The Zhitong Finance App learned that China Tower (00788) rose by more than 4%. As of press release, it had risen 4.26% to HK$0.98, with a turnover of HK$418 million.

Guotai Junan pointed out that China Tower's profit growth in the first quarter of the 2024 fiscal year was steady. We expect the company to maintain double-digit net profit growth in 2024 due to strong demand for indoor coverage, strong growth in the Tower Smart Link business, and effective control of operating expenses.

Furthermore, depreciation absolutely dominates the company's operating expenses and has a significant impact on the company's profitability. The bank indicated that the depreciation period for existing tower assets acquired in 2015 will expire in the fourth quarter of 2025, which will provide a strong impetus for profit growth in 2026. The bank pointed out that the catalyst included an increase in dividends; the “two wings” business grew faster than market expectations.