Investment Rating - The report assigns a "Buy" rating to China Tower Corporation Limited (0788.HK) [9] Core Views - China Tower is positioned as a global leader in communication infrastructure, focusing on a "one body, two wings" strategy that enhances its growth potential [9][11] - The company has shown steady revenue growth and strong cash flow, with a projected increase in net profit from 10,729 million yuan in 2024 to 17,435 million yuan in 2027 [5][15] - The company benefits from a high market share and a diversified business model, with significant contributions from its tower, indoor distribution, smart connection, and energy businesses [11][15] Summary by Sections 1. Company Overview - China Tower was established in July 2014 by three major telecom operators and has since become a key player in the communication infrastructure sector, achieving over 97% market share in China [11][15] - The company has diversified its operations into smart connection and energy sectors, enhancing its service offerings and market reach [11][15] 2. Financial Performance - The company reported a revenue of 97,772 million yuan in 2024, with a growth rate of 4%, and a net profit of 10,729 million yuan, reflecting a 10% increase [5][15] - For the first three quarters of 2025, the company achieved a revenue of 743.19 billion yuan, up 2.6%, and a net profit of 87.08 billion yuan, up 6.8% [15][18] 3. Business Segments - The tower business accounted for approximately 76% of total revenue, while the smart connection and energy businesses contributed 9.5% and 4.6%, respectively [11][15] - The company has established a robust energy business, becoming a leading player in the light electric vehicle battery swap market with over 50% market share [11][15] 4. Market Position and Strategy - China Tower's strategy of resource sharing and infrastructure specialization has led to significant economic and social benefits, with a focus on enhancing operational efficiency [11][33] - The company is well-positioned to capitalize on the growing demand for communication infrastructure driven by urbanization and technological advancements [11][33] 5. Future Outlook - The report forecasts a substantial increase in net profit, projecting 11,629 million yuan in 2025 and 16,097 million yuan in 2026, driven by the completion of depreciation on existing towers [5][15] - The company is expected to maintain a high dividend payout ratio, averaging 60.9% since its listing, reflecting its commitment to returning value to shareholders [9][15]

Investment Rating - The report assigns a "Buy" rating to China Tower Corporation Limited (0788.HK) [9] Core Views - China Tower is positioned as a global leader in communication infrastructure, focusing on a "one body, two wings" strategy that enhances its growth potential [9][11] - The company has shown steady revenue growth and strong cash flow, with a projected increase in net profit from 10.73 billion yuan in 2024 to 17.44 billion yuan in 2027 [9][15] - The company benefits from a high market share and a diversified business model, with significant contributions from its tower, indoor distribution, smart connection, and energy businesses [11][15] Summary by Sections 1. Company Overview - China Tower was established in July 2014 by three major telecom operators and has since become a key player in the communication infrastructure sector, achieving over 97% market share in China [11][15] - The company has diversified its operations into smart connection and energy sectors, enhancing its service offerings and market reach [11][15] 2. Financial Performance - The company reported a revenue of 97.77 billion yuan in 2024, with a growth rate of 4%, and a net profit of 10.73 billion yuan, reflecting a 10% increase [9][15] - For the first three quarters of 2025, the company achieved a revenue of 74.32 billion yuan, up 2.6%, and a net profit of 8.71 billion yuan, up 6.8% [15][18] 3. Business Segments - The tower business accounted for approximately 76% of total revenue, while the smart connection and energy businesses contributed 9.5% and 4.6%, respectively [11][15] - The company has established a robust energy business, becoming a leading player in the light electric vehicle battery swap market with over 50% market share [11][15] 4. Market Position and Strategy - China Tower's strategy of resource sharing and infrastructure specialization has led to significant economic and social benefits, with a focus on enhancing operational efficiency [11][33] - The company is well-positioned to capitalize on the growing demand for communication infrastructure driven by urbanization and technological advancements [11][33] 5. Future Outlook - The report forecasts a substantial increase in net profit, projecting 11.63 billion yuan in 2025 and 16.10 billion yuan in 2026, driven by the completion of depreciation on existing towers [9][15] - The company is expected to maintain a high dividend payout ratio, averaging 60.9% since its listing, reflecting its commitment to returning value to shareholders [9][15]

