China Tower Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = HK$157.24b | Revenue (TTM) = HK$116.46b
Market Cap = HK$157.24b | Estimated Revenue = HK$118.82b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = HK$268.12b | Revenue (TTM) = HK$116.46b
Enterprise Value = HK$268.12b | Forward Revenue = HK$118.82b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
China Tower Stock Analysis
Analyst Opinions
12 Analysts have issued a China Tower forecast:
Analyst Opinions
12 Analysts have issued a China Tower forecast:
China Tower Events
Past Events
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AUG
11
Q2 2026 Earnings Call
about 2 months ago
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MAR
18
2025 Earnings Call
7 months ago
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StocksGuide Free
China Tower — Q2 2026 Earnings Call
1. Management Discussion
Present at today's event, we have the following management team: Mr. Zhang Zhiyong, Executive Director and Chairman of the company; Mr. Chen Li, Executive Director and General Manager of the company; Mr. Yin Wenkai, Executive Director; and our Chief Accountant, Mr. Hu Shaofeng.
Today's event will be divided into two parts. Firstly, the management team will give you a presentation on the overall operating performance of the company, and we are going to have the Q&A session.
Now first of all, I'm going to give the floor to our Chairman, Mr. Zhang Zhiyong, to tell you the overall performance of the company in the first half of the year of 2026. Thank you.
Ladies and gentlemen, good afternoon. Welcome to China Tower's 2026 Interim Results Announcement. Here, I'd like to express our gratitude to you for your long-term support and interest in China Tower. Today's presentation will be divided into three parts. First, I will report on the company's overall performance for the first half of 2026. Mr. Chen Li and Mr. Hu Shaofeng will then walk you through the business performance and financial performance, respectively. Lastly, we will take your questions during the Q&A session.
The PPT has already been uploaded to the official website of the company at noon. For the first half of the year, the highlights of the company's performance are mainly reflected in the following four aspects. First, net profit increased by 30.1% year-on-year. Second, revenue contribution from the Two Wings business increased to 16.3%. Third, we've made remarkable progress in the commercialization of technological achievements. Fourth, interim dividend increased by 44.3% year-on-year due to our very proactive dividend policy.
You can have a clearer idea of all these indicators on this slide. In terms of key indicators, the company recorded operating revenue of RMB 48.69 billion in the first half, down by 1.8% year-on-year. Net profit was RMB 7.49 billion, up 30% year-on-year. Operating cash flow amounted to RMB 7.14 billion. As at the end of June 2026, number of sites was 2.172 million, up by 2.5% year-on-year. Number of tenants reached 3.871 million, up by 0.7% year-on-year. The tower tenancy ratio stood at 1.78 tenants per site.
In the first half, the company actively seized the development opportunities brought by the strategies of Cyberpower, Digital China and Dual Carbon. Revenue from the TSP business reached RMB 40.36 billion, accounting for 82.9% of total revenue, as you can see from this pie chart and the bar chart. Revenue from the Two Wings business was RMB 7.92 billion, up by 14.2% year-on-year, with its share of total revenue further increasing to 16.3%. The One Core and Two Wings strategy continued to deepen.
For the TSP business, the company further implemented a national dual gigabit network joint entry campaign. In the first half of the year, revenue from the TSP business amounted to RMB 40.36 billion, down by 5% year-on-year, specifically driven by customers' network deployment, optimization adjustments, simplified base station upgrades and the continued developments of the 4G single network for China Telecom and China Unicom.
Revenue from our Tower business amounted to RMB 35.26 billion. So there is a decrease of 6.7% in our Tower business. Revenue from our DAS business amounted to RMB 5.09 billion, up by 9.2% year-on-year. So if we add these 2 together, we have a 5% decrease in terms of TSP business year-on-year. We're going to talk about this later.
And I'd say the impact is just temporary. Regarding the Smart Tower business, the company continued to cultivate key industries and key scenarios, supporting national strategies and major projects while steadily building growth momentum.
First, digital governance was strengthened. Second, the company continued to build innovative business models with strengthened product R&D, accelerated the development of low-altitude economy business and foster new growth drivers.
Third, overall capabilities were enhanced. The company strengthened the resource sharing capabilities of its nationwide distributed platform and developed large models across seven industry segments. And we try to empower the digital governance of our customers. Fourth, we consolidated the foundation for development.
The company enhanced product iteration development, strengthened the development of localized technical support teams and built a full chain network and information security system. In the first half, the Smart Tower business recorded revenue of RMB 5.33 billion, up 12.8% year-on-year.
As for the energy business, the company focused on its core businesses such as battery exchange and power backup and enhanced its market competitiveness by leveraging its key strengths in products, services and platforms.
First, the company accelerated product iteration and enhanced the performance of battery exchange and charging products, optimized the standardized power backup product metrics and promoted the application of integrated solutions.
Second, the company strengthened refined operations. It optimized the battery scheduling and recovery of degraded batteries, continued to enrich service options and improve user experience.
