China is accelerating the development of 5G technology to counter the economic slowdown arising from the China-US trade war and the Covid-19 outbreak. 5G network, data centres and telecommunication facilities were identified as new infrastructure projects to stimulate growth.   

Against this backdrop, China Tower Corp Ltd (HKG: 0788) could be a key beneficiary from the increased network and capital expenditure. 

In this article, we will take a closer look at China Tower’s business profile, growth history, earnings trend, and how it rides on the 5G tailwind. 

Business Overview 

China Tower is the world’s largest telecommunications tower and infrastructure assets provider. It was listed on the Hong Kong stock exchange raising HK$58 billion in an IPO in Aug 2018. 

China Tower operates almost two million tower sites that span across 31 provinces and municipalities in China. According to its IPO prospectus, the group monopolises China’s telecommunication tower infrastructure sector with a 97% market share. 

The group operates