This article first appeared on GuruFocus .
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Operating Revenue:RMB100 billion, a year-on-year increase of 2.7%.
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Net Profit:RMB11.6 billion, up 8.4% year-on-year.
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EBITDA:RMB65.8 billion, down 1.1% year-on-year.
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Net Cash Flow from Operating Activities:RMB56.1 billion, up RMB6.65 billion year-on-year.
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Free Cash Flow:RMB26.6 billion, an increase of RMB9.1 billion year-on-year.
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TSP Business Revenue:RMB84.7 billion, accounting for 84.4% of total revenue.
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Two-Wing Business Revenue:RMB15 billion, up 11.9% year-on-year, accounting for 14.9% of total revenue.
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Smart Power Business Revenue:RMB10.1 billion, a year-on-year increase of 14.2%.
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Energy Business Revenue:RMB4.8 billion, a 7.5% increase year-on-year.
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Dividend Payout Ratio:Increased to 77% for the full year.
Release Date: March 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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China Tower Corp Ltd ( CHWRF ) reported a robust operating performance with a net profit increase of 8.4% year-on-year.
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The company has successfully implemented a multi-pillar development structure, with revenue from the two-wing business increasing to 14.9%.
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Significant advancements in technological innovation were made, with R&D expenses increasing by 82%.
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The company maintained a strong emphasis on shareholder returns, with the full-year dividend payout ratio rising to 77%.
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The smart power business experienced rapid growth, with revenue reaching RMB10.1 billion, a year-on-year increase of 14.2%.
Negative Points
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EBITDA decreased by 1.1% year-on-year due to an increase in tenant withdrawal resulting from the network consolidation between China Unicom and China Telecom.
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The growth rate of the number of tenants has slowed down, with the total power tenancy ratio slightly lower than the previous year.
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CapEx expenditure decreased significantly compared to 2024, raising concerns about future infrastructure investments.
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The introduction of the one single network and termination of some tenancy agreements may lead to a downward trend in EBITDA in 2026.
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Investment in maintaining and reinforcing existing tower sites is expected to increase by 30% to 40%, impacting short-term profitability.
Q & A Highlights
Q: Can you provide guidance for 2026, including revenue, net profit, EBITDA, and CapEx expenditure? A: (Zhiyong Zhang, Executive Chairman) In 2026, we expect steady growth in our one-core business, driven by the expansion of 5G infrastructure and digitalization trends. Our CapEx will focus on new tower sites, co-location, and IT infrastructure, remaining similar to 2025 levels. Profitability will improve as depreciation on older assets concludes, despite increased investment in tower site maintenance.
Q: What is the company's dividend policy, and is there potential for increased payouts? A: (Zhiyong Zhang, Executive Chairman) Currently, 10% of distributable earnings are reserved for dividends, but by 2028, this will be based entirely on attributable profit. This change will allow for potentially higher dividend payouts in the future.
Q: How is China Tower preparing for the commercialization of 6G, expected by 2030? A: (Zhiyong Zhang, Executive Chairman) We are actively involved in 6G development, leveraging our extensive tower infrastructure and technological capabilities. Our competitive advantages include non-replicable resources, co-location models, and integration of advanced technologies, positioning us well for 6G deployment.
Q: What are the growth prospects for the smart tower and energy businesses? A: (Zhiyong Zhang, Executive Chairman) The smart tower business will benefit from digitalization trends, expanding services across industries. The energy business, driven by green mobility and electric vehicle trends, is expected to see high growth, focusing on charging, power storage, and battery exchange.
Q: How will the introduction of a single network affect EBITDA and operational costs? A: (Zhiyong Zhang, Executive Chairman) The single network introduction will initially lower EBITDA due to tenant withdrawals and increased maintenance costs. However, after two to three years, as reinforcement expenses stabilize, we anticipate an upward trend in EBITDA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
