BOC International has released a research report indicating a downward revision of CHINACOMSERVICE's (00552) profit forecasts for the current and next year by 8.1% and 11.8%, respectively. This adjustment considers an anticipated slowdown in telecommunications investments over the next two to three years. The target price has been reduced from HK$5.15 to HK$4.57, which corresponds to a projected 2026 price-to-earnings ratio of 7.5 times. The firm reiterated its "Buy" rating, maintaining an optimistic view on the company's medium-term growth prospects and expressing confidence in the demand for AI computing infrastructure.

For the second half of 2025, CHINACOMSERVICE reported a 3.2% year-on-year decline in revenue. However, net profit remained stable at RMB 1.48 billion, a figure that fell below the expectations of both the bank and the market. This performance was primarily attributed to a 4.1% year-on-year decrease in revenue from domestic telecommunications operators during the previous year.

In contrast, domestic non-telecom revenue increased by 5.5% year-on-year during the period. The non-telecom infrastructure services business now accounts for over half of the total revenue, contributing to a more diversified and resilient income structure.

As of the end of the second half of last year, the company's free cash flow reached RMB 8.42 billion, marking a 14.1% year-on-year increase and an improvement compared to the first half. This enhancement was mainly due to improved management of accounts receivable.