Investment Rating - The report maintains an "Accumulate" rating for the company [3] Core Views - The company reported a revenue of 9.737 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 11.52%, and a net profit attributable to shareholders of 1.605 billion yuan, up 15.85% year-on-year [1][6] - The integration of the acquired company, Yuefeng, has exceeded expectations, contributing significantly to overall revenue and profit [6] - The company's operational business achieved a revenue of 5.122 billion yuan, with a year-on-year increase of 22.01%, and a net profit of 1.372 billion yuan, up 46.15% year-on-year [6] Financial Performance - The company’s total revenue for 2023 is projected at 12.541 billion yuan, with a year-on-year decrease of 3%, followed by a recovery in 2025 with an expected growth of 23% [2][10] - The net profit attributable to shareholders is forecasted to grow from 1.430 billion yuan in 2023 to 1.912 billion yuan in 2025, reflecting a compound annual growth rate of 15% [7][10] - The company’s operating profit is expected to increase from 1.822 billion yuan in 2023 to 2.395 billion yuan in 2025, with a growth rate of 15% [9][10] Business Segments - The heating business has shown continuous growth, with external heating supply reaching 1.4634 million tons, a year-on-year increase of 40.40% [6] - The energy and water supply businesses have remained stable, with revenues of 2.783 billion yuan and 714 million yuan respectively, showing slight year-on-year changes [6] Cash Flow and Valuation - The company reported a free cash flow of 1.353 billion yuan for the first three quarters, significantly improved from the previous year [6] - The current stock price corresponds to a price-to-earnings ratio (PE) of 12.3x for 2025, indicating a favorable valuation compared to historical performance [7][10]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company has demonstrated significant improvements in quality and efficiency, with the integration of Yuefeng continuing to yield positive results [1] - For the first three quarters of 2025, the company achieved a revenue of 9.737 billion yuan, an increase of 11.52% year-on-year, and a net profit attributable to shareholders of 1.605 billion yuan, up 15.85% year-on-year [1] - The strong internal growth momentum is primarily driven by the consolidation of Yuefeng Environmental, which contributed approximately 1.486 billion yuan in revenue and 240 million yuan in net profit during the period [3] Financial Performance Summary - The solid waste treatment business generated a revenue of 5.476 billion yuan, a year-on-year increase of 21.39%, with net profit rising by 4.1 billion yuan [3] - The energy business maintained revenue at 2.783 billion yuan, showing stability compared to the previous year [3] - The company’s cash flow from operating activities saw a substantial increase of 98.21%, reaching 2.662 billion yuan [3] Business Segment Analysis - The heating business showed remarkable growth, with external heating reaching 1.4634 million tons, a 40.40% increase year-on-year, and heating revenue growing by 49.30% to 221 million yuan [3] - The company’s operational efficiency improved, with power generation per ton of waste and grid-connected electricity both increasing by 1.18% and 1.84%, respectively [3] Future Earnings Forecast - The company is projected to achieve revenues of 12.545 billion yuan, 14.241 billion yuan, and 14.563 billion yuan for the years 2025, 2026, and 2027, respectively [6] - The net profit attributable to shareholders is expected to be 1.938 billion yuan, 2.255 billion yuan, and 2.353 billion yuan for the same years [6] - The company’s earnings per share (EPS) is forecasted to be 2.38 yuan, 2.77 yuan, and 2.89 yuan for 2025, 2026, and 2027, respectively [6]

