[ET Net News Agency, 12 August 2020] Jefferies Research lowered its target price for
China Tower (00788) to HK$1.52 from HK$2.18 and downgraded its rating to "hold" from
"buy", noting a lack of positive catalysts in the next 12 months.
The research house said Tower's 1H results (EBITDA/EBIT) are weaker than expected driven
by only 1.6% growth in tower revenue, although partly offset by new energy revenue of
Rmb315m. Despite an increase of 215K 5G BTSes, TSP (telecommunications service providers)
tenancies rose by only 61K.
Jefferies expects continued growth pressure on tower revenue as the telcos squeeze for
opex and capex savings. It lowered its FY2020/21/22 net profit forecasts to RMB6,086mn,
RMB9,179mn, and RMB13,722mn from RMB6,146mn, RMB10,556mn, and RMB14,764mn. (KL)