China Tower (0788)

China Tower (0788)

Postby winston » Sun Oct 08, 2017 6:28 am

not vested

May 29, 2017

China Tower invites banks to pitch for role in up to $10 billion HK IPO: IFR

HONG KONG (Reuters) - China Tower Corp, which owns and manages the mobile phone towers for China’s three state-owned telecom operators, has invited investment banks to pitch for a role in a Hong Kong IPO worth up to $10 billion, IFR reported on Monday.

The IPO would take place in late 2017 or early 2018, said IFR, a Thomson Reuters publication, citing people close to the deal.

China Unicom Hong Kong Ltd (0762.HK), China Mobile Ltd (0941.HK) and China Telecom Corp Ltd (0728.HK) formed China Tower in October 2015 , to save on infrastructure investment and cut management costs for their mobile phone towers.

The companies did not immediately reply to a Reuters request for comment on the China Tower IPO plans.

China Unicom’s 28.1 percent stake in China Tower accounts for about 46 percent of China Unicom’s market capitalization, valuing the mobile phone tower owner at $54 billion, IFR said, citing a Goldman Sachs report from April.

If China Tower were to sell a 10-20 percent stake in the IPO, the deal could raise between $5 billion and $10 billion.

Source: Reuters

https://www.reuters.com/article/us-chin ... SKBN18P07W
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Re: China Tower IPO

Postby winston » Sun Oct 08, 2017 6:36 am

Aug 7, 2017

Signals are good for China Tower IPO

by Alec Macfarlane

HONG KONG (Reuters Breakingviews) - The signals are good for a huge telecoms infrastructure listing. China Tower, owner of the world’s biggest collection of telecoms towers, is preparing an initial public offering in Hong Kong of up to $10 billion, Reuters says. At the right price, it should be well received.

The company was set up in 2014 by the country’s big three phone companies, China Mobile (0941.HK), China Unicom (0762.HK) and China Telecom (0728.HK). The trio pooled their telecom towers, in a sensible bid to stop duplication in a capital-intensive industry, and to bring in fresh private capital.

Earlier this year, Goldman Sachs analysts estimated the business was worth nearly $54 billion including debt. Their calculation assumes a 30 percent discount to international rivals, similar to the markdown investors place on Chinese telecoms. Industry heavyweight American Tower (AMT.N) has an EV of more than $79 billion.

Unlike the recent, uninspiring IPOs of Chinese state-owned banks, China Tower ought to lure more international investors. In general, the sector offers stability and high yields, and has spawned dedicated investment funds.

China Tower can point to a couple of strengths. First, the explosion in mobile data promises growth. It is rolling out the infrastructure that will power fourth-generation, or 4G, fast mobile broadband. The advent of even faster 5G technology will mean yet more business from the network operators. Goldman’s analysts said China Tower has significantly higher potential for earnings growth than foreign rivals.

Second, it has an unusually strong market position, with more than 95 percent of China’s towers, according to Morgan Stanley. So while it is still highly dependent on just three customers, who are also shareholders, it is at little risk of being undercut by competitors.

This will nonetheless take some selling. There are no listed peers in this market, so local investors will need to get up to speed on industry dynamics. Analysts also say lease fees look low, and depreciation seems high, by international standards – two issues prospective buyers will need to understand. Still, if China Tower can communicate effectively, this debut should go well.

Source: Reuters

https://www.reuters.com/article/us-chin ... SKBN1AN0NQ
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Re: China Tower IPO

Postby winston » Sun Oct 08, 2017 6:50 am

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China Tower plans IPO next year, says China Mobile VP

26 May, 2016

Sha Yuejia, vice-president of China Mobile, said at the company’s annual general meeting on Thursday that although there are “many conditions” necessary for China Tower Corp to go public, the company will likely list in 2017 as A and H shares.

The company is estimated to manage telecommunication towers valued at 270 billion yuan (US$41.2 billion), according to Chinese media reports.

In February, China Tower general manager Tong Jielu was quoted as saying that proceeds from the company’s IPO would be used for diversification into ventures such as charging stations for new-energy cars and a surveillance camera business..

Li also addressed the company’s investments in 5G resources and infrastructure, and said that China Mobile’s investment in 5G networks is “very small”. He said that the company had been researching the network for the last two years.

5G network standards will be set at the end of this year and the company hopes to begin internal trials together with other industry players in the second half of 2016, he said.

Source: SCMP

http://www.scmp.com/business/companies/ ... -mobile-vp
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Re: China Tower IPO

Postby winston » Thu Oct 12, 2017 7:56 am

China Tower could list sooner to capitalise on rise in telecom operators’ share prices

Infrastructure-sharing joint venture between China Mobile, China Unicom and China Telecom expected to see a higher valuation from an IPO this year

“At our estimated 235 billion yuan (US$35.6 billion) valuation of China Tower, the stakes of China Telecom and Unicom would each be worth 23 per cent of their existing market cap.”


