Credit Suisse lowered its target price for China Tower (00788) to HK$2.25 from HK$2.55 and maintained its "outperform" rating.
The research house said China Tower's 2Q results were a "miss". The revenue growth disappointed, and EBITDA margin contracted. Its net profit delivered 20.7% growth, thanks to the interest costs declined.
Credit Suisse trimmed its FY2020 revenue and EBITDA forecasts by 2.1% and 2.8%. Given a larger-than-expected depreciation charge, and China Tower's high operational gearing, the cut to its net profit forecast was more material, at 18.3%.
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