Third, the company promoted platform upgrades. It optimized the online marketing and asset management modules for battery exchange and charging, strengthened support capabilities, such as independent customer acquisition and intelligent scheduling and iterated and upgraded the energy butler platform to support the expansion of various integrated energy application scenarios in hospitals, campuses and others.
Fourth, the company enhanced its service capabilities. It upgraded its intelligent customer service, enhanced the customer service perception mass market, and continuously improve customer satisfaction. In the first half, the energy business generated revenue of RMB 2.59 billion, up 17.3% year-on-year. In the first half of the year, the company continued to deepen reform to improve quality and efficiency, fully unleashed its organic growth potential and consolidated the foundation for high-quality development.
First, we focus on optimizing the business layout. The company leveraged its resources strength in location plus computing plus power plus security to actively explore emerging businesses such as low-altitude economy and edge computing.
It improved the One Core and Two Wings entire product life cycle management system, strengthened the deep integration of technological innovation and business operations, enhanced product iteration development and supply capabilities and increased the supply of high-quality products.
Second, it strengthened frontline regional development. The resource support -- the company continuing to improve tiered management and resource support empower regional operations.
Third, it improved operational management efficiency. The company promoted the implementation of the One Core and Two Wings business system for large-scale construction and maintenance and realized intensive operation management, expanded One Code for All Applications, promoted intelligent operations and maintenance to achieve lean asset management. It also focused on key scenarios such as construction, maintenance and billing and revenue generation and strengthened the comprehensive coverage of AI+ to accelerate the digital intelligent transformation of production operations.
In the first half of the year, the company centered its efforts on the One Core and Two Wings business areas, concentrating achieving breakthroughs in technologies, accelerating the commercialization of research outcomes, and empowering the development of new quality productive forces, thereby delivering significant results in technological innovation.
First, we achieved breakthroughs in core technologies with a focus on next-generation mobile communication, AI and low-altitude economy. The number of granted patents increased by 132% year-on-year. Two new international standards were approved for project initiations. One of the projects won the second prize of the State Science and Technology Progress Award. Altogether, 133 awards were given out, and we got one of them.
Second, we accelerated the commercialization of our research outcomes and achieved the large-scale application of innovative products such as the new 5G leaky Coaxial cables, the Tower monitoring platform, and mid-high Point Video AI Algorithm and integrated energy service platforms. The Monitoring Spatial governance Data Set was selected as an outstanding achievement in the high-quality data sets for industrial applications from SOEs, while the Digital Intelligence and IoT Comprehensive Governance Scenario was selected as a strategic high-value AI application scenario for SOEs.
Third, we accelerated the upgrading of the innovation system. The company continued to advance the high-quality development of the 6 scientific technological innovation centers and actively participated in the development of Key Labs, Innovation Consortium and Consortium for the industrialization of technological achievements.
The company has always attached great importance to shareholders' returns maintained an active dividend policy and remained committed to sharing the benefits of its business development with all shareholders. So the Board of Directors has decided to distribute an interim dividend of RMB 0.19122 per share before tax, representing a year-on-year increase of 44.3%.
The cash flow was temporarily under pressure in the first half of the year. With our continuous effort, the situation is going to improve in the second half of the year. And that is why we are able to achieve a 44% increase in our dividend payout. In the future, the company will actively enhance corporate value and continue to deliver greater returns to all shareholders.
The company placed great emphasis on sustainable development and actively fulfill ESG responsibilities.
Firstly, we implemented green development. We coordinated advanced the co-building and co-sharing of digital infrastructure and expanded the application of clean energy such as PV at base stations. We also deepened the application of digital intelligence technologies.
Second, we strengthened our sense of responsibility. We improved network coverage in rural remote areas. And we provided emergency communication support for disaster prevention, response and relief. And safeguarding smooth rescue operation on-site command and communication security.
Third, we improved our corporate governance. We strictly complied with listing regulations and consistently maintain a high standard of corporate governance. We are committed to advancing the development of legal and operational compliance management systems and enhanced early risk warning and prevention capabilities. We also continue to improve the quality of our information disclosure, strengthen communication engagement with the capital markets and improve the transparency of the listed company.
Going forward, the company will remain committed to its One Core and Two Wings positioning focused on enhancing its core capabilities, raising our core competitiveness continue to deepen resource sharing, improve operational efficiency and create greater value for shareholders, customers and societies because China Tower is based on sharing. So that's where we're going to work on in the future.
On the TSP business front, the expansion of 5G and 5G coverage in both breadth and depth continued. We will fully capitalize on the development opportunities brought by national policies, including the upgrade the signal strength, expanding broadband coverage to border areas, forest and grasslands and upgrading saving action plan for 5G applications and high-quality urban development. The super position of national policies such as the construction of Six Networks brings broad opportunities for the company. The company will seize these opportunities to fully meet customer demands and help consolidate and enhance the competitive advantage and leading position of the telecom industry.
As for the Two Wings business, we will actively support digital intelligence governance and the transformation to green low-carbon development. We will continue to strengthen product innovation and optimize our business layout to drive the sustained and rapid development of the Two Wings business. And that wraps up my part.
Next, Mr. Chen Li, our General Manager, will present the details of the company's business performance. Thank you.
