CHINA TOWER(00788) 浙商证券·2024-08-08 05:23Investment 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]