中国铁塔去年11月下旬曾公布，建议股份合并及削减股本，基准每10股合并为1股。生效后，每手买卖单位将由2，000股更改为500股。股份合并预期2025年2月20日（星期四）生效。UBS Group released a research report stating that it gives CHINA TOWER (00788) a "Neutral" rating, with a Target Price of 1.15 Hong Kong dollars. The company announced earlier that shareholders approved the proposed share consolidation and reduction of capital, which is expected to take effect from February 20.
The report stated that the potential share consolidation and adjustment of the number of shares per lot should create a more favorable trading environment for Institutions. After consolidation, volatility is expected to be less dramatic, and each lot's amount will be 2.5 times that of before, which may create a more friendly trading environment for Institutions.
Additionally, the bank pointed out that CHINA TOWER must allocate 10% of its annual net profit to statutory reserves, and this requirement will continue until the reserve balance reaches 50% of the registered capital. As the registered capital is reduced to one-tenth of the previous amount, the lower statutory reserve requirement will release more distributable profits, providing greater space for long-term dividend payments.
CHINA TOWER announced in late November last year that it proposed share consolidation and reduction of capital, with a baseline of consolidating every 10 shares into 1 share. After it takes effect, the trading unit will change from 2,000 shares to 500 shares. The share consolidation is expected to take effect on February 20, 2025 (Thursday).
