CHINA TOWER (788) H2 2024 earnings summary

Executive summary

• Net profit increased by 10.0% year-over-year, reflecting strong operational performance and effective strategy execution.

• Operating revenue grew 4.0% year-over-year to RMB97,772 million, supported by diversified business pillars and steady growth across all lines.

• Dividend payout ratio rose to 76%, with total dividend per share up 11.5% from 2023, enhancing shareholder returns.

• R&D expenses surged 40%, supporting digital transformation, innovation, and digital-intelligence governance.

• Free cash flow surged to RMB17,527 million, up by RMB16,402 million year-over-year.

Financial highlights

• EBITDA was RMB66,559 million, up 4.7% year-over-year; EBITDA margin increased by 0.5 percentage points.

• Operating profit rose 12.6% to RMB16,330 million year-over-year.

• Net cash flow from operating activities was RMB49,468 million, up 50.6% year-over-year.

• Basic EPS was RMB0.6138, up 10.0% year-over-year.

• Total assets stood at RMB332,834 million; gearing ratio improved to 31.0%.

Outlook and guidance

• Expecting stable, low single-digit revenue growth and high single-digit net profit growth in 2025.

• DAS business revenue projected to grow in the low to mid-teens in 2025.

• CapEx for 2025 expected to remain similar to 2024, with continued investment in 5G, DAS, and digital infrastructure.

• Strategic focus on digital, green, and emerging industries, including AI, edge computing, and energy storage.

• Continued investment in technological innovation and next-gen communications.