CMBI has issued a research report adjusting the price target for CHINA TOWER (00788) downward from HK$13.1 to HK$12.1, while maintaining a 'Hold' rating on the stock. The report indicated that CHINA TOWER's revenue for the 2025 fiscal year increased by 2.7% year-on-year to RMB 100.4 billion, which was largely in line with the firm's projection of RMB 101.4 billion and the consensus estimate of RMB 100.87 billion. Net profit rose by 8.4% year-on-year to RMB 11.6 billion, exceeding the firm's forecast by 1% but falling 3.5% short of the consensus estimate. The net profit margin improved by 0.6 percentage points to 11.6%, primarily due to a decrease in the D&A expense ratio. This reduction was attributed to the completion of depreciation for tower assets acquired in 2015 by November 2025, coupled with the extended useful life of certain DAS equipment. Conversely, EBITDA declined by 1.1% year-on-year to RMB 65.8 billion, with the EBITDA margin contracting by 2.6 percentage points to 65.5%. This decrease was driven by a significant 23.5% year-on-year increase in other operating expenses, resulting from higher provisions for bad debts and a reduction in gains from asset disposals. Fourth-quarter revenue for 2025 stood at RMB 26.1 billion, reflecting a 3% year-on-year increase and a 5.6% sequential rise, indicating a typical seasonal recovery pattern. The company declared a dividend per share of RMB 0.458, a 9.8% year-on-year increase, with a payout ratio of 77%, which is higher than the ratio maintained from 2021 to 2024.