Glonghui, March 19 | UBS released a report saying that China Tower's profit for the fourth quarter of last year was generally in line with expectations, and capital expenditure was higher than expected. The company's management's overall business guidelines for this year were stable compared to last year, including growth in unit revenue, stable capital expenditure, and dividend payment policies. Free cash flow is still the focus of investors, and management is confident that it will return to normal levels this year. Management indicates that capital expenditure will stabilize this year. Due to continued investment in the two wings and the strengthening or replacement of old communication towers, medium-term capital expenditure will depend on customer needs and technological improvements. Regarding the tower assets acquired in 2015, which will be completely depreciated in October next year, management indicated that the relevant situation will help profits depending on investment in strengthening and replacing the tower, which will continue the useful life of the old tower and cause more depreciation. The bank lowered its profit forecast for China Tower by 4% to 9% from this year to 2026, based on greater depreciation due to higher capital expenditure to strengthen the tower. Based on the recovery in cash income, capital expenditure assumptions were also raised. UBS lowered its target price for China Tower from HK$1.03 to HK$1.01, giving it a “neutral” rating.