[ET Net News Agency, 9 March 2021] Jefferies Research cut its target price for China
Tower Corporation (00788) to HK$1.38 from HK$1.44 and maintained its "hold" rating.
The research house said China Tower's 4Q 2020 results are in line, but 2020 capex was
Rmb9bn and 2021 guidance is Rmb3bn above Jefferies' estimate, mainly due to upgrading more
towers to be 5G ready.
Jefferies estimated only 19% of new 5G BTSes (base transmission system) turned into
tenancies in 2020, likely due to the retirement of 2G/3G and using 4G/5G integrated
antennas. 5G BTS build in 2021 will likely grow only 10-15%. (KL)