Asian Telecom Tower Trends: A General Improvement with China Tower Leading the Way

China Tower Results Confirm Lower Capex Outlook, but Were Otherwise Mixed

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New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/27037" target="_blank" data-smartkarma-citation="entities:27037:1">China Tower (788 HK)</a> recently reported strong 1Q19 results, boosted by the adoption of IFRS16 (big positive impact to EBITDA). Revenue growth has accelerated as the company laps price cuts in 1Q18.  With the higher EBITDA, we look for China Tower's strong rally to continue as measured EV:EBITDA is lower and the company looks very cheap vs global peers. We remain buyers of the stock with a target price of HK$2.30, but recognize conditions may be ripe for prices to move even higher as the stock re-rates. It is a long way from their post IPO experience, when poor IPO disclosures pushed the stock to HK$1.00.</p>

China Tower (788 HK) recently reported strong 1Q19 results, boosted by the adoption of IFRS16 (big positive impact to EBITDA). Revenue growth has accelerated as the company laps price cuts in 1Q18.  With the higher EBITDA, we look for China Tower's strong rally to continue as measured EV:EBITDA is lower and the company looks very cheap vs global peers. We remain buyers of the stock with a target price of HK$2.30, but recognize conditions may be ripe for prices to move even higher as the stock re-rates. It is a long way from their post IPO experience, when poor IPO disclosures pushed the stock to HK$1.00.

China Tower: Onwards and Upwards (For Now).