00788 Should I Buy

The analyst rating from UBS for China Tower (00788.HK) is a "Buy," despite a reduction in the target price from HKD 15 to HKD 13.5. The rationale behind this rating includes the company's ability to maintain stable dividend growth due to an accounting change that extends the depreciation period of Distributed Antenna System (DAS) assets, which will reduce depreciation expenses by approximately RMB 870 million. This change is expected to support net profit amid macroeconomic challenges. However, UBS has adjusted its net profit forecasts for 2025-28 downward by 4-19% due to lower tower revenue and increased operating expenses.