Nationwide Lithium Battery Recycling Push Could Be A Game Changer For China Tower (SEHK:788)

• In early January 2026, the Board of China Carbon Neutral Development Group announced a cooperation agreement with China Tower and China Renewable Resources to build a nationwide, standardized lithium battery recycling system and advance China’s “dual‑carbon” goals.
• By linking China Tower’s extensive communication infrastructure with online traceability technology and a broad physical recycling network, the partnership aims to create a closed‑loop ecosystem for lithium batteries that tackles long‑standing industry issues like fragmentation and weak traceability.
• We’ll now examine how this lithium battery circular‑economy initiative could influence China Tower’s investment narrative and long‑term positioning.

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What Is China Tower's Investment Narrative?

For China Tower, the big-picture case still rests on a steady, utility-like tower business that throws off earnings and dividends, with the market currently pricing the shares at a discount to both analyst and DCF-based fair values. Near term, investors are watching for clearer evidence that modest revenue growth can translate into the forecast earnings expansion, while keeping an eye on high leverage, low return on equity and a fast-changing, relatively inexperienced board. Against that backdrop, the new lithium battery recycling alliance looks more like an option than a core driver right now: it deepens China Tower’s role in the “dual‑carbon” agenda and could open up incremental circular‑economy revenue streams over time, but the stock’s recent muted price moves suggest the market has not yet treated it as a material short‑term catalyst.

However, investors should be aware that leverage and governance changes could reshape the risk profile. Despite retreating, China Tower's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Three Simply Wall St Community fair value views span roughly CNY12 to CNY34 per share, showing very different expectations. Set against this, the lithium recycling partnership and existing debt load could both influence how China Tower actually uses its cash flows over the next few years, so it makes sense to weigh multiple viewpoints before forming your own.

Explore 3 other fair value estimates on China Tower - why the stock might be worth over 2x more than the current price!

Build Your Own China Tower Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your China Tower research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free China Tower research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate China Tower's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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