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China Communications Services Corporation (0552) Fair Value & Analysis

Communication Services · HK · Market cap HK$27.1B

CC China Communications Services Corporation 0552 · HK
PriceHK$4.04
Fair ValueHK$8.39
Upside+107.7%
Quality48/100
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Expensive Growth
Thin margins · 2.4% net margin
Low debt · generates free cash flow
5.67% dividend yield
Ranks above peers (9/15)
Narrow moat 24/100
Evidence: High Range HK$6.66 – HK$11.76 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$8.37 to HK$8.39 (+0.2%) since Aug 2, 2026. Share price −1.0% over the past month.

Below-average quality, screening 108% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$6.66). The market is more pessimistic than our downside scenario.
  • Solid quality (48/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$5.21 HK$1.74 Fair Value HK$8.39 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$1.74 – HK$5.21 · fair‑value band HK$6.66 – HK$11.76 · the HK$4.04 price screens below the HK$8.39 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Communications Services Corporation (0552) currently trades at HK$4.04, while our model-based Fair Value estimate is HK$8.39, implying the stock looks roughly 107.7% undervalued today. The Quality Score stands at 48/100 (below-average quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, China Communications Services Corporation generated revenue of HK$150B at a net margin of 2.4%. Revenue declined 3.2% year over year. It earns a return on equity of 7.8%. The balance sheet holds a net cash position of HK$9.7B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$6.66 (bear case) to HK$11.76 (bull case); at HK$4.04, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 30% fair-value upside, at 108%, 0552 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$2.79 HK$2.98 HK$3.29 80
Residual Income HK$5.65 HK$5.99 HK$6.53 76
ROIC Compounder HK$5.40 HK$5.89 HK$6.31 72
All 23 models by family
DCF Models
FCF DCF HK$2.79 HK$2.99 HK$3.30 38
Owner Earnings HK$9.99 HK$14.79 HK$22.45 31
5Y Revenue Exit HK$4.67 HK$6.63 HK$9.25 39
5Y EBITDA Exit HK$5.77 HK$8.76 HK$12.40 41
5Y P/E Exit HK$7.58 HK$12.25 HK$17.39 38
10Y Revenue Exit HK$3.90 HK$5.54 HK$7.95 36
10Y EBITDA Exit HK$4.71 HK$7.04 HK$10.43 37
10Y P/E Exit HK$5.88 HK$9.51 HK$14.36 35
Earnings-Based
Graham-Dodd HK$3.45 HK$12.53 HK$16.90 54
Lynch FV HK$2.97 HK$4.25 HK$5.52 50
PEG = 1.0 HK$2.97 HK$4.25 HK$5.52 46
EPV HK$5.40 HK$5.89 HK$6.31 59
Multiples
P/E Multiple HK$8.38 HK$11.17 HK$13.96 63
P/S Multiple HK$6.47 HK$8.63 HK$10.79 58
P/B Multiple HK$6.47 HK$8.63 HK$10.79 55
EV/EBIT HK$6.78 HK$8.22 HK$9.65 53
EV/EBITDA HK$7.83 HK$9.61 HK$11.39 54
EV/Revenue HK$5.75 HK$7.14 HK$8.54 43
Asset-Based
NCAV (Graham) HK$3.46 HK$4.63 HK$6.91 50
Growth DCF
Growth DCF HK$2.79 HK$2.98 HK$3.29 80
Economic Profit
Residual Income HK$5.65 HK$5.99 HK$6.53 76
ROIC Compounder HK$5.40 HK$5.89 HK$6.31 72
Growth Earnings
Growth-Adj P/E HK$5.79 HK$8.28 HK$10.76 68

Widest divergence: Multiples (HK$8.63) versus Growth DCF (HK$2.98). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$150B
Revenue growth (YoY) -3.2%
Net margin 2.4%
Return on equity 7.8%
Free cash flow HK$179M FY2025
P/E ratio 6.5 as of Jul 2, 2026
More key figures
Operating margin 1.1%
EPS (TTM) HK$0.3100
Dividend yield 5.7%
Net cash HK$9.7B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 48 · Market factors (momentum, volatility) 49

Profitability 38
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Communications Services Corporation Limited, together with its subsidiaries provides telecommunications support services worldwide.

