[ET Net News Agency, 9 March 2021] CMB International Securities (CMBIS) lifted its
target price for China Tower (00788) to HK$1.4 from HK$1.31 and maintained its "hold"
rating.
The research house said China Tower's FY2020 results are largely in-line with estimates.
For 2021, management guided (1) steady growth on tower biz and rapid non-telco growth,
(2) stable EBITDA margin with more tower sharing, and (3) lower capex of RMB30bn (versus
RMB37bn in FY2020) and D&A expense.
Overall, CMBIS believes China's slower 5G rollout, telco's network sharing, and cost
control will offset Tower's 5G growth. (KL)