Core Viewpoint - China Tower reported a stable performance in 1H25 with slight revenue growth and improved net profit, while maintaining a healthy dividend payout to enhance shareholder returns [1][3]. Financial Performance - 1H25 revenue increased by 2.8% YoY to RMB49.6 billion, slightly below BBG consensus of RMB49.7 billion [1] - Net profit rose by 8.0% YoY to RMB5.8 billion, exceeding BBG consensus of RMB5.7 billion [1] - EBITDA for 1H25 grew by 3.6% YoY to RMB34.2 billion, with an EBITDA margin of 69.0% [1] - Free cash flow declined by 14.7% YoY to RMB16.3 billion, but cash flow from operations grew by 172% HoH [1] Business Segments - Tower revenue, accounting for 76% of 1H25 revenue, remained stable at RMB37.8 billion [2] - DAS and Two Wings businesses achieved double-digit growth, with revenues of RMB4.7 billion (+12% YoY) and RMB13.4 billion (+15% YoY) respectively [2] - Anticipated overall revenue for 2025 is projected at RMB100 billion, reflecting a 3% YoY increase [2] Shareholder Returns - The Company declared a mid-term dividend of RMB0.13 per share for 1H25, marking a 21.6% increase YoY [3] - The full-year dividend per share for 2024 was RMB0.42, representing an 11.5% increase YoY and a payout ratio of 76% [3] Outlook and Valuation - The Company maintains a HOLD rating with a target price adjusted to HK$13.1, based on a 4.0x FY25E EV/EBITDA [4][5] - Limited topline and EBITDA upside is expected, with estimates of 2.7% and 3.1% YoY growth in 2025E [4]