Thank you, Chairman. I will now present the company's operational performance for the first half of the year. This table outlines the revenue of our businesses and the relevant changes as well as the key operating data, which I will elaborate on. Regarding the Tower business, first, we provided embedded services that fully integrate with TSP's network planning, focusing on key scenarios such as capacity expansion and hotspot coverage enhancement in urban areas as well as broad rural coverage to support extensive and deep 5G network coverage.
Second, we proactively conducted coverage analysis, enhanced network optimization capabilities focused on solving customers' urgent and pressing concerns, leveraged our strength in resource coordination, tackled difficult site selection issues and strive to improve construction delivery efficiency.
Third, we improved support for the needs of key industries by fully implementing an integrated resources plus demand coordination approach and actively capturing the network coverage demand from key industries such as culture and tourism, education and transportation. In the first half of the year, the company constructed 187,000 5G base stations during the period, bringing the cumulative total to 3.31 million base stations with over 95% of 5G stations being built through the sharing existing sites. At the end of June, the number of TSP tenants stood at 3.565 million and the TSP tower tenancy ratio was 1.69.
As for the DAS business, First, we strengthened coordination with major project construction, accelerated demand acquisition, leveraged our advantages of coordinated site entry, promoted the implementation of mandatory regulations for telecom infrastructure acceptance and enhanced market service support.
Second, we stepped up innovation in DAS technologies, products and solutions, strengthened the implementation of new products and solutions such as active and passive DAS integration and shared model repeaters to unlock additional growth opportunities in DAS market.
Third, we focus on launches special campaigns targeting coverage elevators and underground parking garages as well as 5G upgrades for high-speed railways. We utilize shared low-power repeaters to reduce investment in signal resources and transmission infrastructure. While continuously improving the level of professional services. In the first half of the year, revenue from the DAS business reached RMB 5.09 billion, representing a year-on-year increase of 9.2%. A total of 1.02 billion square meters of building floor areas was added, bringing the total coverage to 16.17 billion square meters. We also added 2,450 kilometers of coverage in subways and railway tunnels with total coverage reaching 36,111 kilometers. The scale of the DAS business continued to expand.
Regarding the Smart Tower business, the company focuses on special digital intelligence governance and continues to deepen its presence in key industries and scenarios. More than 260,000 digital towers are widely serving over 10 industries, including land resources, emergency response water conservancy and environmental protection with market share steadily increasing in key areas such as on Straw burning provision, Farmland protection, Disaster alert.
In the first half of the year, Smart Tower business maintained its growth momentum. Revenue from the monitoring business reached RMB 3.2 billion, representing a year-on-year increase of 13.5% (sic) [ 13.4% ] and accounting for 60% of the Smart Tower business revenue. Revenue from the sharing business reached RMB 2.13 billion, representing a year-on-year increase of 12.1% (sic) [ 12.0% ]. In the first half of the year, the company will leverage its advantages in mid- and high point site resources and continue to strengthen the operating capabilities of the Smart Tower business.
In terms of the platform capabilities, we strengthened nationwide platform sharing, established a tiered platform architecture system and developed flexible support capabilities for multiple scenarios and differentiated needs. Enabling rapid and precise adaptation to customers' needs. In terms of algorithm capability, we leverage the data advantages of our sample library of more than 1.1 billion mid-to high point samples to improve the efficiency of algorithm R&D iteration, thereby continuously consolidate our competitive edge in this area.
In terms of product capabilities, we continue to deepen our capabilities in industry application and proactively explore new business products. In terms of service capabilities, we implemented a major infrastructure framework to enhance delivery capabilities. In terms of innovation capabilities, we deepened the commercialization of large models and intelligent agents and fully unleashed innovation momentum by leveraging the nation innovation platform for industry-education integration post doctoral workshops.
As for the development of the battery exchange business, first, the company continued to strengthen user operations and enhance the user experience through measures such as expanding the VIP user base, enriching user rights and benefits, resulting in a further expansion of the customer base for its battery exchange and charging business. As of 30th June 2026, the company had 1.493 million battery exchange users, further consolidating its market leadership.
Second, the company accelerated network construction and continuously optimized the layout of the battery exchange and charging network and battery algorithms, effectively improving user convenience and expanding the user base. As of 30th June 2026, the company had launched battery exchange and charging services in more than 340 cities. Revenue from the battery exchange business reached RMB 1.6 billion in the first half of the year, up 20.6% year-on-year, maintaining sound growth momentum.
As for the power backup business, the company continued to strengthen product promotion by launching multiple high-performance power supply security products for key scenarios. It developed multiple PV and energy consumption management products to meet customers' needs for power supply security, carbon reduction and energy conservation. The company continued to enhance service support by strengthening the development of the companion service system for corporate customers and continuously improving capabilities in demand response, project delivery and maintenance support.
The company also continued to advance platform upgrades by iterating and upgrading application modules for various scenarios to address customers' diverse needs, enhancing digital operational capabilities and promoting visualization and refine control throughout the entire process. In the first half of the year, revenue from the power backup business reached RMB 1 billion, up 12.4% year-on-year, continuing its robust growth momentum.
