CHINA TOWER (788) H2 2024 earnings summary

Executive summary

• Net profit increased by 10% year-over-year, supported by strong operating performance and multi-pillar revenue growth.

• Operating revenue reached RMB 97.772 billion, up 4% year-over-year, with steady growth across all business lines.

• Free cash flow surged to RMB 17.527 billion, up by RMB 16.402 billion year-over-year.

• Dividend payout ratio increased to 76%, with total dividend per share up 11.5% year-over-year.

• 230,000 telecommunication towers upgraded to digital towers, enhancing digital intelligence governance.

Financial highlights

• Operating profit was RMB 16.33 billion, up 12.6% year-over-year.

• EBITDA was RMB 66.56 billion, up 4.7% year-over-year.

• Net cash flow from operating activities was RMB 49.47 billion, up 50.6% year-over-year.

• Basic EPS was RMB 0.6138, up from RMB 0.5578 last year.

• Pre-cash flow was RMB 17.5 billion, up RMB 16.4 billion year-over-year.

Outlook and guidance

• Expectation of stable, low single-digit revenue growth and high single-digit 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 coverage expansion.

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

• Smart Tower and Energy businesses to focus on digital-intelligence, edge computing, and battery exchange market leadership.