China Mobile, which has the most number of towers on the mainland, contributed 116.4 billion yuan in assets for a 38 per cent share in China Tower.


China International Capital and Goldman Sachs were reportedly selected by China Tower in August to lead a planned Hong Kong IPO worth about US$10 billion.


Source: SCMP

http://www.scmp.com/tech/enterprises/ar ... -operators
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Re: China Tower IPO

Postby winston » Thu Oct 12, 2017 7:56 am

China Tower could list sooner to capitalise on rise in telecom operators’ share prices

Infrastructure-sharing joint venture between China Mobile, China Unicom and China Telecom expected to see a higher valuation from an IPO this year

“At our estimated 235 billion yuan (US$35.6 billion) valuation of China Tower, the stakes of China Telecom and Unicom would each be worth 23 per cent of their existing market cap.”


China Mobile, which has the most number of towers on the mainland, contributed 116.4 billion yuan in assets for a 38 per cent share in China Tower.


China International Capital and Goldman Sachs were reportedly selected by China Tower in August to lead a planned Hong Kong IPO worth about US$10 billion.


Source: SCMP

http://www.scmp.com/tech/enterprises/ar ... -operators
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Re: China Tower IPO

Postby winston » Tue Mar 12, 2019 11:04 am

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CHINA TOWER(788)

Analysis:
China Tower`s annual revenue reached RMB 71.819 billion, up 4.6% year-on-year; net profit increased by 36.4% year-on-year to RMB 2.50 billion.

Domestic mobile phone manufacturers such as Huawei and Xiaomi have said that they will launch new mobile phones soon.

The 5G landing time is getting closer and closer, and the demand for base station construction will increase accordingly.

Strategy:
Buy-in Price: $1.79, Target Price: $2.25, Cut Loss Price: $1.50

Source: Phillips
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Re: China Tower (0788)

Postby winston » Mon Apr 01, 2019 11:01 am

CHINA TOWER(788)

Analysis:

China Tower`s annual revenue reached RMB 71.819 billion, up 4.6% year-on-year; net profit increased by 36.4% year-on-year to RMB 2.50 billion.

Domestic mobile phone manufacturers such as Huawei and Xiaomi, have said that they will launch new mobile phones soon.

The 5G landing time is getting closer and closer, and the demand for base station construction will increase accordingly.

Strategy:
Buy-in Price: $1.79, Target Price: $2.25, Cut Loss Price: $1.50

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: China Tower (0788)

Postby winston » Mon Apr 15, 2019 11:04 am

not vested

CHINA TOWER(788)

Analysis:

China Tower`s annual revenue reached RMB 71.819 billion, up 4.6% year-on-year; net profit increased by 36.4% year-on-year to RMB 2.50 billion.

Domestic mobile phone manufacturers such as Huawei and Xiaomi have said that they will launch new mobile phones soon.

The 5G landing time is getting closer and closer, and the demand for base station construction will increase accordingly.

Strategy:
Buy-in Price: $1.95, Target Price: $2.25, Cut Loss Price: $1.65

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: China Tower (0788)

Postby winston » Thu Apr 25, 2019 10:46 am

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<Research Report>Citi Lifts CHINA TOWER (00788.HK) TP to $2.26, Kept Neutral

Citigroup noted Chinese telcos' weaker-than-expected tower rental and 5G capex guidance this year, meaning their cost control efforts will exert long-term revenue growth pressure on CHINA TOWER (00788.HK).

Overall, CHINA TOWER was retained Neutral, with target raised from $1.83 to $2.26.

Source: AAStocks Financial News
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Re: China Tower (0788)

Postby winston » Fri Apr 26, 2019 7:33 am

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'Sky's the limit' scenario does not apply to China Tower

by Ivan Tong

There are reasons for the price slump.

1) Wellington Management's sale of China Tower's shares has dealt a psychological blow to investors.

2) Institutional investors have investment needs to sell stocks with high revenue ahead of the Labor Day holiday and China Tower is at a greater risk of a price correction as it has risen too much.

3) Brokers have lowered China Tower's short-term rating and at the same time it looks like to be a "too bad to be true" scenario.

China Tower's valuation level seems a bit high, and its price-to-earnings ratio is more than 60 in terms of expected earnings in 2019.

China Tower was established in July 2014 to minimise overlapping investments in telecoms towers among China's three telecom giants - China Mobile (0941), China Unicom and China Telecom (0728) - who are customers and shareholders of China Tower.

However, China Tower has to take on the government's task of resource sharing.

Its economic benefits will be constrained because resource sharing means bigger discounts for the big three, and China Tower cannot set a higher rental price.


Source: The Standard

http://www.thestandard.com.hk/section-n ... 0426&sid=2
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