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]

AI原生应用正迎来爆发式增长， 并逐渐成为各场景应用体验的核心要素。 AI原生时代正在到来。 最终，经过多轮筛选与综合评审，45个优秀AI原生应用创新案例脱颖而出，成功入围。 「2025 AI原生应用创新案例」评选结果 （排名不分先后） 随着DeepSeek等开源框架的突破，AI原生应用创新迭代速度与落地广度显著提升。数据显示，去年12月国内AI原生APP月活已突破1.2亿，同比增长232%。 此外市场对生成式AI（GenAI）的发展前景也十分看好，据Gartner预测，2025年全球生成式AI（GenAI）支出将达6440亿美元，同比增长76.4%。 当前，AI原生应用正迎来爆发式增长，并逐渐成为各场景应用体验的核心要素。从医疗诊断到工业制造，从个人助手到全球产业链升级，AI原生正以惊人 的速度重塑产业格局。 基于此，今年1月，36氪主办发起「2025 AI原生应用创新案例」评选活动，希望 聚焦那些真正能够提质增效、引领行业变革的AI原生产品及应用，寻找那 些率先将AI技术落地于实际场景、创造实际价值的创新实践案例， 为行业提供可参考和借鉴的应用经验。 评选启动后，引起业界的广泛关注，陆续收到近百个申报案例 ...

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].

Investment Rating - The report maintains a "Hold" rating for China Tower Corporation [1][3] Core Views - The company's 2024 fiscal year performance met expectations, with a revenue increase of 4.0% year-on-year, reaching RMB 97.7 billion, and a net profit growth of 10.0%, amounting to RMB 10.7 billion [1] - The report highlights the stable performance of legacy businesses, while Distributed Antenna System (DAS) and Two Wings (smart towers and energy) segments continue to show double-digit growth [2][3] - The target price has been raised to HKD 13.7, based on a 4.0x FY25E EV/EBITDA, reflecting a higher valuation due to the company's efforts to enhance shareholder returns [3] Financial Summary - Revenue for FY24 is reported at RMB 97,772 million, with a projected growth rate of 4.1% for FY25 and 2.5% for FY26 [4] - Net profit for FY24 is RMB 10,729 million, with expected growth rates of 13.0% for FY25 and 13.2% for FY26 [4] - The company announced a total dividend of RMB 0.42 per share for 2024, indicating a payout ratio of 76% [3] Business Segments - Tower business revenue, which constitutes 77% of total revenue, reached RMB 75.7 billion, growing by 0.9% year-on-year [1] - DAS revenue, accounting for 9% of total revenue, increased by 18% to RMB 8.4 billion, while the Two Wings segment, making up 14%, grew by 16% to RMB 13.4 billion [1][2] Market Outlook - The report anticipates continued growth in the DAS segment, projecting a revenue increase of 14.0% and 11.6% for FY25 and FY26, respectively [2] - The Two Wings business is expected to grow by 17.5% and 16.2% in FY25 and FY26, respectively, driven by new revenue from national disaster warning and farmland protection projects [2]

Investment Rating - The report maintains a HOLD rating for China Tower with a new target price of HK$13.7, reflecting an upside potential of 11.9% from the current price of HK$12.24 [1][3]. Core Insights - China Tower's FY24 results were in line with expectations, showing a revenue increase of 4.0% YoY to RMB97.8 billion and a net profit increase of 10.0% to RMB10.7 billion [1]. - The Tower segment, which constitutes 77% of total revenue, saw a modest growth of 0.9% YoY, while the DAS and Two Wings segments experienced double-digit growth rates of 18% and 16% YoY, respectively [1][6]. - The company is focusing on optimizing its capital structure through a stock consolidation (1 for 10) announced in February 2025 [1]. Financial Performance Summary - Revenue for FY24 was RMB97.8 billion, with projected revenues of RMB101.8 billion for FY25 and RMB104.4 billion for FY26, indicating a growth rate of 4.1% and 2.5% respectively [2][14]. - Net profit for FY24 was RMB10.7 billion, with estimates of RMB12.1 billion for FY25 and RMB13.7 billion for FY26, reflecting growth rates of 13.0% and 13.2% respectively [2][14]. - The EBITDA for FY24 was RMB66.6 billion, with projections of RMB69.1 billion for FY25 and RMB71.2 billion for FY26 [2][14]. Segment Analysis - The Tower business is expected to remain stable, with a projected low single-digit growth for China telcos from 2025 to 2027 [6]. - The DAS segment is forecasted to grow by 14.0% YoY in 2025 and 11.6% YoY in 2026, driven by market opportunities such as signal strength upgrade projects [6]. - The Two Wings segment, which includes smart tower and energy solutions, is anticipated to grow by 17.5% YoY in 2025 and 16.2% YoY in 2026, bolstered by projects like national disaster alerts [6]. Valuation Metrics - The new target price of HK$13.7 is based on a 4.0x FY25 EV/EBITDA, which aligns with the company's 5-year average forward EV/EBITDA [1][6]. - The report indicates a dividend payout ratio of 76% for 2024, up from previous years, suggesting a commitment to returning value to shareholders [6].

Core Insights - China Tower reported a revenue of 97.772 billion yuan for 2024, a year-on-year increase of 4.0%, with a net profit of 10.729 billion yuan, up 10.0% from the previous year, indicating enhanced profitability [1] - The company plans to distribute a final dividend of 0.30796 yuan per share, leading to a total annual dividend of 0.41696 yuan per share, which is an increase of 11.5% compared to 2023 [1] - The chairman expressed confidence in the company's role in the low-altitude economy, highlighting the extensive coverage of wireless mobile bases and the potential for resource sharing to reduce infrastructure costs [1] Operator Business Growth - The operator business generated revenue of 84.119 billion yuan in 2024, reflecting a 2.4% year-on-year growth, driven by the company's role in 5G infrastructure development [2] - Tower business revenue reached 75.689 billion yuan, a 0.9% increase, with the number of tower sites growing to 2.094 million, an increase of 48,000 sites from the previous year [2] - The average number of tenants per tower increased from 1.68 to 1.72, indicating improved site-sharing levels [2] Indoor Distribution Business - The indoor distribution business achieved revenue of 8.430 billion yuan, marking an 18.1% increase, with significant growth in coverage areas for buildings and transportation systems [3] - The coverage area for indoor distribution reached 12.68 billion square meters, a 24.9% increase, while the coverage mileage for high-speed rail tunnels and subways reached 29,315 kilometers, up 21.8% [3] Two-Wing Business Development - The two-wing business generated revenue of 13.388 billion yuan, accounting for 13.7% of total revenue, an increase of 1.5% year-on-year [4] - The smart connection business saw revenue of 8.911 billion yuan, a 22.4% increase, with a focus on disaster warning and agricultural protection [4] - The company expanded its partner network and established strategic collaborations to enhance service capabilities [4] Energy Business Growth - The energy business reported revenue of 4.477 billion yuan, a 6.2% increase, with the battery swap business contributing 2.500 billion yuan, accounting for 55.8% of energy revenue [6] - The number of battery swap users reached approximately 1.304 million, an increase of 159,000 users from the previous year, maintaining a leading position in the low-speed electric vehicle market [5][6] - The company is focusing on providing comprehensive solutions for backup power in key industries [6]