Full company description

China Communications Services Corporation Limited, together with its subsidiaries provides telecommunications support services worldwide. It offers telecommunications infrastructure services, including planning, design, construction, and project supervision for fixed line, mobile, broadband networks, data centers and supporting systems; and integrated solutions for informatization, digitalization, and intelligentization. The company also provides business process outsourcing services comprising network maintenance and optimization services that include fiber optic and electric cables, mobile base stations, network equipment, and terminals; general facilities management services for customers data centers, cloud computing bases, commercial and residential buildings, high-speed railway stations, airports, etc.; and supply chain services, including warehousing, transportation, integrated logistics, procurement and tendering, and quality inspection, as well as repair and disposition to domestic telecommunications operators, government and enterprise customers. In addition, it offers applications, content, and other services, such as system integration, software development and system support, value-added, and other services. Further, the company provides submarine cable installation and other related services. Additionally, it involved in the distribution of communication and information products; terminal sales; device distribution services; and distribution and procurement services of IT devices, auxiliary machinery, and equipment. The company was incorporated in 2006 and is headquartered in Beijing, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Communications Services Corporation reported revenue of HK$146B in FY2025 versus HK$134B in FY2021, a compound +2.2%/yr. Reported net income was HK$3.5B in FY2025, compounding +2.7%/yr from FY2021.

Growth Quality 39/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$146B
Latest YoY
−2.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.6%
Avg. growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.5%
Revenue +2.2%/yr
FY21 HK$134B
FY22 HK$141B
FY23 HK$149B
FY24 HK$150B
FY25 HK$146B
Net income +2.7%/yr
FY21 HK$3.2B
FY22 HK$3.4B
FY23 HK$3.6B
FY24 HK$3.6B
FY25 HK$3.5B

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Cite: Fair Value Calculator (2026). "China Communications Services Corporation Fair Value". https://www.fairvalue-calculator.com/stock/0552

Peer Group

Telecom Services · 253 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside +108% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 1% · Bottom 25%
Revenue growth -3% · Bottom 25%
Dividend yield (TTM) 5.7% · Above median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 6.5× · Cheaper than 75% of peers
P/B 0.57× · Cheaper than 75% of peers
P/S (TTM) 0.18× · Cheaper than 75% of peers
P/FCF 19.3× · Pricier than 75% of peers
EV/EBITDA 2.9× · Cheaper than 75% of peers
PEG 0.44× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 26
FUTURE 0 · sector 15
PAST 31 · sector 27
HEALTH 100 · sector 89
DIVIDEND 100 · sector 76

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥96.11 ¥109.88 +14%
Bharti Airtel Limited BHARTIARTL ₹1,945 ₹941.55 -52%
China Telecom Corporation 601728 ¥6.43 ¥8.36 +30%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 494.99 MXN +91%
Advanced Info Service Public Company ADVANC 374.00 THB 286.77 THB -23%
Chunghwa Telecom Co 2412 136.00 TWD 100.00 TWD -26%
Telefónica, S.A TEFN 75.67 MXN 108.96 MXN +44%
TLKM TLKM 2,590 IDR 3,898 IDR +50%
PT Indoritel Makmur Internasional Tbk., DNET 9,500 IDR 1,503 IDR -84%

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Frequently asked questions

Is China Communications Services Corporation (0552) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$8.39 versus a price of HK$4.04, about +108% (undervalued).
What is the fair value of 0552?
Our model-based fair value for China Communications Services Corporation is HK$8.39 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$4.04.
What is the quality score of 0552?
China Communications Services Corporation has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Communications Services Corporation (0552)?
China Communications Services Corporation reported trailing-twelve-month revenue of about HK$150B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0552?
The net profit margin of China Communications Services Corporation is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.
Does China Communications Services Corporation pay a dividend?
China Communications Services Corporation currently shows a dividend yield of about 5.67% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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