China Tower's interim revenue falls 1.8%, profit rises 30%
China Tower's interim revenue falls 1.8%, profit rises 30%
Overview
China telecom infrastructure provider's interim revenue fell 1.8% yr/yr, with TSP business revenue down 5%
Net income attributable to owners rose 30.1% yr/yr
Company attributed net income growth to improved quality and efficiency amid volatile environment
Outlook
Company did not provide specific financial guidance
Result Drivers
TSP REVENUE DECLINE - Revenue from TSP business fell 5% yr/yr, driven by lower network construction demand and customers' optimization of network deployment
SMART TOWER GROWTH - Smart Tower segment revenue rose 12.8% yr/yr, supported by expansion into new sectors and increased adoption of digital intelligence solutions
ENERGY SEGMENT GROWTH - Energy business revenue increased 17.3% yr/yr, driven by battery exchange and charging infrastructure expansion
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| RMB 48.69 bln |
|
H1 Net Income Attributable |
| RMB 7.49 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for China Tower Corp Ltd is HK$11.60, about 19% above its August 10 closing price of HK$9.75
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Aug 10 - Hong Kong's Hutchison Telecom H1 profit rises on disposal of Macau operations
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)