Next, Mr. Hu Shaofeng will present the financial performance for the first half of the year. Thank you.
Thank you, Mr. Li. This table shows our key financial indicator for the first half of 2026. In the first half of the year, the company maintained stable overall performance, effectively managed cost and expenses, further improved profitability and sustained a sound capital structure.
In the first half of the year, operating expenses totaled RMB 37.58 billion, down 8.3% year-on-year. The operating expense accounted for 77.2% of operating revenue, down 5.4% year-on-year. In terms of depreciation and amortization, it amounted to RMB 19.14 billion in the first half of the year, down 25.2% year-on-year or RMB 6.46 billion. This was primarily due to the expiration of the depreciation period for the acquired tower assets and adjustment to the depreciation period for DAS assets.
In terms of repairs and maintenance expenses, it totaled RMB 3.79 billion, up 19% year-on-year or RMB 600 million. This was mainly due to the company's continued strengthening of special rectifications for identifying and addressing potential asset risks. Employee benefits and expenses totaled RMB 4.84 billion in the first half of the year, up 1.6% year-on-year or RMB 80 million. This was due to the company's efforts to advance R&D innovation and regional management reform. Sites operation and support expenses totaled RMB 2.89 billion in the first half of the year, representing a year-on-year increase of 14% or RMB 350 million. This was mainly due to the company's accelerated development of site operations and digital capabilities and others. Other operating expenses totaled RMB 6.92 billion, up 41.6% year-on-year or RMB 2.03 billion. This is mainly due to various increase in our marketing expenses and costs related to integrating services increased by RMB 810 million and the provision for bad debt increased by RMB 514 million year-on-year.
In the first half of the year, the company recorded operating profit of RMB 11.111 billion. Net profit attributable to owners of the company was RMB 7.49 billion, up 30.1% year-on-year. EBITDA for the first half of the year was RMB 30.25 billion, down 11.6% year-on-year, mainly due to lease terminations resulting from the network optimization adjustment by TSP customers, the impact of utra lean site upgrades and the increase in maintenance expense related to the service life expansion -- extension of Tower assets.
The company made effective investments in line with its business development and building needs. Capital expenditure for the first half year was RMB 11.65 billion, down 6% year-on-year or RMB 740 million. CapEx for new site construction and augmentation totaled RMB 6.49 billion, down 1.7% year-on-year. CapEx on site replacement improvement amounted to RMB 2.09 billion (sic) [ RMB 2.07 billion ], down 12.2% year-on-year. CapEx on IT support and purchase of comprehensive product facilities amounted to RMB 450 million, down RMB 490 million. CapEx for the Two Wings business totaled RMB 2.62 billion, up 6% year-on-year.
Cash flow was temporarily under pressure for the first half of the year. Operating cash flow was RMB 7.14 billion, down RMB 21.54 billion year-on-year. This was mainly attributable to longer customer payment cycles and increase in collections settled by bills. Free cash flow for the first half of the year was negative RMB 4.52 billion.
As of the 30th of June 2026, the company's Total assets stood at RMB 351.24 billion. Total liabilities amounted to RMB 145.53 billion, which RMB 94.74 billion was net debt. The company's liability-to-asset ratio was 41.4%. The company will continue to deepen its One Core and Two Wings strategy, building its professional, intensive, dedicate, efficient, and digitalized operating system. It will also strengthen effective investment, enhance its lean management capabilities and drive continuous improvements in operational efficiency and effectiveness to drive the sustainable and healthy growth of the company and create greater value for shareholders.
Thank you.
[Statements in English on this transcript were
Spoken by an interpreter present on the live call.]
China Tower — Q2 2026 Earnings Call
China Tower — 2025 Earnings Call
1. Management Discussion
So present at today's event, we have the following management team, Mr. Zhiyong Zhang, Executive Director and Chairman of the company. Mr. Li Chen, Executive Director and General Manager; and Mr. Shaofeng Hu, Chief Accountant of the company. Today's presentation is divided into two parts. Firstly, the management team is going to present on the performance of the company for the year 2025, and then we're going to have the Q&A session.
Now we're going to give the floor to Chairman, and he's going to present you on the overall performance of the company for the year 2025.
Ladies and gentlemen, welcome to the 2025 annual results announcement of China Tower. And I'd like to take this opportunity to thank you for your ongoing support and interest in our company. Today's presentation is divided into three parts: First, I'm going to talk about the overall performance of the company; and then we are going to look at the business performance and financial performance of the company. I will be firstly present to you about the overall performance of the company for 2025. And then General Manager, Mr. Li Chen, and Chief Accountant, Mr. Shaofeng Hu, are going to talk about business performance and financial performance. And finally, we are going to answer your questions together.
For last year, through our efforts we have the following highlights for the company's performance. Firstly, the overall operational performance remained robust, with net profit increasing 8.4% year-on-year. Secondly, a multi-pillar development structure has taken shape with revenue from the Two Wings business increasing to 14.9%. Thirdly, we actively served digital governance with 252,000 digital towers serving thousands of industries. Fourthly, we continue to enhance technological innovation with R&D expenses increasing by 80.2% year-on-year. Fifthly, we placed strong emphasis in shareholders' returns with a full year dividend payout ratio rising to 77%.
