China Communications Services Corporation Limited (CCS) released its 2021 annual results, which were lower than our expectations. But we believe that the market should appreciate the Company’s strategy of focusing on quality growth in the current macro environment. We also believe that the market seems to have overreacted to the results miss. We lowered our revenue and net profit forecasts for 22F and 23F after the 2021 results announcement. We reiterate our ADD rating, with a lower target price of HK$5.57 (based on 10x 2022F P/E, lowered from 11x).