PRUDENT 5G ROLLOUT.

•    Current utilization of 5G base stations low

•    All eyes on terms for upcoming contract renewal with major customers

•    ESG rating has been downgraded since 2018

China Tower Corporation is the world’s largest telecommunications tower infrastructure service provider in terms of the number of towers, and a monopoly in the Chinese market with a 97% revenue market share. The group is well-positioned to benefit from China’s pursuit of world-leading telecommunications infrastructure but risks include potential leasing price cuts post 2022. With its major customers as the key shareholders (China Telecom, Unicom, Mobile), it is unclear to what extent China Tower has control over its prices.