China Tower Corp Ltd_ Risk Reward Update

Summary of China Tower Corp Ltd Conference Call Company Overview - Company: China Tower Corp Ltd (Ticker: 0788.HK) - Industry: Greater China Telecoms Key Points Risk Reward Update - The risk-reward scenario for China Tower Corp Ltd has been updated with new price targets: - Bull Case: HK$15.00 - **Base Case**: HK$13.00 - Bear Case: HK$10.00 [1][2] Earnings Forecasts - Adjusted EPS forecasts post a 1:10 reverse stock split: - **2024**: Rmb0.62 - **2025**: Rmb0.72 - **2026**: Rmb1.12 [2] Stock Performance - Current stock price (as of February 19, 2025): HK$1.21 - 52-week range: HK$0.86 - HK$1.23 [3] Financial Metrics - Price Target: HK$13.00 based on discounted cash flow (DCF) valuation with a WACC of 10.1$1.25, with Morgan Stanley's target at HK$13.00 [7]. Investment Drivers - Positive secular growth and self-help themes identified [13]. - Risks include slower-than-expected non-telecom revenue growth and 5G development [20]. Key Earnings Inputs - Tower Revenue YoY: - 2023: -2.8% - 2024e: 1.2% - 2025e: 1.5% - 2026e: 1.6% [16]. Institutional Ownership - Institutional ownership stands at 50.7% [19]. Analyst Insights - Analysts express confidence in the company's ability to maintain resilient top-line growth compared to operators, with visible DPS upside [10]. Conclusion China Tower Corp Ltd presents a favorable investment opportunity with a solid growth outlook, despite some challenges in revenue per tenant. The updated price targets and earnings forecasts reflect a positive sentiment towards the company's future performance in the telecom sector.