OTCPK:CHWR.F

Stock Analysis Report

Executive Summary

China Tower Corporation Limited provides telecommunication tower infrastructure services in the People's Republic of China.

Snowflake

Fundamentals

Proven track record with reasonable growth potential.

Share Price & News

How has China Tower's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.7%

CHWR.F

-0.3%

US Telecom

1.0%

US Market


1 Year Return

27.3%

CHWR.F

10.9%

US Telecom

6.7%

US Market

Return vs Industry: CHWR.F exceeded the US Telecom industry which returned 10.9% over the past year.

Return vs Market: CHWR.F exceeded the US Market which returned 6.7% over the past year.


Share holder returns

CHWR.FIndustryMarket
7 Day-8.7%-0.3%1.0%
30 Day-16.0%-1.0%-1.8%
90 Day-19.2%7.1%-1.8%
1 Year27.3%27.3%16.7%10.9%9.1%6.7%
3 Yearn/a19.6%2.2%46.1%36.6%
5 Yearn/a39.4%7.7%66.9%48.6%

Price Volatility Vs. Market

How volatile is China Tower's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Tower undervalued based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CHWR.F ($0.21) is trading below our estimate of fair value ($0.35)

Significantly Undervalued: CHWR.F is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: CHWR.F is poor value based on its PE Ratio (68.1x) compared to the Telecom industry average (18.7x).

PE vs Market: CHWR.F is poor value based on its PE Ratio (68.1x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: CHWR.F is poor value based on its PEG Ratio (2.4x)


Price Based on Value of Assets

PB vs Industry: CHWR.F is overvalued based on its PB Ratio (1.5x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is China Tower expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CHWR.F's forecast earnings growth (28.5% per year) is above the savings rate (2.7%).

Earnings vs Market: CHWR.F's earnings (28.5% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHWR.F's revenue (7.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CHWR.F's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CHWR.F's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has China Tower performed over the past 5 years?

79.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHWR.F's earnings have grown significantly by 79.9% per year over the past 5 years.

Accelerating Growth: CHWR.F's earnings growth over the past year (96.2%) exceeds its 5-year average (79.9% per year).

Earnings vs Industry: CHWR.F earnings growth over the past year (96.2%) exceeded the Telecom industry -23%.


Return on Equity

High ROE: CHWR.F's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: CHWR.F's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: CHWR.F has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Tower's financial position?


Financial Position Analysis

Short Term Liabilities: CHWR.F's short term assets (CN¥38.9B) do not cover its short term liabilities (CN¥118.8B)

Long Term Liabilities: CHWR.F's short term assets (38.9B) exceeds its long term liabilities (36.4B)


Debt to Equity History and Analysis

Debt Level: CHWR.F's debt to equity ratio (52.8%) is considered high

Reducing Debt: Insufficient data to determine if CHWR.F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CHWR.F's debt is well covered by operating cash flow (51.4%).

Interest Coverage: CHWR.F's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: CHWR.F has a high level of physical assets or inventory.

Debt Coverage by Assets: CHWR.F's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is China Tower's current dividend yield, its reliability and sustainability?

1.81%

Expected Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years1.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CHWR.F's dividend (0.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CHWR.F's dividend (0.14%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: CHWR.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CHWR.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CHWR.F is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHWR.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of China Tower's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Xiaomin Gu (55yo)

0.3yrs

Tenure

0

Mr. Xiaomin Gu has been General Manager of China Tower Corporation Limited since June 10, 2019 and served as its Deputy General Manager from August 2014 to June 10, 2019 and has been its Chairman of the La ...


Management Age and Tenure

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: CHWR.F's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

55yo

Average Age

Experienced Board: CHWR.F's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Jilu Tong (60yo)

    Chairman

    • Tenure: 1.6yrs
  • Ka Chu

    Company Secretary

    • Tenure: 0yrs
  • Xiaomin Gu (55yo)

    GM & Executive Director

    • Tenure: 0.3yrs
  • Chunlei Gao (52yo)

    Chief Accountant

    • Tenure: 5.2yrs
  • Baotian Sun (56yo)

    Member of the Senior Management

    • Tenure: 2.9yrs
  • Guofeng Liu (49yo)

    Deputy General Manager

    • Tenure: 0.3yrs

Board Members

  • Jilu Tong (60yo)

    Chairman

    • Tenure: 1.6yrs
  • Cheng Fan (64yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Li Su (63yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Yung Hoi Tse (66yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Guanglu Shao (55yo)

    Non-Executive Director

    • Tenure: 5.3yrs
  • Zhiyong Zhang (53yo)

    Non-Executive Director

    • Tenure: 1.4yrs
  • Xin Dong (53yo)

    Non-Executive Director

    • Tenure: 1.4yrs
  • Wenmin Li (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 1.4yrs
  • Hongwei Wang (52yo)

    Supervisor

    • Tenure: 1.4yrs
  • Xiaomin Gu (55yo)

    GM & Executive Director

    • Tenure: 0.3yrs

Company Information

China Tower Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Tower Corporation Limited
  • Ticker: CHWR.F
  • Exchange: OTCPK
  • Founded: 2014
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$308.015b
  • Listing Market Cap: HK$39.268b
  • Shares outstanding: 176.01b
  • Website: https://www.china-tower.com

Number of Employees


Location

  • China Tower Corporation Limited
  • No. 73, Fucheng Road
  • 19th Floor
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
788SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDAug 2018
CHWR.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDAug 2018
788SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDAug 2018
788SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDAug 2018
788 NBMV (Bolsa Mexicana de Valores)YesForeign Shares-Foreign ListedMXMXNAug 2018

Biography

China Tower Corporation Limited provides telecommunication tower infrastructure services in the People's Republic of China. The company offers towers, and shelters or cabinets; and ancillary equipment to t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:22
End of Day Share Price2019/10/10 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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