788 HK

China Tower Corporation Limited

TMT


Presented:11/02/2020
Price:HK$1.22
Cap:$27.50B
Current Price:HK$1.08
Cap:$24.35B

Presented

Date11/02/2020
PriceHK$1.22
Market Cap$27.50B
Ent Value$46.55B
P/E Ratio34.08x
Book ValueHK$1.15
Div Yield1.3%
Shares O/S174,813.00M
Ave Daily Vol441,379,491
Short IntN/A

Current

PriceHK$1.08
Market Cap$24.35B
China Tower Corp., Ltd. engages in the providing of telecommunications tower infrastructure services. The company mainly has three business segments: following as The Tower Business segment mainly uses sites to carry out macro cell and small cell businesses with telecommunications service providers, The Distributed Antenna System (DAS) Business segment mainly provides indoor distributed antenna systems to TSPs and to attach their telecommunications equipment. The Trans-sector Site Application and Information (TSSAI) Business segment mainly uses the sites dispersed nationwide and provide site resource services, including infrastructure, maintenance services and power services, to host different types of devices for customers from different industries and support them to build up different types of nationwide or regional networks. China Tower was founded in July 2014 and is headquartered in Beijing, China.

China Tower Corp Ltd (788 HK) - Long

Publicly traded companies mentioned herein: American Tower Corp (AMT), China Mobile Ltd (941 HK), China Telecom Corp (728 HK), China Tower Corp Ltd (788 HK), China Unicom Hong Kong Ltd (762 HK), Crown Castle International Corp (CCI), SBA Communications Corp (SBA), ZTE Corp (763 HK).

Highlights

The presenter is long shares of China Tower Corp Ltd (788 HK), the monopoly provider of cellular towers in China, with 97% - 98% market share. He views it as a secular grower with a compelling valuation. The company went public in August 2018 at a price of HKD1.20 and peaked at HKD2.20 midway through last year. Since then, its price has collapsed back toward its IPO price due to trade war concerns and setbacks to the 5G rollout in China. Those concerns have now been worked out, numbers have reset, and the presenter believes that investors are more realistic about future growth. 

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Idea Discussion

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