"通信塔"变"数字塔"赋能千行百业数智化治理 近年来，在"双碳"目标引领下，我国经济社会发展绿色转型进入"快车道"，有力助推高质量发展。中国 铁塔始终坚持生态优先、绿色发展，聚焦通信基础设施共建共享，积极推动绿色发展转型升级，取得了 积极成效。 深化共建共享打造绿色通信基础设施 中国铁塔积极响应网络强国、数字中国、绿色低碳发展等国家战略部署，勇担共享经济"践行者"使命， 通过资源统筹、深化共享、集约建设，持续落实"双千兆"、建筑物移动通信国标等政策文件，以及"信 号升格""宽带边疆"等相关要求，全力支撑电信企业打造5G精品网络。 通过共建共享，中国铁塔不仅助力信息通信行业实现了资源的高效利用，更推动通信基础设施的绿色转 型。截至2025年3月，中国铁塔累计承建基站建设项目超560万个，高铁地铁公网覆盖总里程超过6.6万 公里，高校、医院、景区、交通枢纽、大型场馆等重点场所室内信号覆盖超过173亿平方米。新建铁塔 共享率从中国铁塔成立初期的14.3%大幅提升至目前的85%。5G基站建设95%以上通过共享已有资源实 现，相当于少建新塔122万座，节约土地6.8万亩，节省行业投资超2100亿元，节约运营费用1800 ...

Group 1: Tender Results - China Tower announced the results of the 2025 centralized procurement project for office terminal products, revealing that Huawei won the bid for laptops with a 60% share, while Lenovo secured a 40% share [1] - Lenovo was the sole winner for the desktop computer category, with a total procurement of 1,790 units and a 100% share [1] Group 2: Government Procurement - The Central Government Procurement Center reported a budget of 37.84 million yuan for the 2025 desktop computer procurement project, highlighting the significant share of domestic chip-based computers [2] - Lenovo demonstrated strong competitiveness in multiple packages, having previously won several bids for desktop computers in January 2025, with total bid amounts reaching 290.6575 million yuan for one package [2] Group 3: Global PC Market Performance - According to IDC, global PC shipments reached a record high of 63.2 million units in Q1 2025, with Lenovo holding a 24.1% market share, marking a year-on-year increase of 1.3 percentage points [3] - IDC forecasts a 4% year-on-year growth in global PC shipments for 2025, driven by AI PCs, which are expected to account for 70% of shipments by 2027 [3] - International investment bank Lyon's latest view indicates that Lenovo's PC business will continue to experience strong growth in the second half of 2025, driven by market share gains from competitors and increased replacement demand due to the end of Windows 10 support [3]

Core Viewpoint - China Tower made its debut at the 2025 MWC Shanghai, emphasizing its role in digital infrastructure development and its contributions to the communication network in China [1][2]. Group 1: Company Contributions - Since its establishment, China Tower has constructed over 5.6 million base stations, playing a crucial role in the national communication infrastructure and 5G new infrastructure [1]. - The company has collaborated with telecom operators to build over 65,000 new telecom service sites, helping to bridge the digital divide and support network poverty alleviation and digital rural construction [1]. Group 2: Technological Innovations - China Tower aims to enhance technological innovation and expand shared resources, transitioning from traditional communication towers to "digital towers" and upgrading communication facilities to support digital economy development [2]. - The company showcased its latest achievements in building intelligent and comprehensive digital information infrastructure, including the 5G transformation of six subway lines in Shanghai [2]. Group 3: AI and Algorithm Development - China Tower has actively implemented the "Artificial Intelligence+" initiative, focusing on algorithm development for high-point scenarios, offering over 470 algorithms and serving nearly 10,000 AI analysis scenarios [3].