Core Viewpoint - CICC maintains the profit forecast for China Tower (00788) for 2025 and 2026, with a target price of HKD 14.00, indicating a 20.1% upside potential from the current stock price [1] Financial Performance - For the first three quarters of 2025, the company's revenue reached CNY 74.32 billion, a year-on-year increase of 2.6%, and the net profit attributable to shareholders was CNY 8.71 billion, up 6.8%, aligning with CICC's expectations [2] - In Q3 2025, revenue was CNY 24.72 billion, a year-on-year increase of 2.1%, while the net profit attributable to shareholders was CNY 2.95 billion, up 4.5% [2] Business Segments - Revenue growth in the two wings business remains strong, while tower business revenue is slowing down. For 1-3Q25, revenue from tower, indoor distribution, smart connection, and energy businesses grew by -0.7%, +11.3%, +16.8%, and +11.5% respectively; in Q3 2025, the growth rates were -1.2%, +9.8%, +13.2%, and +15.9% [3] - The operator business revenue in Q3 2025 decreased by 0.2%, likely due to cost control measures by operators leading to a decline in non-rental service revenue from the tower business [3] EBITDA and Profitability - EBITDA growth has slowed, with a year-on-year increase of 2.5% for the first three quarters, while net profit attributable to shareholders grew by 6.8%. In Q3 2025, EBITDA was CNY 16.73 billion, up 0.4% year-on-year, and net profit was CNY 2.95 billion, up 4.5% [4] - The slowdown in internal profit growth in Q3 2025 compared to the first half of 2025 is attributed to increased costs and expenses, including credit impairment losses [4] Accounting Changes - The company announced a change in accounting estimates, extending the depreciation period for indoor distribution assets from 7 years to 10 years, which is expected to reduce the depreciation expense for 2025 by approximately CNY 870 million [5] - This change is based on the optimization of daily operations and maintenance systems for indoor distribution, as well as considerations of the actual usage of assets [5]

Core Viewpoint - CICC maintains the profit forecast for China Tower (00788) for 2025 and 2026, with a target price of HKD 14.00, indicating a 20.1% upside potential from the current stock price [1] Financial Performance - For the first three quarters of 2025, the company's revenue reached CNY 74.32 billion, a year-on-year increase of 2.6%, and the net profit attributable to shareholders was CNY 8.71 billion, up 6.8%, aligning with CICC's expectations [2] - In Q3 2025, revenue was CNY 24.72 billion, a year-on-year increase of 2.1%, while the net profit attributable to shareholders was CNY 2.95 billion, up 4.5% [2] Business Segments - Revenue growth in the two wings business remains strong, while tower business revenue shows signs of slowing down. For 1-3Q25, revenue growth rates for various segments were: tower business -0.7%, indoor distribution +11.3%, smart connection +16.8%, and energy +11.5%. In Q3 2025, the growth rates were: tower business -1.2%, indoor distribution +9.8%, smart connection +13.2%, and energy +15.9% [3] - The operator business revenue in Q3 2025 decreased by 0.2%, likely due to cost control measures by operators leading to a decline in non-rental service revenue from the tower business. As of the end of Q3, the number of tower sites reached 2.137 million, a 2.1% increase from the beginning of the year, with an average of 1.81 tenants per site, unchanged from the beginning of the year [3] EBITDA and Profitability - EBITDA growth has slowed, potentially due to credit impairment impacts, while net profit showed good year-on-year growth. For the first three quarters, EBITDA increased by 2.5%, and net profit grew by 6.8%. In Q3 2025, EBITDA was CNY 16.73 billion, a year-on-year increase of 0.4%, and net profit was CNY 2.95 billion, up 4.5% [4] - The slowdown in internal profit growth in Q3 2025 compared to the first half of 2025 is attributed to rising costs and expenses, including credit impairment losses [4] Accounting Changes - The company announced a change in accounting estimates, extending the depreciation period for indoor distribution assets from 7 years to 10 years, expected to reduce the depreciation expense for 2025 by approximately CNY 870 million. This change is based on improved operational and maintenance practices and aligns with the actual usage of assets [5] - The adjustment in depreciation policy is expected to enhance the company's profit and dividend base for 2025, thereby boosting shareholder returns [5]

格隆汇10月16日丨中国铁塔(00788.HK)公告，前三季度营业收入为人民币743.19亿元，同比增长2.6%； EBITDA为人民币509.59亿元，同比增长2.5%；归属公司股东的利润为人民币87.08亿元，同比增长 6.8%。 其中：1.运营商业务收入为人民币634.32亿元，同比增长0.5%；其中，塔类业务收入为人民币565.09亿 元，同比下降0.7%；室内分布式天线系统业务收入为人民币69.23亿元，同比增长11.3%。2.智联业务收 入为人民币70.93亿元，同比增长16.8%。3.能源业务收入为人民币34.24亿元，同比增长11.5%。 ...

