External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>China Tower released its 1H25 earnings. Revenue went up by 2.8%/0.2% YoY/HoH to RMB49.6bn (vs. BBG consensus: RMB49.7bn).</li><li>NP went up by 8.0%/6.6% YoY/HoH to RMB5.8bn (vs. BBG consensus: RMB5.7bn). NPM slightly improved to 11.6%, 0.6ppt higher than 1H24/FY24.</li><li>1H25 revenue/NP accounted for 49%/50% of our FY25 projections, similar to 1H24. 1H25 EBITDA increased by 3.6% YoY to RMB34.2bn; while EBITDA margin was 69.0% (vs. 68.5% in 1H24). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Tower released its 1H25 earnings. Revenue went up by 2.8%/0.2% YoY/HoH to RMB49.6bn (vs. BBG consensus: RMB49.7bn).NP went up by 8.0%/6.6% YoY/HoH to RMB5.8bn (vs. BBG consensus: RMB5.7bn). NPM slightly improved to 11.6%, 0.6ppt higher than 1H24/FY24.1H25 revenue/NP accounted for 49%/50% of our FY25 projections, similar to 1H24. 1H25 EBITDA increased by 3.6% YoY to RMB34.2bn; while EBITDA margin was 69.0% (vs. 68.5% in 1H24). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Tower (788 HK) - 1H25 Results In-Line; Maintain HOLD

<ul><li>China Tower released its FY24 results. Revenue went up by 4.0% YoY to RMB97.8bn, in-line with our estimate and Bloomberg consensus.</li><li>Net profit went up by 10.0% to RMB10.7bn, 1.8% above our estimate but 2.2% below Bloomberg consensus.</li><li>By segment, Tower revenue (77% of total revenue) was RMB75.7bn, up 0.9% YoY, while DAS (9%) and Two Wings (14%) business continued to grow at double-digits, reaching RMB8.4bn (18% YoY) and RMB13.4bn (16% YoY). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Tower released its FY24 results. Revenue went up by 4.0% YoY to RMB97.8bn, in-line with our estimate and Bloomberg consensus.Net profit went up by 10.0% to RMB10.7bn, 1.8% above our estimate but 2.2% below Bloomberg consensus.By segment, Tower revenue (77% of total revenue) was RMB75.7bn, up 0.9% YoY, while DAS (9%) and Two Wings (14%) business continued to grow at double-digits, reaching RMB8.4bn (18% YoY) and RMB13.4bn (16% YoY). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Tower (788 HK) - 2024 Results In-Line with Expectations; Maintain HOLD

Thematic (Sector/Industry)

<ul><li>China’s stock markets (both A/H shares) have soared recently on government stimulus policies.</li><li>Per Reuters, Chinese stocks recorded their biggest single-day gains since 2008, with highest turnover (domestic A-share) on 30 Sep.</li><li>As of 2 Oct 2024, HSI and CSI 300 have surged 32.2% and 18.5% YTD, respectively, currently ranking as top performing indices globally. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China’s stock markets (both A/H shares) have soared recently on government stimulus policies.Per Reuters, Chinese stocks recorded their biggest single-day gains since 2008, with highest turnover (domestic A-share) on 30 Sep.As of 2 Oct 2024, HSI and CSI 300 have surged 32.2% and 18.5% YTD, respectively, currently ranking as top performing indices globally. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Semiconductors - Sector Valuation Revisit After Recent Rally; Potential Rerating Opportunities Ahead

<ul><li>China Tower released its 1H23 results, posting revenue and NP growth of 2.2% and 14.6% YoY.</li><li>The sales from the legacy business (81% of total revenue) declined by 2.9% YoY, mainly due to additional pricing discount under the new Commercial Pricing Agreement (the number should grow 3.4% YoY under previous agreement).</li><li>Their DAS and Two Wings business grew double-digit (30.4% in 1H23); however, the impact is minimal given their revenue contribution is less than 20%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Tower released its 1H23 results, posting revenue and NP growth of 2.2% and 14.6% YoY.The sales from the legacy business (81% of total revenue) declined by 2.9% YoY, mainly due to additional pricing discount under the new Commercial Pricing Agreement (the number should grow 3.4% YoY under previous agreement).Their DAS and Two Wings business grew double-digit (30.4% in 1H23); however, the impact is minimal given their revenue contribution is less than 20%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Tower (788 HK) – 2Q23 Results In-Line with Expectations

<ul><li>Our view on China telecom sector is unchanged. We think this sector is a defensive play amid macro-economic pressure.</li><li>We expect China telcos to be the most favorable defensive picks with stable operations, strong FCF, high dividend yield and potential share repo opportunities.</li><li>China Mobile and China Telecom’s (941 HK/ 728 HK, not rated) share prices grew 25.5%/23.8% YTD.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Our view on China telecom sector is unchanged. We think this sector is a defensive play amid macro-economic pressure.We expect China telcos to be the most favorable defensive picks with stable operations, strong FCF, high dividend yield and potential share repo opportunities.China Mobile and China Telecom’s (941 HK/ 728 HK, not rated) share prices grew 25.5%/23.8% YTD.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China 5G Sector – China telecom sector remains as a defensive play

China

China Tower Corporation Limited operates as a telecommunication company. The Company provides telecommunication towers construction, towers maintenance, ancillary facilities management, and other services. China Tower provides its services throughout China.

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China Tower (788 HK)