智通财经网·2025-08-06 01:31Core Viewpoint - The report from CICC maintains the profit forecast for China Tower (00788) for 2025 and 2026, with a target price of HKD 14.00, indicating a potential upside of 22.5% from the current stock price [1] Financial Performance - For 1H25, the company reported revenue of CNY 49.601 billion, a year-on-year increase of 2.8%, and a net profit of CNY 5.757 billion, up 8.0% year-on-year; EBITDA rose by 3.6% to CNY 34.227 billion [2] - In 2Q25, revenue was CNY 24.830 billion, a 2.3% year-on-year increase, with net profit at CNY 2.733 billion, up 7.3%, and EBITDA at CNY 16.932 billion, a 2.9% increase [2] Business Segments - The operator business showed steady growth, with revenue for 1H25 at CNY 42.461 billion, a 0.8% increase; tower and indoor distribution business revenues were down 0.4% and up 12.0%, respectively [3] - The number of operator tenants increased by 2.5% year-on-year to 3.579 million, with an average of 1.72 tenants per site [3] - The two wings business revenue grew by 15.5% to CNY 6.935 billion, with smart connection and energy revenues increasing by 18.7% and 9.2%, respectively [3] Cost Management - The EBITDA margin improved to 69.0%, up 0.5 percentage points year-on-year, primarily due to effective cost control [4] - Maintenance and operational support costs decreased by 6.2% and 12.6% year-on-year, respectively, due to prior equipment inspections and cost management [4] - Labor costs increased by 9% year-on-year, driven by the recruitment of technology talent [4] Cash Flow and Dividends - Operating cash flow (OCF) for 1H25 was CNY 28.68 billion, a significant quarter-on-quarter improvement of 72.37% [5] - Capital expenditures for 1H25 were CNY 12.39 billion, down 9.7% year-on-year, reflecting changes in operator construction demand [5] - The company announced an interim dividend of CNY 0.1325 per share, a 21.6% increase year-on-year, with a payout ratio of 40.5% of net profit, up 4.5 percentage points year-on-year [5]