Financials China Tower Corporation Limited

Equities

788 CNE100003688

Construction & Engineering

Market Closed - Hong Kong S.E. Other stock markets 04:08:20 2024-04-26 am EDT			5-day change	1st Jan Change
0.93 ^HKD	+1.09%		+5.68%	+13.41%

Apr. 23	China Tower Corporation Limited Appoints Chen Li as General Manager	CI
Apr. 19	China Tower's Q1 Profit Rises 11%	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	270,545	168,877	123,336	130,576	131,180	151,521	-	-
Enterprise Value (EV) ¹	359,821	252,955	218,169	204,578	221,851	206,278	195,859	190,320
P/E ratio	51.8 x	26.1 x	16.7 x	14.7 x	13.4 x	13.6 x	11.1 x	7.62 x
Yield	0.95%	2.33%	3.74%	4.36%	5.02%	4.95%	6.31%	9.37%
Capitalization / Revenue	3.54 x	2.08 x	1.42 x	1.42 x	1.4 x	1.54 x	1.48 x	1.41 x
EV / Revenue	4.71 x	3.12 x	2.52 x	2.22 x	2.36 x	2.09 x	1.91 x	1.77 x
EV / EBITDA	6.35 x	4.25 x	3.46 x	3.26 x	3.49 x	3.13 x	2.88 x	2.71 x
EV / FCF	15.8 x	12.4 x	6.18 x	5.26 x	-	5.37 x	6.56 x	6.54 x
FCF Yield	6.34%	8.07%	16.2%	19%	-	18.6%	15.2%	15.3%
Price to Book	1.48 x	0.91 x	0.65 x	0.67 x	-	0.74 x	0.73 x	0.7 x
Nbr of stocks (in thousands)	176,008,471	176,008,471	176,008,471	176,008,471	176,008,471	176,008,471	-	-
Reference price ²	1.537	0.9595	0.7007	0.7419	0.7453	0.8609	0.8609	0.8609
Announcement Date	3/18/20	3/8/21	3/9/22	3/2/23	3/18/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	76,428	81,099	86,585	92,170	94,009	98,633	102,665	107,317
EBITDA ¹	56,696	59,527	63,017	62,844	63,551	65,804	68,113	70,283
EBIT ¹	11,281	12,012	13,035	13,312	14,502	16,801	19,593	27,752
Operating Margin	14.76%	14.81%	15.05%	14.44%	15.43%	17.03%	19.08%	25.86%
Earnings before Tax (EBT) ¹	6,837	8,407	9,615	11,528	12,832	14,597	17,532	26,567
Net income ¹	5,222	6,428	7,329	8,787	9,750	11,098	13,314	20,143
Net margin	6.83%	7.93%	8.46%	9.53%	10.37%	11.25%	12.97%	18.77%
EPS ²	0.0297	0.0368	0.0419	0.0503	0.0558	0.0632	0.0775	0.1130
Free Cash Flow ¹	22,812	20,426	35,311	38,927	-	38,438	29,867	29,084
FCF margin	29.85%	25.19%	40.78%	42.23%	-	38.97%	29.09%	27.1%
FCF Conversion (EBITDA)	40.24%	34.31%	56.03%	61.94%	-	58.41%	43.85%	41.38%
FCF Conversion (Net income)	436.84%	317.77%	481.8%	443.01%	-	346.36%	224.32%	144.39%
Dividend per Share ²	0.0146	0.0224	0.0262	0.0323	0.0374	0.0426	0.0543	0.0806
Announcement Date	3/18/20	3/8/21	3/9/22	3/2/23	3/18/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S2	2020 S1	2020 S2	2021 S1	2021 Q3	2021 Q4	2021 S2	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 S1	2024 S2
Net sales ¹	38,448	39,794	41,305	42,673	21,915	21,997	43,912	22,633	22,846	45,479	23,203	23,488	46,691	23,199	46,461	-	23,858	47,548	48,785	50,043
EBITDA	28,881	29,100	30,427	31,184	16,105	15,728	31,833	15,682	16,276	31,958	-	15,384	-	16,112	-	-	-	-	-	-
EBIT	5,655	5,841	6,171	6,354	-	-	6,681	-	-	7,089	-	-	6,223	-	7,414	-	-	7,088	8,363	7,174
Operating Margin	14.71%	14.68%	14.94%	14.89%	-	-	15.21%	-	-	15.59%	-	-	13.33%	-	15.96%	-	-	14.91%	17.14%	14.34%
Earnings before Tax (EBT)	3,503	3,897	4,510	4,558	-	-	5,057	-	-	-	-	-	-	-	-	3,312	-	-	-	-
Net income	2,674	2,978	3,450	3,457	1,799	2,073	3,872	2,180	2,044	4,224	2,175	-	-	2,506	-	2,506	-	-	-	-
Net margin	6.95%	7.48%	8.35%	8.1%	8.21%	9.42%	8.82%	9.63%	8.95%	9.29%	9.37%	-	-	10.8%	-	-	-	-	-	-
EPS	0.0152	0.0170	0.0198	0.0198	-	-	0.0221	-	-	-	-	-	-	-	-	-	-	-	-	-
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	3/18/20	8/11/20	3/8/21	8/9/21	10/19/21	3/9/22	3/9/22	4/19/22	8/8/22	8/8/22	10/19/22	3/2/23	3/2/23	4/28/23	8/3/23	10/19/23	3/18/24	3/18/24	-	-

¹CNY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	89,276	84,078	94,833	74,002	90,671	54,757	44,338	38,799
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	1.575 x	1.412 x	1.505 x	1.178 x	1.427 x	0.8321 x	0.6509 x	0.552 x
Free Cash Flow ¹	22,812	20,426	35,311	38,927	-	38,438	29,867	29,085
ROE (net income / shareholders' equity)	2.88%	3.49%	3.9%	4.59%	4.98%	5.62%	6.55%	9.47%
ROA (Net income/ Total Assets)	1.6%	1.9%	2.22%	2.79%	3.09%	3.54%	4.39%	6.36%
Assets ¹	326,716	337,729	330,284	314,405	315,779	313,475	303,386	316,939
Book Value Per Share ²	1.040	1.060	1.080	1.100	-	1.160	1.180	1.240
Cash Flow per Share ²	0.2800	0.3300	0.3500	0.3700	-	0.3400	0.3300	0.3100
Capex ¹	27,123	37,122	25,192	26,207	31,715	30,772	30,158	30,827
Capex / Sales	35.49%	45.77%	29.1%	28.43%	33.74%	31.2%	29.38%	28.73%
Announcement Date	3/18/20	3/8/21	3/9/22	3/2/23	3/18/24	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for China Tower Corporation Limited

Trading Rating

Investor Rating

ESG Refinitiv

C+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

0.8609 CNY

Average target price

1.037 CNY

Spread / Average Target

+20.50%

Consensus

EPS Revisions

Estimates Revisions

Quarterly revenue - Rate of surprise

Company calendar

Sector Telecommunication Construction

	1st Jan change	Capi.
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COMSYS HOLDINGS CORPORATION	+20.58%	2.85B
CHINA BESTER GROUP TELECOM CO., LTD.	-8.54%	1.29B
RUNJIAN CO., LTD.	-14.07%	1.29B
HELIOS TOWERS PLC	+5.96%	1.22B
MIRAIT ONE CORPORATION	+1.75%	1.13B
SITIOS LATINOAMÉRICA, S.A.B. DE C.V.	-23.52%	980M

Telecommunication Construction