Group 1 - The 2025 World Mobile Communication Conference is currently being held in Shanghai, showcasing advanced technologies from China Tower that have attracted attention from both domestic and international peers [1] - China Tower demonstrated various industry application cases based on its extensive tower resources and AI algorithms, including solutions for agricultural burning, water and forest protection, and cultural heritage preservation [3] - The "Iron Tower Vision Link Platform" significantly improves the efficiency of handling straw burning alerts, reducing the average response time from detection to resolution to 20 minutes [3] Group 2 - China Tower has introduced innovative technologies aimed at high-quality network construction, including a new type of 13/8" leaky cable that supports the 3.5GHz frequency band, addressing high costs and low sharing efficiency in high-speed rail tunnel coverage [3] - The company has developed a spatial governance industry model called "Jingwei Model," which includes a visual model with 18 billion parameters and a multi-modal model with 200 billion parameters, enhancing detection accuracy and recall rates [3] - As of March 2025, China Tower has completed over 5.6 million base station construction projects, with a total coverage of over 66,000 kilometers for high-speed rail and subway public networks [4]

Core Viewpoint - The 9th China-South Asia Expo showcased China Tower Corporation's latest achievements in information communication infrastructure, new energy applications, and digital services, emphasizing its "one body, two wings" strategic layout aimed at supporting operator businesses and expanding tower intelligence and energy services [1]. Group 1: Infrastructure Development - China Tower has built a total of 58,000 new towers and achieved indoor coverage of 300 million square meters in Yunnan since its establishment [5]. - The company has implemented 5G network coverage in all administrative villages in Yunnan and is involved in public network coverage projects for high-speed rail and subways [5]. Group 2: Digital Services - China Tower is transitioning from industry sharing to social sharing, creating a unified open platform called "Tower Vision Link" that serves various industries, including forestry, water conservancy, and environmental protection [7]. - The company has established over 130 AI algorithms and signed strategic cooperation agreements with 22 clients across nine major industries [7]. Group 3: Energy Services - China Tower extends its communication base resources to provide diversified smart energy services, including tower battery swapping, charging, and backup power [7]. - The company has developed a three-in-one service system that integrates new energy travel, power assurance, and comprehensive energy solutions [7]. Group 4: International Expansion - China Tower has established a Southeast Asia Tower LLC to collaborate with telecommunications companies in Laos, contributing to the construction of over 290 communication towers [8]. - The company aims to deepen cooperation in technology innovation, standard setting, and ecosystem building with global partners to strengthen the foundation of digital infrastructure [8].

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]

Investment Rating - The investment rating for China Tower Corp Ltd is Overweight, with an industry view classified as Attractive [4][62]. Core Insights - The total revenue for 1Q25 was Rmb24.8 billion, reflecting a year-over-year increase of 3.3% [7]. - The tower business revenue decreased by 0.4% year-over-year, while the DAS business grew by 15.2% year-over-year [2][7]. - The smart tower and energy business saw a year-over-year increase of 17.9%, although it experienced a quarter-over-quarter decline of 18.5% [2][7]. - EBITDA increased by 4.2% year-over-year to Rmb17.3 billion, with a margin expansion of 0.6 percentage points [7]. - Net profit rose by 8.6% year-over-year to Rmb3 billion, with a margin increase of 0.6 percentage points [7]. Summary by Sections Financial Performance - Tower business revenue: Rmb18,877 million, down 0.4% YoY, up 0.5% QoQ [2]. - DAS business revenue: Rmb2,347 million, up 15.2% YoY, up 6.3% QoQ [2]. - Smart Tower and Energy business revenue: Rmb3,457 million, up 17.9% YoY, down 18.5% QoQ [2]. - Total revenue: Rmb24,771 million, up 3.3% YoY, down 2.2% QoQ [2]. - EBITDA: Rmb17,295 million, up 4.2% YoY, margin at 69.8% [2][7]. - Profit before taxation: Rmb4,006 million, up 8.6% YoY, margin at 16.2% [2]. - Net profit: Rmb3,024 million, up 8.6% YoY, margin at 12.2% [2]. Market Position - Current market capitalization is US$24.8 billion, with an enterprise value of US$33.99 billion [4]. - The average daily trading value is US$71 million [4].

