CHINA TOWER(00788) 浙商证券·2024-12-11 08:23Investment Rating - Buy (Maintained) [8] Core Views - The company proposes a share consolidation and change in trading unit to enhance attractiveness, with the total issued share capital reducing from RMB 1760.08 billion to RMB 176.01 billion, and the trading unit changing from 2000 existing H shares to 500 consolidated and reduced H shares, expected to take effect on February 20, 2025 [3] - The company is leveraging its resource advantages to tap into the low-altitude economy, which is expected to grow significantly, with the low-altitude economy scale in China reaching RMB 5060 billion in 2023, a 33.8% YoY increase, and projected to exceed RMB 1 trillion by 2026 [4] - The company's "One Body, Two Wings" strategy is driving steady growth, with the depreciation of tower assets acquired in 2015 expected to reach an inflection point in 2026, significantly reducing depreciation and amortization expenses and contributing to profit growth [5] - The company is expected to achieve revenues of RMB 983 billion, RMB 1025 billion, and RMB 1068 billion in 2024-2026, with YoY growth rates of 4.5%, 4.3%, and 4.3%, respectively, and net profits attributable to the parent company of RMB 108 billion, RMB 125 billion, and RMB 195 billion, with YoY growth rates of 11.1%, 15.7%, and 55.6%, respectively [6] Financial Forecasts - Revenue is projected to grow from RMB 94,009 million in 2023 to RMB 106,843 million in 2026, with a CAGR of 4.3% [10] - Net profit attributable to the parent company is expected to increase from RMB 9,750 million in 2023 to RMB 19,501 million in 2026, with a CAGR of 26.1% [10] - EPS is forecasted to rise from RMB 0.06 in 2023 to RMB 0.11 in 2026 [10] - The company's P/E ratio is expected to decrease from 15.93x in 2024 to 8.85x in 2026, indicating improving valuation attractiveness [10] Strategic Initiatives - The company is focusing on the low-altitude economy, leveraging its extensive tower resources, with 2.081 million tower sites as of September 2024, and building a comprehensive low-altitude service network, including flight facility networks, low-altitude intelligent networks, and low-altitude service networks [4] - The "One Body, Two Wings" strategy continues to drive growth, with the company expanding its operator business, smart connectivity business, and energy business, particularly in areas like digital governance and energy solutions [5] Industry Outlook - The low-altitude economy is poised for significant growth, driven by policy and technological advancements, with the industry expected to exceed RMB 1 trillion by 2026, encompassing low-altitude infrastructure, manufacturing, operations, and flight support [4]