CICC: Cuts China Tower (00788.HK) 2026/27 net profit forecasts, maintains "Outperform" rating and HK$11 target price

Zhitong Finance APP has learned that CICC issued a research report stating that due to pressure on China Tower's (00788.HK) tower business revenue, combined with the fading impact of depreciation expiry, it has lowered the company's 2026 and 2027 net profit forecasts by 5.2% and 2.5% to RMB 13.8 billion and RMB 15.0 billion, while maintaining an "Outperform" rating and a target price of HK$11.0, corresponding to 3.9x EV/EBITDA for 2026 and 2027, implying 20.5% upside from the current share price. The bank noted that the company's revenue for the first three quarters of 2026 was in line with expectations, while net profit was slightly below expectations, mainly due to the fading impact of depreciation expiry and slightly higher-than-expected expense growth.