CHINA TOWER (00788) saw its stock price surge 5.01% during Wednesday's intraday trading session. The significant gain follows the company's recent announcement regarding the end of depreciation for 1.5 million legacy towers, which is expected to reduce costs and enhance profitability.
At the 2025 Technology Innovation Conference held in Beijing, CHINA TOWER's Chairman, Zhang Zhiyong, highlighted the company's achievements, including the construction of over 7 million base station projects and more than 3 million 5G base stations. These efforts have saved the industry over HKD 400 billion in construction and operational costs. China Galaxy Securities has initiated coverage with a "Buy" rating, citing the company's leadership in its "One Body, Two Wings" strategy and significant scale advantages.
With the depreciation of legacy towers now complete, CHINA TOWER is poised to benefit from reduced costs and an anticipated boost in dividends. The company has maintained an average dividend payout ratio of 60.9% since its IPO, reinforcing its commitment to shareholder returns.
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