reports
- Chris Hoare
China Tower (Buy, TP: HK$14, +20%) Q3 25 Quick Take: Slower on softer...
Results were a touch behind expectations following an extended decline in Tower revenue, led by lower ARP/Tenant. This impacted margins which partially offset the stabilising/lower D&A costs, resulting in slower earnings growth. Importantly, the company has flagged an increase in useful life of its DAS assets from 7 to 10 years starting from July and is expected to lower its D&A costs by RMB 870m in 2025. This represents 1.7% of consensus D&A costs. Our key takeaways below
- Chris Hoare
China Tower (Buy, TP: HK$14, +24%) Q2 25 Quick Take: Stable growth, D...
Both revenue and EBITDA trends slowed but were in-line with expectations. Margins improved again which led to earnings progression and a 21% rise in interim dividends. We see our thesis playing out as stabilised revenue growth coupled with falling depreciation is supportive of earnings and therefore dividends growth. The stock had a good run but remains relatively cheap (4.7x FY25 EV/EBITDA), hence we remain Buyers with a HK$ 14 price target
- Chris Hoare
Global EM Towers - A Consistent Approach to EFCF and Shareholder Remun...
Following a similar note we published on the EM Telco sector, we apply the same consistent approach to Equity FCF for Global EM Towers. We have preferred Telcos over Towers for some time, as the drivers of upside for the Telcos (consolidation and declining capital intensity) is a headwind for the Towers.
- Chris Hoare
EM Towers Q1 CY25 review: Steady as she goes
Tower revenue trends were slower across the board except for India’s Indus Tower as it benefited from VIL’s network catch up spend. However, EBITDA margins are improving except in Indonesia which faces the near-term pressure of the XL-Smartfren consolidation.
- Chris Hoare
China Tower (Buy, TP: HK$14, +14%) Q4 24 Quick Take: Rising Two Wings...
China Tower saw Q4 revenue and EBITDA ahead of consensus by 0.9% and 4.8% respectively, led by strong momentum in Two Wings and good cost control. As margins have started to stabilise and earnings up 10% in 2024, the company announced an 11% increase in dividends which implies a 76% payout, in-line with its guidance. As depreciation is set to fall this year, we expect earnings to grow rapidly which should be supportive of the ongoing shareholder remuneration policy. At 3.5x FY25 EV/EBITDA, China...
- Chris Hoare
Global EM Telcos & Towers Introducing the NSR Global EM Telco & Tower...
In a separate note published last week we introduced the NSR GEM-Top 8. However, many of the stocks in that list are not liquid and so, given the tailwinds we now see in the Telco industry we introduce a second list – the GEM Telco & Towers Liquid Compounders; large cap, well-managed telcos in attractive markets at cheap valuations that are likely to generate market-beating returns over time. These are the best large cap investments in the Global EM Telco & Towers space we think.
- Chris Hoare
- Chris Hoare
- Chris Hoare
EM Towers Q2 CY24 review: Improving trends in China and Africa, Indon...
Revenue and EBITDA trends improved again for China Tower, which alongside stable depreciation supported bottom-line momentum. In Indonesia, MTEL and TOWR continued to perform where the latter benefited from faster growth in its Fibre business thus should act as a buffer should the XL and Smartfren deal were to proceed.
- Chris Hoare
China Tower (Buy, TP: HK$ 1.40, +45%) Q2 24 Quick Take: Sustained pro...
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.
- Chris Hoare
CHINA TOWER CORP LTD sees an upgrade to Slightly Positive due to a bet...
The general evaluation of CHINA TOWER CORP LTD (CN), a company active in the Heavy Construction industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 14, 2022, the closing ...
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