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China Communications Services
(0552)
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Rating:68Neutral
Price Target:
HK$4.50
â–²(18.42% 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
Integrated telecom infrastructure platform
The company supports multiple stages of telecom infrastructure deployment and operations, creating a broad service platform rather than reliance on one activity. This integrated model can support recurring customer relationships with telecom operators, enterprises and government clients.
Negative Factors
2025 revenue contraction
The latest revenue decline signals weaker demand or reduced activity across the service base. If sustained, lower topline growth could limit scale benefits, weaken bargaining power with suppliers and customers, and make it harder to offset the company’s fixed operating costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated telecom infrastructure platform
The company supports multiple stages of telecom infrastructure deployment and operations, creating a broad service platform rather than reliance on one activity. This integrated model can support recurring customer relationships with telecom operators, enterprises and government clients.
Read all positive factors
China Communications Services (0552) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$27.50B
Dividend Yield6.46%
Average Volume (3M)8.80M
Price to Earnings (P/E)3.8
Beta (1Y)0.74
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. Volume11,762,789
30 Day Avg. Volume8,798,725
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$4.95Price Target Upside30.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.52
Revenue Forecast (FY)HK$152.18B
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 primarily makes money by delivering project-based and recurring services to customers (notably telecommunications operators, as well as government and enterprise clients) across several major revenue streams. (1) Telecommunications inf...
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 | 4.08B | 4.07B | 3.42B | 5.90B | 2.90B | 2.62B |
| 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 | 6.18B | 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 | 8.06B | 179.30M | 5.14B | 4.14B | 3.68B | 2.74B |
| Operating Cash Flow | 8.63B | 937.72M | 6.22B | 5.36B | 4.91B | 4.51B |
| Investing Cash Flow | -4.23B | -4.12B | -7.17B | -2.12B | -2.29B | -3.67B |
| Financing Cash Flow | -1.82B | -2.11B | -2.34B | -2.40B | -1.74B | -628.35M |
China Communications Services Technical Analysis
Neutral
3.80
Price Trends
4.05
Negative
4.05
Negative
4.15
Negative
Market Momentum
-0.05
Negative
48.16
Neutral
69.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0552, the sentiment is Neutral. The current price of 3.8 is below the 20-day moving average (MA) of 3.98, below the 50-day MA of 4.05, and below the 200-day MA of 4.15, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 69.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$8.88B | 9.60 | 8.37% | 7.53% | 0.18% | 0.65% | |
74 Outperform | HK$158.38B | 10.07 | 6.51% | 6.48% | 3.86% | 24.32% | |
69 Neutral | HK$93.42B | 17.60 | 14.86% | 6.68% | 7.09% | 4.21% | |
68 Neutral | HK$27.50B | 3.82 | 7.10% | 6.46% | 0.21% | -0.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | HK$41.31B | -489.45 | -6.77% | 7.19% | 7.10% | 70.22% | |
53 Neutral | HK$8.16B | 39.22 | 9.40% | 6.23% | 8.01% | 58.51% |
* Communication Services Sector Average
HK:0552
China Communications Services
3.98
-0.32
-7.51%
HK:0788
China Tower
9.15
-1.40
-13.30%
HK:1883
CITIC Telecom International Holdings
2.39
0.08
3.64%
HK:1310
HKBN
5.52
0.70
14.59%
HK:6823
HKT and HKT
12.39
1.53
14.13%
HK:0008
PCCW Limited
5.32
0.43
8.82%
China Communications Services Corporate Events
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 ...
China Communications Services Approves New Non-Executive Director at High-Turnout EGM
Jul 30, 2026
China Communications Services Corporation Limited announced that shareholders approved an ordinary resolution at its second extraordinary general meeting of 2026, held in Beijing on 30 July, with 78.93% of issued shares represented and no mandator...
China Communications Services Clarifies Board and Committee Roles
Jul 30, 2026
China Communications Services Corporation Limited has updated its board composition, confirming a mix of executive, non-executive and independent non-executive directors led by Chairman Luan Xiaowei and President Cui Zhanwei. The structure undersc...
China Communications Services Calls EGM to Elect New Non-Executive Director
Jul 6, 2026
China Communications Services Corporation Limited has called its second extraordinary general meeting of 2026 for 30 July in Beijing, setting out procedural details for shareholders of its H shares and domestic shares to participate. The meeting w...
China Communications Services Announces Board Change and Proposed Director Appointment
Jun 25, 2026
China Communications Services announced that non-executive director Tang Yongbo will resign from the board and its strategy committee due to work adjustment, effective after the company’s second extraordinary general meeting in 2026. The boa...
China Communications Services Names Veteran Insider as New Executive Vice President
May 28, 2026
China Communications Services Corporation Limited has announced a change in its senior management team, appointing industry veteran Gui Xiaoqing as Executive Vice President effective 28 May 2026. On the same date, incumbent Executive Vice Presiden...
China Communications Services Shareholders Approve Dividend, Auditor Reappointment and Share Issuance Mandate
May 28, 2026
China Communications Services said shareholders approved all resolutions at its annual general meeting and separate class meetings for domestic and H shareholders held in Beijing on 28 May 2026. The meetings, which met PRC company law and the firm...
China Communications Services Sets 2025 Final Dividend and Clarifies Tax Treatment
May 28, 2026
China Communications Services Corporation Limited has declared a final ordinary cash dividend of RMB 0.2241 per share for the financial year ended 31 December 2025, with shareholders’ approval obtained on 28 May 2026. The dividend will be pa...
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.