お知らせ • Apr 01
Chunghwa Telecom Co., Ltd. to Report Q1, 2026 Results on May 07, 2026 Chunghwa Telecom Co., Ltd. announced that they will report Q1, 2026 results at 2:30 PM, Taipei Standard Time on May 07, 2026 お知らせ • Mar 02
Chunghwa Telecom Co., Ltd., Annual General Meeting, May 29, 2026 Chunghwa Telecom Co., Ltd., Annual General Meeting, May 29, 2026, at 09:00 Taipei Standard Time. Location: no,168, min tsu rd., banciao district, new taipei city Taiwan お知らせ • Jan 23
Chunghwa Telecom Co., Ltd. Provides Consolidated Earnings Guidance for the Year 2026 Chunghwa Telecom Co., Ltd. provided consolidated earnings guidance for the year 2026. For the year, the Company expects its total revenue to increase by TWD 5.88 to TWD 7.57 billion, or 2.5%~3.2%, to TWD 241.99 to TWD 243.68 billion as compared to the un-audited consolidated total revenue of 2025. The increase in revenue is expected to be propelled by the growth in mobile communications revenue, broadband access revenue, and data communications revenue, as well as revenue coming from the expansion of emerging businesses driven by the sustainability transformation opportunities, digital resilience opportunities, and digital economy opportunities empowered by AI. Income from operations is expected to range from a decrease of TWD 0.41 to an increase of TWD 1.11 billion, or -0.8%~2.3% to TWD 48.14 to TWD 49.66 billion as compared to the prior year. Income before income tax, net income attributable to stockholders of the parent and net earnings per share are expected to be TWD 48.71 to TWD 50.23 billion, TWD 37.39 TWD 38.94 billion and TWD 4.82 to TWD 5.02, respectively, representing a decrease of TWD 0.03 to an increase of TWD 1.55 billion, a decrease of TWD 1.30 to an increase of TWD 0.25 billion and a decrease of TWD 0.17 to an increase of TWD 0.03 respectively, year over year. お知らせ • Jan 20
Chunghwa Telecom Co., Ltd. to Report Q4, 2025 Results on Feb 03, 2026 Chunghwa Telecom Co., Ltd. announced that they will report Q4, 2025 results at 3:30 PM, Taipei Standard Time on Feb 03, 2026 お知らせ • Oct 02
Chunghwa Telecom Co., Ltd. to Report Q3, 2025 Results on Nov 06, 2025 Chunghwa Telecom Co., Ltd. announced that they will report Q3, 2025 results on Nov 06, 2025 お知らせ • Jul 09
Chunghwa Telecom Co., Ltd. to Report Q2, 2025 Results on Aug 05, 2025 Chunghwa Telecom Co., Ltd. announced that they will report Q2, 2025 results at 2:30 PM, Taipei Standard Time on Aug 05, 2025 お知らせ • Apr 09
Chunghwa Telecom Co., Ltd. to Report Q1, 2025 Results on May 08, 2025 Chunghwa Telecom Co., Ltd. announced that they will report Q1, 2025 results at 2:30 PM, Taipei Standard Time on May 08, 2025 お知らせ • Mar 20
Chunghwa Telecom Co., Ltd. Announces Reassignment of Representative of Juristic Person Director Chunghwa Telecom Co., Ltd. announced Reassignment of Representative of Juristic Person Director. Name of the previous position holder: Shih-Hung Tseng. Resume of the previous position holder: Director, Chunghwa Telecom Co., Ltd. Name of the new position holder: Shiow-Long Horng, Resume of the new position holder: President, Chunghwa Telecom Workers' Union Effective date of the new appointment: March 11, 2025. お知らせ • Feb 19
Chunghwa Telecom Co., Ltd. to Report Fiscal Year 2024 Results on Feb 26, 2025 Chunghwa Telecom Co., Ltd. announced that they will report fiscal year 2024 results on Feb 26, 2025 お知らせ • Jan 24
Chunghwa Telecom Co., Ltd., Annual General Meeting, May 29, 2025 Chunghwa Telecom Co., Ltd., Annual General Meeting, May 29, 2025. Location: no,168, min tsu rd., banciao district, new taipei city Taiwan お知らせ • Jan 22
Chunghwa Telecom Co., Ltd. Provides Earnings Guidance for the Year 2025 Chunghwa Telecom Co., Ltd. provided earnings guidance for the year 2025. For the year, the Company expects its total revenue to increase by TWD 2.71 billion ~ TWD 3.71 billion, or 1.2%~1.6%, to TWD 232.74 billion ~ TWD 233.74 billion as compared to the un-audited consolidated total revenue of 2024. Income from operations is expected to decrease by TWD 0.16 billion ~ TWD 1.58 billion, or -0.3%~3.4% to TWD 45.30 billion ~ TWD 46.72 billion as compared to the prior year. Net income attributable to stockholders of the parent and net earnings per share are expected to be TWD 35.84 billion ~ TWD 37.39 billion and TWD 4.62 ~ TWD 4.82, respectively, representing a decrease of TWD 1.37 billion to an increase of TWD 0.18 billion and a decrease of TWD 0.18 to an increase TWD 0.02 respectively, year over year. お知らせ • Oct 17
Chunghwa Telecom Co., Ltd. to Report Q3, 2024 Results on Nov 06, 2024 Chunghwa Telecom Co., Ltd. announced that they will report Q3, 2024 results at 3:30 PM, Taipei Standard Time on Nov 06, 2024 お知らせ • Mar 15
