New Street Research - China Tower Corp. Ltd. Class H (00788) China Tower (Buy, TP: HK$ 1.40, +45%) Q2 24 Quick Take: Sustained profitable growth on faster trends; first interim dividend announced

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New Street Research

Chris Hoare

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China Tower (Buy, TP: HK$ 1.40, +45%) Q2 24 Quick Take: Sustained profitable growth on faster trends; first interim dividend announced

Both revenue and EBITDA trends improved, with KPIs looking healthy and Core Tower reverting to growth again. As depreciation costs continue to slow, earnings have been growing rapidly, up 10% YoY in the first half. China Tower has also announced its first interim dividends (RMB 0.0109/share) and guided for full year’s dividends to be no less than 75% payout.

07/08/2024 1 EN

Underlying

China Tower Corp. Ltd. Class H

CHINA TOWER CORPORATION LIMITED is a China-based telecommunications tower infrastructure service provider. The Company mainly has three business segments. The Tower Business segment mainly uses sites to carry out macro cell and small cell businesses with telecommunications service providers (TSPs). The Indoor Distributed Antenna System (DAS) Business segment mainly provides indoor distributed antenna systems to TSPs and to attach their telecommunications equipment. The Trans-sector Site Application and Information Business (TSSAI business) segment mainly uses the sites dispersed nationwide and provide site resource services, including infrastructure, maintenance services and power services, to host different types of devices for customers from different industries and support them to build up different types of nationwide or regional networks.

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CNE100003688 Hong Kong Stock Exchange China

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Chris Hoare

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China Tower (Buy, TP: HK$ 1.40, +45%) Q2 24 Quick Take: Sustained profitable growth on faster trends; first interim dividend announced

China Tower (Buy, TP: HK$ 1.40, +30%) Q3 24 Quick Take: Faster EBITDA and net profit trend supportive of higher year-end dividends

EM Towers Q2 CY24 review: Improving trends in China and Africa, Indonesia stable while Indus slowed

Alphabet (GOOGL, Buy, $213 target) Forget Chrome, 3P payments are the heart of the issue

SATS: DBS merger breaks

3Q24 Broadband Trends: FWA capacity limits; FWA demand limits

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