China Telecom Earnings: Ex-VAT Net Profit Likely Flat
China Telecom's second-quarter services revenue declined 2.4%, which, in combination with value-added tax, or VAT, increases, drove down EBITDA by 7.6% and net profit by 13.5%.
China Telecom Corp Ltd Class H 00728
Bulls Say, Bears Say
Bulls
China Telecom's fixed-line business generates significant cash flow, which can be used to invest in its broadband and wireless networks.
Bears
China Telecom is the second smallest of the three big Chinese wireless telecom operators. Compared with its largest competitor, it lacks the scale to reduce unit costs.
Trading Information
- Previous Close Price
- HK$4.50
- Day Range
- HK$4.43–4.50
- 52-Week Range
- HK$4.24–6.08
- Bid/Ask
- HK$4.40 / HK$4.45
- Shares Outstanding
- 91.51B
- Market Cap
- HK$407.21B
- Volume/Avg
- 14M / 61M
Key Statistics
- Price/Earnings (Normalized)
- 13.61
- Price/Sales
- 0.71
- Dividend Yield (Trailing)
- 6.51%
- Dividend Yield (Forward)
- 6.51%
- Dividend Payment Schedule
- Jul
- Total Yield
- 6.51%
Company Profile
China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces but now operating nationally. It has 201 million broadband customers, and 442 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China and it is expanding overseas.
- Sector
- Communication Services
- Industry
- Telecom Services
- Stock Style Box
- Large Value
- Total Number of Employees
- 277,911
- Website
- https://www.chinatelecom-h.com
Competitors
Valuation
|
Metric
|
00728
|
00941
|
00762
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.61 | 13.52 | 9.92 |
Price/Book Value | 0.76 | 1.02 | 0.39 |
Price/Sales | 0.71 | 1.48 | 0.38 |
Price/Cash Flow | 2.62 | 5.34 | 1.59 |
Price/Earnings
00728
00941
00762
Financial Strength
|
Metric
|
00728
|
00941
|
00762
|
|---|---|---|---|
Quick Ratio | 0.55 | 0.80 | 0.63 |
Current Ratio | 0.66 | 0.88 | 0.70 |
Interest Coverage | 21.17 | 51.69 | 17.03 |
Quick Ratio
00728
00941
00762
Profitability
|
Metric
|
00728
|
00941
|
00762
|
|---|---|---|---|
Return on Assets (Normalized) | 4.06% | 5.79% | 2.52% |
Return on Equity (Normalized) | 7.67% | 8.60% | 4.55% |
Return on Invested Capital (Normalized) | 6.84% | 7.97% | 3.98% |
Return on Assets
00728
00941
00762
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