Summary of Conference Call Notes Company and Industry - **Company**: China Tower Corporation - **Industry**: AI and Edge Computing Core Points and Arguments 1. **Growth Opportunity in AI and Edge Computing**: The company sees a significant growth opportunity in AI, particularly in edge computing, which aligns with the broader trend of AI applications flourishing in the market [1][3] 2. **Importance of Edge Computing**: It is estimated that 75% of data will be generated and processed at the edge due to the need for real-time processing and efficiency, highlighting the critical role of edge computing in the AI landscape [2] 3. **Market Growth Projections**: The edge computing budget is projected to grow from approximately $9 billion in 2020 to $445 billion by 2030, with a compound annual growth rate (CAGR) of 48% [2] 4. **China Tower's Strategic Position**: The company has a strong position in edge computing due to its extensive infrastructure, including communication towers and data centers, which are well-equipped with necessary resources [4][5] 5. **Distributed Computing Initiatives**: Since 2020, China Tower has been exploring distributed computing, with plans for large-scale distributed computing pools to enhance its service capabilities [5][6] 6. **Collaboration with Major Tech Firms**: The company has established partnerships with major players like Alibaba, which plans to invest $38 billion to $40 billion in AI over the next three years, emphasizing the importance of integrated cloud and edge computing strategies [7][8] 7. **Diverse Application Areas**: China Tower is involved in over 40 sectors, including emergency services and environmental monitoring, leveraging its existing infrastructure for various applications [9][10] 8. **AI Model Development**: The company has developed AI models for specific applications, such as emergency forest fire management, showcasing its commitment to integrating AI into its operations [10][11] Other Important but Potentially Overlooked Content 1. **Stock Market Activity**: The company is undergoing a stock restructuring process, which is expected to positively impact its stock price and trading volume [11] 2. **Depreciation Changes**: A significant reduction in depreciation of acquired assets is anticipated in 2020, which will positively affect profit growth projections [12] 3. **Dividend Yield Expectations**: The expected dividend yield for 2025 is around 4.6% to 4.7%, with an increase to approximately 7.2% to 7.6% by 2026, indicating a strong return for investors [12] This summary encapsulates the key insights from the conference call, focusing on the strategic positioning of China Tower in the evolving AI and edge computing landscape, along with financial projections and market dynamics.

Investment Rating - The report assigns a Neutral rating to China Tower [1][9][16] Core Insights - China Tower's 3Q24 results were mixed, with total revenue growth decelerating from 4% year-over-year (yoy) in 2Q24 to 2% in 3Q24, primarily due to a slowdown in the TSP business, despite steady performance in the Two Wings segment [1][9] - EBITDA growth improved slightly from 3.4% to 3.7% yoy in 3Q24, attributed to stringent cost control measures, while net profit growth rebounded from 9% to 13% yoy due to slower depreciation and amortization (D&A) expense increases and reduced finance costs [1][9][2] - The report anticipates a positive short-term reaction in China Tower's share price due to solid earnings improvement, although it expresses concerns that consensus earnings estimates may be overly optimistic, leading to potential downward revisions that could negatively impact the share price in the medium term [1][7][9] Summary by Sections Revenue Performance - Total revenue growth slowed from 4% yoy in 2Q24 to 2% in 3Q24, driven by a notable slowdown in the TSP business [1][9] - TSP revenue growth decreased from 4% yoy in 2Q24 to 1% in 3Q24, with tower leasing and DAS revenue growth dropping significantly [3][9] Earnings and Profitability - EBITDA growth increased from 3.4% to 3.7% yoy in 3Q24, supported by reduced repair and maintenance expenses [2][9] - Net profit growth accelerated from 11% in 1Q24 and 9% in 2Q24 to 13% in 3Q24, benefiting from improved EBITDA, slower D&A expense increases, and lower finance costs [2][9] Business Segments - The Two Wings business showed mixed results, with energy operations experiencing a decline for the first time, while Smart Tower revenue increased from 14.5% yoy in 2Q24 to 17% in 3Q24 [4][9] - Overall, the Two Wings business maintained steady growth at approximately 10% yoy in 3Q24 [4][9] Market Expectations - The consensus for China Tower's 2024 revenue, EBITDA, and earnings stands at RMB 98 billion, RMB 66 billion, and RMB 11 billion respectively, implying growth rates of 7%, 5%, and 18% for 4Q24 [6][9] - The report suggests that these consensus numbers are likely to be revised downward following the latest results [6][9]