CHL
China Mobile Shs Sponsored American Deposit Receipt Repr 5 Shs
TMT
06/16/2015
Presented
| Date | 06/10/2015 |
| Price | $65.38 |
| Market Cap | N/A |
| Ent Value | $200.21B |
| P/E Ratio | 15.2x |
| Book Value | $41.91 |
| Div Yield | 2.72% |
| Shares O/S | 4,090.00M |
| Ave Daily Vol | 970,000 |
| Short Int | N/A |
Current
| Price | $27.51 |
| Market Cap | $113.16B |
| China Mobile Limited, an investment holding company, provides mobile telecommunications and related services in Mainland China and Hong Kong. It offers voice services comprising local calls, domestic and international long distance calls, intra-provincial roaming, inter-provincial roaming, and international roaming, as well as voice value-added services, including caller identity display, caller restrictions, call waiting, call forwarding, call holding, voice mails, conference calls, and others. The company also offers data services, such as SMS, including subscriber-to-subscriber messages, short messages, and others; and MMS. In addition, it provides wireless data traffic services comprising mobile data traffic and WLAN data traffic; and applications and information services, including mobile music, mobile paper, mobile reading, mobile video, mobile market, etc. Further, the company offers telecommunications network planning design and consulting services; roaming clearance services; technology platform development and maintenance services; and mobile data solutions, system integration, and development, as well as operates a network and business coordination center. Additionally, it is involved in network planning and optimizing construction testing and supervising activities; technology support; development and training of mobile communication system; designing and selling electronic communication products; and provision of non-banking financial services, as well as computer hardware and software research and development services. The company was formerly known as China Mobile (Hong Kong) Limited and changed its name to China Mobile Limited in May 2006. The company was incorporated in 1997 and is based in Central, Hong Kong. China Mobile Limited is a subsidiary of China Mobile Hong Kong (BVI) Limited. |
Publicly traded companies mentioned herein: China Mobile Limited (CHL), China Telecom Corp Ltd (CHA), China Unicom Hong Kong Ltd (CHU)
Highlights
The presenter is long shared of China Mobile (CHL) and thinks it is extremely well positioned to benefit from the shift to 4G in China. In his opinion, recent weakness owed to macro concerns and tax issues has created a buying opportunity. CHL has the local scale and infrastructure necessary to take advantage of its 850 million subscribers and 2 million base stations (with 98% fiber going to each one) over the next few years. When the presenter thinks about CHL's current valuation and what the upside might look like over the next 2-3 years, he said, "Just look back at what it looked like before the 'unnatural' 2G to 3G transition: 49% ROE, one turn of leverage, and a license to print money. Plus, it has already spent the money necessary to achieve the scale it has".
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