In terms of key indicators, we have a chart here. As you can see, the overall performance is very good. The company recorded operating revenue of RMB 100.4 billion, up 2.7% year-on-year and 3.1% on a comparable basis. That's to consider the differences in electricity or energy price. Net profit was RMB 11.63 billion, up 8.4% year-on-year, EBITDA totaled RMB 65.81 billion, down 1.1% year-on-year due to increase in talent termination orders resulting from the integration of networks, the growth rate of the number of talents has slowed down. As of the end of 2025, the number of talents reached 3.856 million with the tower tenancy ratio of 1.79, slightly lower than that of last year.
The company's cash flow remained sound in 2025. Net cash flow generated from operating activities for the year was RMB 56.12 billion, up RMB 6.65 billion year-on-year. Free cash flow was RMB 26.63 billion, up RMB 9.1 billion year-on-year. In 2025, the company continued to seize the opportunities arising from the Separate China and Digital China initiatives and the dual carbon goals.
All business segments performed in line with expectations, achieved a steady overall growth as you can see from the chart. For our GSP business, its revenue reached RMB 84.73 billion, accounting for 84.4% of total revenue. Revenue from the Two Wings business was RMB 14.99 billion. That's close to RMB 15 billion, up 11.9% year-on-year growth of 14.9% on a comparable basis, accounting for 14.9% of total revenue. The One Core and Two Wings strategy continued to solidify. Regarding the TSP business, the company continues to strengthen its new 5G telecommunication infrastructure and implemented specialized projects such as the signals upgrades and the extension of broadband coverage to all border areas and forests.
As a result, TSP business remained stable. For Tower business, capitalizing our clients' ongoing network expansion and leveraging its competitiveness strengths of efficient delivery, superior maintenance and optimal cost structure while minimizing management risks. The company built 364,000 5G stations during the year. bringing the total to 3.123 million. More than 95% of 5G projects were delivered through site colocation, helping operators effectively deploy and centralize the 5G network.
For DAS business, the focus was on high value and livelihood scenarios while strengthening capabilities in resource coordination and sharing and collaborative construction. In 2025, a total of 2.47 billion square meters of building floor areas was added, bringing the total coverage to 15.15 billion square meters.
We also added 4,346 kilometers of coverage subways and railway tunnels with total coverage reaching 33,661 kilometers. Total coverage continued to expand steadily. Regarding Smart Tower business, the company has firmly established itself in special digital intelligence governance field, leverages rich resources and capabilities. It continued to perform well in Smart Tower business with revenue exceeding RMB 10 billion. First, we continue to deepen key industries and scenarios and steadily increase our market share in key areas such as straw burning, farmland protection and disaster alerts.
Secondly, we continue to advance our nationwide one single network for the distributed platform and promoted the application and implementation of large models for special governance industries in key scenarios, thereby enhancing the competitiveness of industry products. Thirdly, we continue to develop high standard service systems and reinforced unified local support and service teams to ensure a swift response to customers' reiterative development requirements and continuously enhance our companion service capabilities.
Fourthly, we deepened the closed-loop management of network information security risks and carried out special initiatives to comprehensively enhance technical protection capabilities for network information security across terminals, cloud networks, platforms and data. In 2025, the Smart Power business maintained rapid growth with revenue reaching RMB 10.17 billion, up 14.2% year-on-year. In the Energy business, the company focused on cooperation such as battery exchange and power backup, enhanced refined operation capabilities, strengthened core competencies in products, services and platforms and continue to develop the energy business in a professional manner.
Firstly, in terms of product and upgrades and iterations, we completed functional enhancements for battery exchange products, continue to improve the overall performance of the battery exchange systems, enriched a standardized product system for power backup and promoted China Tower's comprehensive energy butler industry solution.
Secondly, we strengthened platform support, we enriched intelligent analysis models comprehensively upgraded the core functions of the energy butler platform and improve the platform support capabilities. Thirdly, we deepened refined operations. We strengthened asset management across the entire life cycle, conducted impact analysis of asset value and improved asset utilization efficiency. We also enhanced the VIP user operation system to improve the ability to manage user segmentation. Fourthly, we optimize services, we strengthened the development of C-end intelligent customer service, optimize the B-end companion service system and continue to improve service satisfaction. The Energy business achieved revenue of RMB 4.81 billion for the full year, a 7.5% increase year-on-year, a 16.5% increase year-on-year on a comparable basis with development momentum continuing to strengthen.
In 2025, the company strengthened to deepen reforms and improvements, injecting new impetus to the high-quality development of our business. Firstly, we accelerated the deployment of the strategic layout in emerging industries, actively promoted the implementation of the 100 major projects, strengthened the integrated support of industry plus technology plus talent, accelerated the commercialization of technological achievements and actively explore new sectors such as low-altitude economy and edge computing.
