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788: Governance Reforms And Higher Multiple Will Shape Balanced Outlook

Decelerating 5G Expansion Will Erode Core Tower Value

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788
AnalystLowTarget
Not Invested
Published 10 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 20%
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AnalystLowTarget's Fair Value
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1Y
5.4%
7D
-1.2%

Analysts have raised their price target on China Tower from approximately $10.09 to $12.11 per share, citing a higher assumed future price to earnings multiple that more than offsets modestly lower forecasts for revenue growth and profit margins.

What's in the News

  • China Tower has scheduled a special and extraordinary shareholders meeting for December 23, 2025 at 14:30 China Standard Time in Beijing to consider major corporate governance changes (Key Developments).
  • The company is proposing amendments to its Articles of Association, Rules of Procedure for the General Meeting, and Rules of Procedure for the Board of Directors to update its governance framework (Key Developments).
  • Subject to shareholder approval, China Tower plans to abolish its Supervisory Committee and transfer its oversight functions and powers to the Board s audit committee, repealing related regulations (Key Developments).
  • A board meeting on October 16, 2025 will review and approve the financial results for the nine months ended September 30, 2025, providing an update on year to date performance (Key Developments).

Valuation Changes

  • Fair Value has risen moderately from HK$10.09 to HK$12.11 per share, reflecting a higher intrinsic value estimate for China Tower.
  • Discount Rate has increased slightly from 6.81 percent to 7.52 percent, implying a marginally higher required return for investors.
  • Revenue Growth has edged down from 3.06 percent to 2.64 percent, indicating slightly more conservative top line growth assumptions.
  • Net Profit Margin has decreased from 14.93 percent to 13.67 percent, reflecting expectations of somewhat lower profitability over the forecast period.
  • Future P/E has risen significantly from 12.2 times to 16.2 times, signaling a higher valuation multiple applied to China Tower’s expected earnings.

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.