Chunghwa Telecom Co., Ltd. Proposes Cash Dividend Chunghwa Telecom Co., Ltd. at its annual general shareholders’ meeting to be held on May 31, 2024 the Board approved the proposal to distribute cash dividend of TWD 4.758 per share. お知らせ • Feb 24
Chunghwa Telecom Co., Ltd., Annual General Meeting, May 31, 2024 Chunghwa Telecom Co., Ltd., Annual General Meeting, May 31, 2024. Location: Chunghwa Telecom Telecommunication Training Institute No. 168, Minzu Road, Banchiao District New Taipei City Taiwan Agenda: To consider 2023 business report; to consider 2023 audit committee's review report; to consider 2023 compensation distribution to directors and employees; to consider 2023 directors' remuneration report; to consider Ratification of 2023 business report and financial statements; to consider Ratification of 2023 earnings distribution proposal; and to consider any other matters. お知らせ • Jan 26
Chunghwa Telecom Co., Ltd. Provides Earnings Guidance for the Year 2024 Chunghwa Telecom Co., Ltd. provided earnings guidance for the year 2024. For 2024, the Company expects total revenue to increase by TWD 5.34 ~ TWD 6.99 billion, or 2.4% ~3.1%, to TWD 228.54 ~TWD 230.19 billion as compared to the un-audited consolidated total revenue of 2023. The increase in revenue is expected to be propelled by increases in mobile communications revenue, broadband access revenue, and data communications revenue, as well as revenue coming from the expansion of emerging businesses driven by the sustainable transformation and digital economy. Income from operations is expected to decrease by TWD 1.12, to an increase by TWD 0.15 billion, or -2.4%~0.3% to TWD 45.23~TWD 46.50 billion as compared to the prior year. Income before income tax, net income attributable to stockholders of the parent and net earnings per share are expected to be TWD 45.90 ~ TWD 47.58 billion, TWD 35.66 ~ TWD 37.20 billion and TWD 4.60 ~ TWD 4.80, respectively, representing a decrease of TWD 1.09 to an increase of TWD 0.59 billion, a decrease of TWD 1.26 to an increase of TWD 0.28 billion and a decrease of TWD 0.16 to an increase TWD 0.04 respectively, year over year. お知らせ • Aug 11
Chunghwa Telecom Co., Ltd. Announces Management Changes The Board of Chunghwa Telecom Co., Ltd. approved the appointments of senior management. The 7th meeting of the 10th Board of Directors approved the appointment of the management as follows: Mr. Jung-Kuei Chen, president of Information Technology Group, will be discharged on August 15, 2023, and the successor will be Ms. Huei-Chi Yang, vice president of Telecommunication Laboratories. お知らせ • Aug 10
Chunghwa Telecom Co., Ltd. Announces Change of Corporate Governance Officer Chunghwa Telecom Co., Ltd. appointed An-An Hsia, Senior Director of Legal Affairs Department as Corporate Governance Officer in place of Ya-Chian Shiue, Assistant Vice President of Legal Affairs Department, effective August 9, 2023. お知らせ • Jul 12
Chunghwa Telecom Co., Ltd. to Report Q2, 2023 Results on Aug 08, 2023 Chunghwa Telecom Co., Ltd. announced that they will report Q2, 2023 results at 2:30 PM, Taipei Standard Time on Aug 08, 2023 お知らせ • Jul 08
Chunghwa Telecom Co., Ltd. Announces Executive Changes Chunghwa Telecom Co., Ltd. announced appointment of Chau-Young Lin as president. Name of the previous position holder: Shui-Yi Kuo, Chairman of Chunghwa Telecom Co., Ltd. Resume of the new position holder: President of the Company’s Information Technology Group. Effective date of the new appointment is July 7, 2023. Reason for the change: The 4th extraordinary meeting of the 10th board approved the appointment of the president. お知らせ • Jul 06
Chunghwa Telecom Co., Ltd. Announces Appointment of Chau-Young Lin as Representative of Juristic Person Director Chunghwa Telecom Co., Ltd. announced appointment of Chau-Young Lin as Representative of Juristic Person Director. Resume of the new position holder: President, Information Technology Group, Chunghwa Telecom Co., Ltd. Effective date of the new appointment is July 04, 2023. お知らせ • Jun 30
Chunghwa Telecom Co., Ltd. Announces Executive Changes The 3rd extraordinary meeting of Chunghwa Telecom Co., Ltd. the 10th Board of Directors has approved that Ms. Hsueh-Lan Wu, president of International Business Group will be discharged on June 30, 2023 due to retirement. Mr. Chin-Chou Chen, vice president of International Business Group will be the successor to Ms. Wu as the president of International Business Group. お知らせ • May 27