Secondly, we shifted resources to the frontline regions, implemented tier management and targeted policies and improved the valuation incentive mechanisms, foster an atmosphere of competitive excellence. We enhanced efficiency and prevented risks through lean management, promoted integration empowerment through digital intelligence transformation and optimize systems and capabilities through intensified operation. The company continued to strengthen its research on key technologies, accelerated the transformation of scientific and technological achievements and stepped up efforts in scientific and technology innovation.
First, we focus on R&D breakthroughs in key areas, including next-generation mobile communications, AI, low-altitude economy and edge computing networks. The number of invention patents offer us through the year increased by 50.4% year-on-year. Second, we focused on the commercialization of achievements and promoted the large-scale application of innovative products, such as shared micro repeaters, edge gateways and the One Core for All Solution. Thirdly, We're focused on refining the innovation system. The 6 scientific and technological innovation centers achieved through high-quality development while high-level platforms such as post-doctoral workstations and joint innovation centers were upgraded and expanded. The Company participated in the formulation of 9 international standards and total 16 new technology awards at Provincial or ministerial level and above were received during the year, further strengthening our scientific and technological innovation system.
The company has always adhered to the philosophy of giving back to our shareholders, maintaining a proactive and stable dividend policy to share the fruits of its business development with all shareholders. The Board of Directors recommended a payment of a final dividend together with the already distributed interim dividend increased by 9.8% compared with last year, and full year dividend payout ratio rose to 77%.
In the future, the company will continue to strengthen our competitiveness, consolidated our development foundation and comprehensively enhanced operational quality, efficiency and profitability whilst driving to generate greater value for shareholders. The company has consistently promoted the deep integration of ESG into its operations, impending the philosophy of social responsibility throughout its entire development programs.
In terms of social responsibility, the company established a highly efficient emergency communication support system to fully ensure the smooth running of rescue operations, on-site command and communication security during emergency operations. We have supported natural infrastructure in rural remote areas, empowering rural revitalization through digitalization. We also built rider homes to foster a sense of community and convey cities care and warmth. In terms of green development, the company practiced shared green and low carbon operations, we vigorously promoted energy conservation and emission reduction at base stations and expanded the application of green energy, such as the use of PV and energy storage. We will also deepen the application of digital intelligence to empower ecological conservation, promote green travel, encourage convenient, low-carbon lifestyles.
In terms of the governance foundation, the company continuously enhanced its corporate governance standards and compliance management capabilities through our clearly defined governance mechanism, a sound compliance management system and a transparent information disclosure and investor communication. Looking ahead, the company will continue to uphold the philosophy of resource sharing and anchor its positioning as a 3 service provider. And you can find information on the slide and adhere to the One core, Two Wings strategy to continuously enhance core capabilities and core competitiveness.
In terms of the TSP business, we will seize the opportunities presented by signal upgrade and expansion of broadband coverage to all border areas and forest and grassland, the upgrade of saving action plan as well as high-quality urban development strategy centered on innovation resilience and Smart have brought vast development opportunities, reinforce our competitiveness as a service provider offering efficient delivery, superior maintenance and optimal cost structure while minimizing management risks to realize stable development. As for the Two Wings business, the company will deepen the development of core resources and expand the development of new markets such as low attitude economy, edge computing, battery charging and exchange and PV energy storage. This will help to nurture, enhance capabilities of demand acquisition.
Now I'm going to give the floor to Mr. Chen Li, who is going to talk about the business performance of the company.
Thank you, Mr. Chairman. Now I'm going to report to you the business development of the company. As you can see from the slide, the company's various business performed very well. Now I'm going to provide you with further explanation. In 2025, the company's various business performed very well and that multi-pillar revenue growth pattern continues to take shape. Operating revenue reached RMB 100.41 billion, representing a year-on-year increase of 2.7% and a growth of 3.1% on a comparable basis.
In terms of growth structure, the TSP business maintained sound development, thanks to the decrease of lower site fees, power generation costs and other social expenses, together with the impact from the increase in talent termination orders resulting from the integration of networks, revenue from the Tower business recorded a slight decrease.
The DAS business developed rapidly with an incremental contribution of 26.7%, representing an increase of 0.8 percentage points. The incremental revenue contribution from Two Wings business reached 65.1% of which the Smart Tower business contributed 42.3% driving revenue growth by 1.3 percentage points. The incremental revenue contribution from the energy business was 22.8%, a growth of 0.7 percentage points.
Next, I'm going to provide a detailed overview of the development of our key businesses. Regarding the tower business, the company focused on addressing customers' needs. Firstly, we fully implemented embedded service mechanisms to continuously meet customers' demands for in-depth and broad coverage. Secondly, we enhanced network optimization capabilities, strengthened collaboration with TSPs and precise planning and construction to better serve customers. Thirdly, we adhere to a customer-oriented philosophy, the needs of network coverage in culture and tourism, education, transportation, other sectors and constantly optimized business processes and management, comprehensively enhance the capabilities in demand acquisition, resource coordination and sharing customer service.