Core Insights - China Tower Corporation (00788) reported a revenue of RMB 74.319 billion for the first three quarters of 2025, representing a year-on-year growth of 2.6% [1] - EBITDA reached RMB 50.959 billion, with a year-on-year increase of 2.5% [1] - Profit attributable to shareholders was RMB 8.708 billion, showing a year-on-year growth of 6.8% [1] Revenue Breakdown - Revenue from operator business amounted to RMB 63.432 billion, reflecting a year-on-year growth of 0.5% [1] - Revenue from smart connection business was RMB 7.093 billion, with a significant year-on-year increase of 16.8% [1] - Revenue from energy business reached RMB 3.424 billion, marking a year-on-year growth of 11.5% [1] Operational Metrics - As of September 30, 2025, the number of tower sites was 2.137 million, and the number of tenants reached 3.863 million, with a net increase of 72,000 tenants compared to the end of the previous year [1] - The average number of tenants per tower site was 1.81 [1] - The contribution of two wings business revenue to total revenue increased from 12.6% in the same period last year to 14.2% [1]

Financial Performance - For the first half of 2025, the company's operating revenue was approximately 5.76 billion, a slight decrease from 5.82 billion in the same period last year, reflecting a year-on-year decline of about 1.02% [1] - The total profit for the same period was approximately 1.30 billion, representing an increase of about 18.36% compared to 1.09 billion in the previous year [1] - The net profit attributable to shareholders was approximately 966.86 million, up from 887.13 million, indicating a year-on-year growth of about 8.95% [1] - The net cash flow from operating activities was approximately 1.22 billion, showing a significant increase of 29.77% compared to 941 million in the previous year [25] Revenue Composition - The revenue composition for the first half of 2025 included approximately 18.65 billion from energy supply, 4.89 billion from solid waste management, 5.27 billion from sanitation services, 11.16 billion from water supply, and 2.95 billion from drainage services [16] Profitability Metrics - The weighted average return on equity for the first half of 2025 was 7.01%, a slight decrease of 0.06 percentage points year-on-year [24] - The return on invested capital for the same period was 2.96%, down by 0.81 percentage points compared to the previous year [24] Cash Flow Analysis - The net cash flow from financing activities was approximately 71.12 billion, an increase of 64.43 billion year-on-year [25] - The net cash flow from investment activities was -86.38 billion, worsening from -11.72 billion in the previous year [25] Asset and Liability Changes - As of the end of the first half of 2025, intangible assets increased by 119.91% compared to the end of the previous year, while cash and cash equivalents decreased by 5.81% [39] - Long-term borrowings increased by 162.28%, indicating a significant rise in the company's leverage [42] Shareholder Composition - The top ten shareholders included new entrants such as the ICBC Credit Suisse Dividend Flexible Allocation Mixed Securities Investment Fund, replacing the Hong Kong Central Clearing Limited from the previous quarter [51]

Core Viewpoint - The company reported a decrease in revenue but an increase in profit, indicating resilience in a volatile global market [1] Financial Performance - The company achieved a revenue of HKD 352 million for the six months ending June 30, 2025, representing a year-on-year decrease of 22.47% [1] - Shareholders' profit attributable to the company was HKD 3.042 billion, reflecting a year-on-year increase of 1.2% [1] - Earnings per share were HKD 1.43, with an interim dividend proposed at HKD 0.78 per share [1] Business Operations - The company's quality energy business portfolio operates under a regulatory framework or long-term purchase agreements, providing stable returns [1] - The unaudited profit for the six months ending June 30, 2025, was HKD 3.042 billion, slightly up from HKD 3.006 billion in the previous year, confirming the company's robust financial position amid global market fluctuations [1] - With a solid financial foundation and quality assets, the company is well-prepared to drive future sustainable growth [1]