Chunghwa Telecom Co., Ltd. Approves Dividend for the Year 2022 Chunghwa Telecom Co., Ltd. announced at the share holders meeting held on May 26, 2022, the shareholders ratified 2022 earnings distribution proposal with cash dividend TWD 4.702 per share. Authorized the Chairman to set a record date of ex-cash dividend for distribution. お知らせ • Feb 01
Chunghwa Telecom Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year 2023 Chunghwa Telecom Co., Ltd. provided consolidated earnings guidance for the fiscal year 2023. for the year, the company expects revenue in the range of TWD 221.27 billion to TWD 222.79 billion, Income from Operations in the range of TWD 44.67 billion to TWD 45.99 billion, Net Income Attributable to Stockholders of The Parent in the range of TWD 34.55 billion to TWD 36.10 billion and EPS in the range of TWD 4.45 to TWD 4.65. お知らせ • Dec 30
Chunghwa Telecom Co., Ltd. to Report Q4, 2022 Results on Feb 02, 2023 Chunghwa Telecom Co., Ltd. announced that they will report Q4, 2022 results at 2:30 PM, Taipei Standard Time on Feb 02, 2023 Seeking Alpha • Dec 16
Is Chunghwa Telecom In Taiwan Worthy Of A Place In Our Portfolio? Summary
Taiwan's leading telecom company is delivering growth in revenue and EPS.
It is well funded with a good balance sheet.
We take a look at it in relation to our other telecom companies in our portfolio and find that we have to initiate a hold stance for now.
Investment Thesis
Our portfolio is heavily tilted toward real estate and financials. Nevertheless, we understand the importance of diversification, as this is the only "free lunch" that is offered in the business of investing.
We have had exposure towards telecom for years, and took the plunge into technology too this year, as we took a small position in Alibaba (BABA) which has gone from being a growth company to one looking more like a value proposition in our opinion.
Within the telecom sector, we hold Singtel (OTCPK:SGAPY) and China Mobile (CHLKF) which is no longer trading in the U.S. We hold these companies through their listings in Singapore and Hong Kong. Both are great companies with good prospects.
In our search to widen our exposure in telecom, we came across Chunghwa Telecom (CHT) in Taiwan.
Introduction
Chunghwa Telecom logo (Chunghwa Telecom)
CHT was established in 1996 and is Taiwan's largest integrated telecommunication service provider.
It offers fixed communication, mobile communication, broadband, and internet services. In addition, the Company also provides information and communication technology services to enterprise customers with big data, cybersecurity, cloud computing, and IDC capabilities, and is expanding businesses into emerging technology services such as big data, cloud services, artificial intelligence, and blockchain.
Here is what we found when we started to look under the hood.
2022 Q3 Financial Results
Let us start by stating that CHT is much smaller than both Singtel and China Mobile. Nevertheless, we have made a quick comparison between the three.
Comparison between CHT, Singtel & China Mobile (Author)
CHT's market share in the mobile phone market in Taiwan is 39.4%.
After the introduction of 5G, they have managed to grow ARPU, which is the average revenue per unit, by 4.2% for the mobile phone sector. Its churn rate is the lowest amongst its peers in Taiwan with only 0.4%.
Fixed broadband services are also seeing good growth in ARPU.
Their enterprise business group division grew revenue by 5.1% year on year. An area of growth for many telecom companies now lies in big data and cloud services. CHT is no different. These grew by 73.3% and 26.4% respectively.
The international business group division grew by 22.6%.
In 2021 CHT had an EPS for the full year of NT$4.61.
So far this year their EPS was NT$3.62 as of Q3 was slightly higher than the NT$3.50 it had in EPS the year before.
The free cash flow up to and including Q3 was NT$27 billion. This is 8.3% higher than the corresponding period of 2021.
Their EBITDA margin was 41.6%.
The company has a good balance sheet with a debt ratio of 23.7% with zero debt in relation to its EBITDA when we take into account all its liabilities minus its cash and cash equivalents. Cash stood at NT$ 32.9 billion at the end of Q3. This equates to about USD 1.1 billion.
Potential catalysts and risks to the thesis
We do believe that CHT can continue to grow its top and bottom line modestly for the next few years.
The market for both broadband internet and mobile subscriptions is fairly saturated and large investments are required for new developments similar to that of 5G. This will put a cap on the margin they can squeeze out of this.
The area of a larger growth will be cloud computing and servicing the business community in Taiwan. This is set to be the catalyst.