And revenue from the tower business reached RMB 75.5 billion. As of the end of 2025, the number of TSP talents reached 3.567 million, up 0.6% year-on-year. The TPS tenancy ratio was 1.7, maintaining steady overall development. As for the DAS business, we leveraged the integrated resources plus demand development model to continuously solidify our competitiveness as a service provider. We did this by offering efficient delivery, superior maintenance and optimal cost structure while minimizing management risks and actively expanding the DAS market.
We deeply cultivated the niche market seizing opportunities from the signal upgrade initiative to focus on the coverage of DAS business. We also collaboratively advance special projects such as elevators, underground parking lots and 5G network upgrades on high-speed railways. At the same time, we strengthened our innovation leadership by driving innovation in active+passive products striving to enhance the market competitiveness of [indiscernible] type products and solutions. We also leveraged a series of innovative products as shared micropower repeaters and 5G spread-spectrum leaky coaxial cables.
And revenue from the DAS business totaled RMB 9.23 billion, a year-on-year increase of 9.5%. Regarding the Smart Tower business, we have our [indiscernible] in the field of special digital governance, leverage outreach resources and capabilities, we continue to deeply cultivate key industries and scenarios, upgrading 252,000 telecommunication towers to digital towers steadily increased our market share in areas such as straw burning bans, farmland protection and disaster alerts. In 2025, the Smart Tower business maintained rapid growth. Revenue from the tower monitoring business reached RMB 6.33 billion, a year-on-year increase of 14.3%, accounting for 62.2% of total revenue from the Smart Tower business.
Revenue from the Tower Sharing business reached RMB 3.84 billion, up 14% year-on-year, accounting for 37.8% of the total Smart Tower revenue. In developing Smart Tower business, the company leveraged its mid-to-high point set resources to continuously advance 5 core competencies. Firstly, we deepened the operational capabilities of distributed platform, strengthened the collaborative platform service responded quickly and precisely to customer needs and enhance service value.
Secondly, we continuously consolidate the advantages of mid- to high point algorithms, utilizing our library of 900 million mid-to-high point samples. We strive to achieve greater algorithm, accuracy, faster R&D iteration and broader service scenarios. Thirdly, we have constantly improved product capabilities by establishing a nationwide integrated R&D iteration system, 15 specialized industry applications now cover over 30 business scenarios, ensuring efficient sharing of product capabilities.
Fourthly, we continuously enhance service capabilities. We implemented the major infrastructure system to strengthen project delivery, deepened professional operations and maintenance and reinforced network management platform to ensure high-quality operation of clients' businesses. Fifthly, we continue to strengthen our innovation capabilities, which drove technological breakthroughs in key fields to promote the commercialization of large models and leveraged the national postdoctoral research workstation to enhance our innovation capacity. Regarding the development of the battery exchange business, the company continues to deepen user operation strategies while improving operational levels across product, services, benefits and marketing.
For example, we increased the allocation ratio of 0.0 battery exchange products, focus on R&D for next-generation 5.0 exchange products in areas such as battery lifespan and discharge performance centered on customer satisfaction and constructed a full process smart service system to elevate user experience.
We accelerated the construction of community charging infrastructure networks to expand the scale of the user base. Through these measures, we effectively elevated the user experience and customer satisfaction, boosted user stickiness and maintained steady growth in the number of battery exchange users throughout the year.
As of December 31, 2025, China Tower had approximately 1.477 million battery exchange users, an increase of 173,000 from the end of the previous year, further solidifying its leading position in the low-speed electric vehicle battery exchange markets. The battery exchange business recorded revenue of RMB 3.03 billion for the year, up 22.4% year-on-year on a comparable basis, maintaining its market-leading position. Regarding the development of the power backup business, First, we delay cultivated key industries by developing standardized products for typical scenarios and enabling one-stop access to an advanced R&D innovation and regional management reforms, the company recruited additional mid- and senior level scientific and technical talent, original management personnel, while strengthening performance-linked incentives to boost its development momentum.
Second, we upgraded the service model of China Tower's Energy Butler platform to enrich various industry application scenarios and meet customers' needs for power supply security, carbon reduction, energy conservation and carbon reduction. Third, we optimized the company service system, leverage outlook maintenance capabilities to improve rapid response capabilities. The revenue from power backup totaled RMB 1.78 billion for the year, up 7.7%.
Now Mr. Shaofeng Hu will present the company's financial performance for 2025.
Thank you, Mr. Li Chen. Now I'm going to talk about the key financial performance for 2025. The table shows our key financial indicators for 2025. In 2025, the company's overall performance was sound. Revenue grew steadily. Profitability continued to improve, cash flow improved gradually, and the robust capital structure was maintained. In 2025, the company implemented special projects to reduce costs and increase efficiency.
We strictly manage the income to expenditure ratio, prioritizing production, expenditure directly related to the expansion of the One Core and Two Wings business. Reasonable measures were taken to expand the lifespan of aging assets and maintain the sustained a healthy operation of assets. In 2025, operating expenses totaled RMB 83.05 billion, up 2% year-on-year.
