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China Communications Services (0552) AI Stock Analysis
China Communications Services
(HKEX:0552)
The score is primarily driven by very attractive valuation (low P/E and high dividend yield) and supportive technical momentum (price above key moving averages with positive MACD). Offsetting these positives, financial performance is held back by the sharp 2025 deterioration in operating/free cash flow and the revenue decline, despite a generally stable balance sheet.
China Communications Services (0552) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 3.70B
- Dividend Yield
- 6.96%
- Average Volume (3M)
- 7.42M
- Price to Earnings (P/E)
- 3.5
- Beta (1Y)
- 0.85
- Revenue Growth
- 0.21%
- EPS Growth
- -0.68%
- Country
- Hong Kong
- Employees
- 73,157
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
China Communications Services Business Overview & Revenue Model
Company Description
China Communications Services Corporation Limited, together with its subsidiaries provides telecommunications support services worldwide. It offers telecommunications infrastructure services, including planning, design, construction, and project supe...
How the Company Makes Money
The company makes money primarily by delivering contracted services and solutions across three broad lines of business. (1) Telecommunications infrastructure services: it earns revenue from undertaking network engineering, construction, installation,...
China Communications Services Financial Statement Overview
Summary
Earnings and balance sheet quality are generally stable (thin but steady margins and historically low leverage), but 2025 showed clear weakening: revenue declined (-4.1% YoY) and cash generation deteriorated sharply (free cash flow down ~97.7% YoY with weaker cash conversion), which materially raises near-term execution and funding risk.
Income Statement
58NeutralBalance Sheet
74PositiveCash Flow
38Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 145.38B | 146.21B | 150.00B | 148.61B | 140.75B | 133.99B |
| Gross Profit | 15.66B | 15.91B | 17.60B | 17.26B | 15.98B | 14.78B |
| EBITDA | 4.02B | 4.11B | 4.03B | 5.90B | 3.49B | 3.17B |
| Net Income | 3.40B | 3.52B | 3.61B | 3.58B | 3.36B | 3.16B |
Balance Sheet | ||||||
| Total Assets | 139.19B | 136.74B | 136.62B | 121.79B | 110.26B | 100.03B |
| Cash, Cash Equivalents and Short-Term Investments | 15.01B | 18.33B | 25.94B | 29.58B | 24.54B | 26.89B |
| Total Debt | 1.85B | 7.48B | 2.03B | 2.38B | 2.46B | 2.38B |
| Total Liabilities | 90.07B | 87.63B | 90.00B | 78.12B | 68.64B | 60.42B |
| Stockholders Equity | 47.84B | 47.86B | 45.44B | 42.58B | 40.36B | 38.41B |
Cash Flow | ||||||
| Free Cash Flow | -83.60M | 179.30M | 5.14B | 4.14B | 3.68B | 2.74B |
| Operating Cash Flow | 675.91M | 937.72M | 6.22B | 5.36B | 4.91B | 4.51B |
| Investing Cash Flow | -2.82B | -4.12B | -7.17B | -2.12B | -2.29B | -3.67B |
| Financing Cash Flow | -2.09B | -2.11B | -2.34B | -2.40B | -1.74B | -628.35M |
China Communications Services Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0552, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 3.90, below the 50-day MA of 3.97, and below the 200-day MA of 4.07, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 31.59 is Neutral, neither overbought nor oversold. The STOCH value of 9.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0552.
China Communications Services Peers Comparison
Overall Rating
HK:682378Outperform
HK:078874Outperform
HK:188372Outperform- HK:055268Neutral
HK:131051Neutral
HK:000848Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:6823 | 78Outperform | HKD 92.13B | 17.36 | 14.86% | 6.81% | 7.09% | 4.21% |
| HK:0788 | 74Outperform | HKD 156.54B | 9.62 | 6.68% | 6.62% | 3.86% | 24.32% |
| HK:1883 | 72Outperform | HKD 8.75B | 9.46 | 8.37% | 7.61% | 0.18% | 0.65% |
| HK:0552 | 68Neutral | HKD 25.56B | 3.52 | 7.10% | 6.96% | 0.21% | -0.68% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| HK:1310 | 51Neutral | HKD 7.86B | 24.98 | 14.97% | 6.47% | 6.22% | 42.92% |
| HK:0008 | 48Neutral | HKD 38.79B | -459.63 | -40.50% | 7.63% | 7.10% | 70.22% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0552 | China Communications Services Corp Class H | 3.69 | -0.73 | -16.44% | |
| HK:0788 | China Tower Corporation | 8.96 | -1.69 | -15.90% | |
| HK:1883 | CITIC Telecom International Holdings | 2.37 | 0.02 | 0.94% | |
| HK:1310 | HKBN | 5.32 | -1.39 | -20.75% | |
| HK:6823 | HKT Trust and HKT | 12.15 | 1.42 | 13.19% | |
| HK:0008 | PCCW Limited | 5.01 | -0.15 | -2.93% |
China Communications Services Corporate Events
China Communications Services Turns to AI Growth and Higher Payouts Amid Profit Decline
China Communications Services reported interim results for the six months ended 30 June 2026, showing revenues of RMB74,480 million, down 3.2% year-on-year, and net profit of RMB1,970 million, down 7.5%, as the company navigated a complex external en...
China Communications Services Sets Higher Dividend Payout Targets for 2026–2028
China Communications Services has unveiled a three-year dividend distribution and shareholder return plan covering 2026 to 2028, aimed at enhancing investment value and providing more stable and predictable cash returns. The framework is designed to...
China Communications Services Sets Board Meeting to Approve 2026 Interim Results
China Communications Services Corporation Limited has scheduled a board meeting for 26 August 2026 in Beijing to review and approve the interim results for the six months ended 30 June 2026. The announcement signals the forthcoming release of the gro...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 06, 2026