UBS cuts China Tower stock target to HKD 10 and keeps Neutral

Published on 10/07/2026 at 01:06 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

UBS cut target to HKD 10.00 on October 5, 2026. China Tower stock saw first-half revenue down 1.80 percent at CNY 48,693 million.

China Tower, CNE100006V65, Illustration mit AI erstellt.

China Tower Corporation Limited (CNE100006V65) is carrying a sharper UBS valuation view after the bank cut its target from HKD 11.60 to HKD 10.00 on October 5, 2026, while retaining a Neutral rating. According to GMT EIGHT, UBS also reduced its 2026 to 2028 profit and earnings per share expectations by 10 percent to 14 percent.

Profit rises as revenue falls

China Tower reported first-half 2026 revenue of CNY 48,693 million, down 1.80 percent from CNY 49,601 million a year earlier, while attributable profit rose 30.10 percent to CNY 7,489 million. BTW reported that EBITDA fell 11.60 percent to CNY 30,252 million as depreciation and amortization declined 25.20 percent to CNY 19,141 million.

The contrast matters for investors because the profit increase did not come with stronger operating momentum. Operating cash flow fell 75.10 percent to CNY 7,135 million, while free cash flow turned negative at CNY 4,515 million in the first half of 2026, according to BTW.

Growth shifts beyond towers

The operating mix is moving in two directions. Tower business revenue fell 6.70 percent to CNY 35,263 million, while Smart Tower revenue rose 12.80 percent to CNY 5,332 million and Energy revenue increased 17.30 percent to CNY 2,591 million in the first half of 2026.

China Tower managed 2.172 million tower sites at June 30, 2026, up 23,000 from the end of 2025, but average annual revenue per site fell 6.90 percent to CNY 18,790. That combination gives UBS a measurable reason to lower its target: the asset base is expanding while monetization per site is weakening.

Dividend and reporting date

The board resolved an interim dividend of CNY 0.19122 per share for the first half of 2026, 44.30 percent above the CNY 0.13250 paid for the first half of 2025. The dividend increase is larger than the 30.10 percent rise in attributable profit and comes alongside negative free cash flow, making cash conversion the central counterweight to the payout story.

China Tower is scheduled to report nine-month 2026 results on October 20, 2026, according to Simply Wall St. The interim dividend payment date is October 30, 2026, giving the next results release a direct role in testing whether earnings quality can support shareholder returns.

Stock stays below its yearly high

China Tower was last at HKD 8.79 on HKEX on October 6, 2026 at 4:08 p.m. HKT, versus a 52-week range of HKD 8.65 to HKD 12.85 and market capitalization of HKD 153.6 billion. The Lang & Schwarz prior close was EUR 1.00 on October 5, 2026.

The further course of trading is shown by the continuously updated real-time quote of China Tower stock.