The operating expense revenue ratio was 82.7%, down 0.6% year-on-year, depreciation and amortization expenses totaled RMB 48.45 billion down 3.5% year-on-year, mainly due to the adjustment of depreciation period for DAS assets and the expiration of depreciation for tower assets acquired to 2015. Repair and maintenance expenses totaled RMB 7.10 billion, up 1.6% year-on-year as the tower assets acquired by the company gradually expire, it is reasonable extending the lives of the aging assets, strengthening safety hazards inspection and rectification for assets and continuously promoting the construction application of intelligent operation and maintenance functions.
In terms of employee and benefits expenses, it totaled RMB 10.08 billion, up 5.3% year-on-year. To advance R&D innovation and regional management reforms, the company recruited additional mid- and senior level scientific and technical talent and regional management personnel, while strength in the performance-linked incentives to boost this development momentum.
Site operation and support expenses totaled RMB 6.13 billion, up 11.3% or RMB 620 million year-on-year. The company accelerates the development of site operations and digital capabilities resulting in a year-on-year increase of RMB 760 million in costs and IT support expenses related to site operations.
Other operating expenses totaled RMB 11.29 billion, up 23.5% or RMB 2.15 billion year-on-year. Business development expenses increased by RMB 1.08 billion, primarily due to increased expenditure on localized technical support services and marketing costs to support the development of the Two Wings business and advanced the construction of companion services systems and platform operation management capabilities.
Other expenses increased by RMB 1.07 billion, mainly due to an increase in provisions for bad assets of approximately RMB 550 million based on a prudent approach as well as a decrease in net gains from asset disposals of approximately RMB 260 million.
In 2025, adherent to an efficiency-oriented approach, the company stepped up efforts benchmark costs of the individual sites and reduce expenses while increasing efficiency, thereby maintain stable profit growth. Operating profit reached RMB 17.36 billion in 2025, up 6.3% year-on-year. Net profit attributable to parent company reached RMB 11.63 billion, up 8.4% year-on-year. The company's EBITDA reached RMB 65.81 billion, down 1.1% year-on-year, mainly due to the company's reasonable extending the service life of each asset strengthen the building of digitalization capabilities, et cetera.
EBITDA accounted for 65.5% of operating revenue. In 2025, the company adhered to a total CapEx plus project link investment management model, aligning total investment aldication with the overall needs of business development and capacity building. It continues to improve the pre-assessment and post-evaluation of projects with CapEx totaling RMB 29.49 billion for the year, down 7.7% year-on-year.
CapEx for the new construction and augmentation totaled RMB 15.3 billion, down 15.8% year-on-year. This was primarily due to changes in operational demand as well as the company's ongoing optimization of construction plans and adoption of innovative products. CapEx for site replacement improvement reached RMB 5.47 billion, down 19.9% year-on-year.
This was mainly attributable to the company's focus on conducting safety hazard inspection and electrification and others. Capital expenditure for Smart Tower and energy facilities amounted to RMB 5.97 billion, up 24.8% year-on-year. This was mainly due to the company's efforts to adapt the development needs of the Two Wings business, accelerate the construction of a Smart Tower business platform and payment product iteration and upgrading. In 2025, the company accelerated advancing the collection of payments for the One Core and Two Wings business, the net cash flow from operating activities for the year amounted to RMB 56.12 billion, up RMB 6.65 billion year-on-year.
Free cash flow reached RMB 26.63 billion, up RMB 9.8 billion year-on-year. As of the end of 2025, the company's total assets stood at RMB 336.58 billion. Total liability was RMB 132.67 billion, of which RMB 78.15 billion was net debt. The company's liability to asset ratio was 39.4%, net gearing ratio was 27.7%. In 2026, the company will continue to deepen its One Core and Two Wings business strategy, building upon its professional intensive, dedicate efficient and digitized operating system. It will enhance its lean management capabilities and drive continuous improvement in operational efficiency and effectiveness to drive the sustainable and healthy growth of the company and create great value for shareholders. Thank you.
Financial data from China Tower
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 116,459 116,459 |
0%
0%
100%
|
|
| - Direct Costs | 8,845 8,845 |
21%
21%
8%
|
|
| Gross Profit | 107,614 107,614 |
1%
1%
92%
|
|
| - Selling and Administrative Expenses | 32,963 32,963 |
13%
13%
28%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 72,367 72,367 |
8%
8%
62%
|
|
| - Depreciation and Amortization | 49,154 49,154 |
18%
18%
42%
|
|
| EBIT (Operating Income) EBIT | 23,214 23,214 |
23%
23%
20%
|
|
| Net Profit | 15,639 15,639 |
20%
20%
13%
|
|
In millions HKD.
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Company Profile
China Tower Corp., Ltd. engages in the business of constructing and operating telecommunications towers. The firm is also involved in the provision of telecommunications tower site space; maintenance and power services; indoor distributed antenna systems and other trans-sector site application and information services; and Energy business. The company was founded on July 15, 2014 and is headquartered in Beijing, China.
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| Head office | China |
| CEO | Li Chen |
| Employees | 25,074 |
| Founded | 2014 |
| Website | www.china-tower.com |
