK) Chinese version gin.yu@gtjas.com.hk 19 March 2024 [Table_Summary] 2023年盈利稳定增长；折旧期结束打开股息增长空间，“买入” tr  我 我们 们维 预持 计中 20国 24铁 -2塔 0（ 26“ 财公 年司 每” 股） 收的 益目 分标 别价 为为 人1 民.20 币港 0.元 06， 5维 元持 投 人资 民评 币级 0.为 07“ 6元买 /入 人” 民。 公 o [RTaabtlien_gR:a nk] Buy p / e 司 R 币0.124元。由于大量铁塔的折旧年限将在2025年第四季度到期，将为利润释放 Maintained y 报 n a 提供充足的空间，我们预计2026年派息水平将大幅上升；因此，我们维持“买入” 评级： 买入 (维持) p 告 m ...

智通财经APP获悉，野村发布研究报告称，维持中国铁塔(00788)“中性”评级，目标价从0.86港元升至0.96港元。该行认为5G投资放缓，导致增长仍疲弱，去年收入同比增长2%，盈利增长11%，分别较该行预测低0.4%及1%，期内EBITIDA增长1.1%，符合预期。管理层解释，去年塔类服务收入同比下降2.8%，主要是受2022年底与三大电讯营运商签订的新五年商务定价协议所拖累，可比口径计算该业务收入实际同比增长2%。该行认为，由于电讯商5G投资放缓，预期塔类业务增长今年仍将面临阻力，同时新兴业务尚未完全实现健康盈利能力。 ...