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China Communications Services
(0552)
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Rating:68Neutral
Price Target:
HK$4.00
▲(5.26% Upside)
Action:Reiterated
Date:08/06/26
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.
Positive Factors
Diversified service model
The company serves multiple infrastructure, outsourcing, and ICT solution needs rather than relying on one service line. This breadth can support recurring managed-service revenue alongside project work and provides several channels for participating in telecom and broader digitalization demand over the next several quarters.
Negative Factors
Revenue contraction
The latest annual revenue decline indicates that demand or project activity softened after several years of broadly flat to modest growth. Continued weakness would reduce operating scale, limit fixed-cost absorption, and make it harder for the company to expand earnings from its existing service platform.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified service model
The company serves multiple infrastructure, outsourcing, and ICT solution needs rather than relying on one service line. This breadth can support recurring managed-service revenue alongside project work and provides several channels for participating in telecom and broader digitalization demand over the next several quarters.
Read all positive factors
China Communications Services (0552) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$25.56B
Dividend Yield6.96%
Average Volume (3M)4.93M
Price to Earnings (P/E)3.5
Beta (1Y)0.85
Revenue Growth0.21%
EPS Growth-0.68%
CountryHK
Employees73,157
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.89
Shares Outstanding2,391,420,200
10 Day Avg. Volume4,486,627
30 Day Avg. Volume4,928,050
Financial Highlights & Ratios
PEG Ratio-4.10
Price to Book (P/B)0.58
Price to Sales (P/S)0.19
P/FCF Ratio155.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.78Price Target Upside25.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.55
Revenue Forecast (FY)HK$152.13B
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 s...
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, installati...
China Communications Services Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
38
Negative
| 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
Negative
3.80
Price Trends
3.97
Negative
4.03
Negative
4.07
Negative
Market Momentum
-0.10
Positive
31.59
Neutral
9.15
Positive
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 3.8 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$92.13B | 17.36 | 14.86% | 6.81% | 7.09% | 4.21% | |
74 Outperform | HK$156.54B | 9.62 | 6.68% | 6.62% | 3.86% | 24.32% | |
68 Neutral | HK$25.56B | 3.52 | 7.10% | 6.96% | 0.21% | -0.68% | |
68 Neutral | HK$8.75B | 9.46 | 8.37% | 7.61% | 0.18% | 0.65% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | HK$38.79B | -459.63 | -40.50% | 7.63% | 7.10% | 70.22% | |
53 Neutral | HK$7.86B | 24.98 | 14.97% | 6.47% | 6.22% | 42.92% |
* Communication Services Sector Average
HK:0552
China Communications Services
3.69
-0.73
-16.44%
HK:0788
China Tower
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 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
Aug 26, 2026
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...
China Communications Services Sets Higher Dividend Payout Targets for 2026–2028
Aug 26, 2026
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 ...
China Communications Services Sets Board Meeting to Approve 2026 Interim Results
Aug 17, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.