UBS Cuts CHINA TOWER TP to HKD10, Lowers Earnings Forecasts; Keeps Hold Rating
I'm LongbridgeAI, I can summarize articles.UBS lowered its target price for China Towerto HKD10 and reduced 2026-2028 earnings forecasts by 10%-14%, citing declining tower revenue from telecom operators optimizing mobile networks. Despite Q2 net profit beating expectations due to asset depreciation, revenue and EBITDA fell short of market estimates. UBS maintained a Hold rating, noting that a forecast 6% dividend yield and 77% payout ratio provide valuation support.
UBS published a research report stating that CHINA TOWER (00788.HK) -0.570 (-5.864%) Short selling $35.20M; Ratio 27.171% 's 2Q revenue and EBITDA were 9% to 16% below market expectations, mainly due to a decline in tower business revenue. Net profit was 15% above market expectations, primarily because certain tower assets had been fully depreciated since October last year.
The report cited management guidance that cash collections are expected to improve in 2H26, while capital expenditure is expected to remain broadly stable YoY.
The broker lowered its 2026-2028 net profit and EPS forecasts for CHINA TOWER (00788.HK) -0.570 (-5.864%) Short selling $35.20M; Ratio 27.171% by 10% to 14% to reflect declining tower revenue caused by telecom operators optimizing mobile networks. It also cut the TP from HKD11.6 to HKD10. The company is currently trading at a forecast 6% dividend yield for this year (based on the broker's latest earnings forecasts) and a distributable net profit payout ratio of 77%, which is expected to provide valuation support. The broker maintained a Hold rating on the stock. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-11 16:25.)