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China Mobile Ltd 00941

Morningstar Rating
HKD 66.75 −0.25 (0.37%)
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Company Report

China Mobile Leveraging Strong Mobile Position Into DICT Services

With 990 million customers, China Mobile not only dwarfs its Chinese competitors but also is the world's largest wireless telephone company. It has more mobile subscribers than its competitors despite being handicapped by the Chinese government in the past, which required it to use the homegrown TD-SCDMA technology standard for 3G mobile. However, with subsequent technology shifts to 4G and now 5G, the technology playing field is more level. Over time, competitors have taken mobile services market share, with China Mobile's share reducing from 71% in 2012 to 61% in 2022. However, China Mobile has been aggressive in the fixed-line broadband and internet services market, so its overall telecom services revenue share has only fallen to 52% from 55% over the same period.

Price vs Fair Value

00941 is trading at a 26% discount.
Price
HKD 67.00
Fair Value
HKD 41.00
Uncertainty
Low
1-Star Price
HKD 622.19
5-Star Price
HKD 94.30
Economic Moat
Pszhhm
Capital Allocation
Yvtk

Bulls Say, Bears Say

Bulls

China Mobile dominates the Chinese wireless telecom sector with a market share of around 61%.

Bears

China Mobile is controlled by the Chinese government, whose objectives may not align with the interests of minority shareholders. In particular, the government would like to see more parity among the three operators and generally lower prices.

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News

Trading Information

Previous Close Price
HKD 67.00
Day Range
HKD 66.4067.25
52-Week Range
HKD 58.9070.20
Bid/Ask
HKD 66.75 / HKD 66.90
Market Cap
HKD 1.43 Tril
Volume/Avg
15.3 Mil / 15.4 Mil

Key Statistics

Price/Earnings (Normalized)
10.75
Price/Sales
1.31
Dividend Yield (Trailing)
6.93%
Dividend Yield (Forward)
7.25%
Total Yield
6.93%

Company Profile

China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (990 million) but also the largest in the world. It has 60% of the total wireless market in China and 45% of the fixed-line broadband market. The firm is continuing to roll out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 2G/4G/5G network through China Broadnet. Strong growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Core
Total Number of Employees
450,000

Competitors

Valuation

Metric
00941
9432
9433
Price/Earnings (Normalized)
10.7515.6913.88
Price/Book Value
1.041.661.83
Price/Sales
1.311.181.68
Price/Cash Flow
5.286.75
Price/Earnings
00941
9432
9433

Financial Strength

Metric
00941
9432
9433
Quick Ratio
0.820.750.71
Current Ratio
0.900.980.76
Interest Coverage
53.5616.23122.21
Quick Ratio
00941
9432
9433

Profitability

Metric
00941
9432
9433
Return on Assets (Normalized)
7.29%4.84%6.15%
Return on Equity (Normalized)
10.98%14.22%14.87%
Return on Invested Capital (Normalized)
9.60%6.31%9.86%
Return on Assets
00941
9432
9433
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Telecom Services Industry Comparables

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Name
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Economic Moat
Market Cap
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VZ
Verizon Communications IncCrmnj$167.9 Bil
T
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DTEGY
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KDDIY
KDDI Corp ADRMgtsrq$62.9 Bil
AMX
America Movil SAB de CV ADR - Series BVfmnlz$60.1 Bil
CHTR
Charter Communications Inc Class AQvpkg$42.1 Bil
BCE
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ORAN
Orange SA ADRTqdcx$31.0 Bil

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