On May 20, China Tower fell 3.06% in regular trading, trading at HKD 10.4/share, with trading volume of HKD 150 million.

On the news front, the company's Q1 results disappointed the market. China Tower reported Q1 revenue of RMB 25.146 billion, up 1.5% year-over-year, with net profit attributable to shareholders of RMB 3.985 billion, up 31.8% year-over-year. Despite the profit growth, the figure fell short of market expectations, as investors had anticipated greater profit release following the expiration of depreciation on legacy assets.

The shortfall was primarily driven by a sharp increase in maintenance expenses. Towers acquired in 2015 have reached the end of their depreciation cycle and now require concentrated maintenance, with annual repair costs expected to rise 30-40% year-over-year. Management indicated the digestion period for these costs would last approximately two years. Additionally, the broader telecom sector weighed on sentiment, with China Telecom declining 2.46% and China Unicom falling 2.25%, creating sector-wide selling pressure.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)