China Tower Corporation (788) H2 2023 earnings summary

Executive summary

• Operating revenue reached RMB94,009 million in 2023, up 2.0% reported and 6.0% on a comparable basis; net profit rose 11.0% to RMB9,750 million.

• Two Wings businesses grew to 12.2% of operating revenue from 9.7%; tower tenancy reached 1.79 tenants per site.

Financial highlights

• Operating profit increased 8.9% to RMB14,502 million; EBITDA rose 1.1% to RMB63,551 million.

• Net profit increased from RMB8,787 million to RMB9,750 million; operating expenses rose 0.8% to RMB79,507 million.

• Operating cash flow was RMB32,840 million versus RMB65,134 million in 2022; free cash flow fell to RMB1,125 million from RMB38,927 million.

Outlook and guidance

• Strategy prioritizes TSP market leadership, stronger Smart Tower products and industry engagement, and growth in battery exchange and integrated power-backup services.

• Digital governance demand from government projects is expected to reach nearly RMB400 billion in 2024; key sectors have an informatization market of nearly RMB100 billion.

• 5G-A deployment, 5G+ industrial internet, clean-energy transition and rising light electric vehicle penetration are identified as growth opportunities.