According to the Wisdom Finance APP, China Tower (00788) rose by more than 4% in the afternoon, reaching a high of 0.99 Hong Kong dollars, hitting a new high since September 21 in the 21st year. As of the time of publication, it rose by 2.11% to 0.97 Hong Kong dollars, with a turnover of 2.28 Hong Kong dollars.

GTJA pointed out that China Tower's net income growth in the first quarter of the 2024 fiscal year was stable, and it is expected that the company will maintain double-digit net income growth in 2024. In addition, depreciation accounts for an absolute dominant position in the company's operating expenses, which has a significant impact on the company's profitability. The bank pointed out that the depreciation period of the stock tower assets acquired in 2015 will expire in the fourth quarter of 2025, which will provide strong impetus for profit growth in 2026.

ZheShang Securities pointed out that the company is the world's largest communication tower infrastructure supplier, and its 'one body and two wings' business layout is steadily advancing. The new round of business pricing agreements has transitioned smoothly, and the depreciation of acquired stock assets will reach a turning point in 2026, when the company's profits are expected to accelerate. Since its listing, the company has distributed a cumulative dividend of 23.905 billion yuan, with a cumulative dividend rate of 61.95%. The company's dividend payment rate in 2023 was 67.5%. Assuming that the dividend ratio in 2024 will increase to 70%, the expected dividend yield calculated based on the closing price on May 10 is 5.0%.