China Tower Corp. Ltd. (788) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Phoenix Media Investment (Holdings) Ltd.

China Mobile Ltd.

CITIC Telecom International Holdings Ltd.

APT Satellite Holdings Ltd.

China Tower Corp. Ltd.

Great Wall Terroir Holdings Ltd.

ISP Global Ltd.

Chuanglian Holdings Ltd.

Directel Holdings Ltd.

Why is China Tower Corp. Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 3.25% and Operating profit at 3.40% over the last 5 years
The company is Net-Debt Free

With ROE of 5.49%, it has a Very Expensive valuation with a 0.91 Price to Book Value

Over the past year, while the stock has generated a return of -12.97%, its profits have risen by 8.7% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.97% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is China Tower Corp. Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

China Tower Corp. Ltd.

-12.97%

44.83

20.91%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.25%

EBIT Growth (5y)

3.40%

EBIT to Interest (avg)

4.63

Debt to EBITDA (avg)

1.21

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

0.35

Tax Ratio

24.00%

Dividend Payout Ratio

71.76%

Pledged Shares

Institutional Holding

0.16%

ROCE (avg)

5.38%

ROE (avg)

4.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.91

EV to EBIT

15.74

EV to EBITDA

3.79

EV to Capital Employed

0.94

EV to Sales

2.56

PEG Ratio

0.02

Dividend Yield

1.10%

ROCE (Latest)

5.94%

ROE (Latest)

5.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

ROCE(HY)

Highest at 5.73%

PRE-TAX PROFIT(Q)

Highest at HKD 8,495.36 MM

NET PROFIT(Q)

Highest at HKD 6,429.54 MM

RAW MATERIAL COST(Y)

Fallen by -13.59% (YoY

CASH AND EQV(HY)

Highest at HKD 13,713.28 MM

DEBT-EQUITY RATIO (HY)

Lowest at 38.33 %

NET SALES(Q)

Highest at HKD 55,624.92 MM

EPS(Q)

Highest at HKD 0.37

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.13 times

OPERATING PROFIT MARGIN(Q)

Lowest at 61.6 %

Here's what is working for China Tower Corp. Ltd.

Pre-Tax Profit

Highest at HKD 8,495.36 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 6,429.54 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Net Sales

Highest at HKD 55,624.92 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

EPS

Highest at HKD 0.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 13,713.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 38.33 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -13.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for China Tower Corp. Ltd.

Operating Profit Margin

Lowest at 61.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio