China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People’s Republic of China. More Details
No risks detected for 728 from our risk checks.
Very undervalued with excellent balance sheet and pays a dividend.
Share Price & News
How has China Telecom's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 728 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: 728's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 728 exceeded the Hong Kong Telecom industry which returned -13.3% over the past year.
Return vs Market: 728 underperformed the Hong Kong Market which returned 21.7% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is China Telecom's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StWould Shareholders Who Purchased China Telecom's (HKG:728) Stock Five Years Be Happy With The Share price Today?
1 month ago | Simply Wall StChina Telecom's (HKG:728) Returns Have Hit A Wall
2 months ago | Simply Wall StIs China Telecom Corporation Limited (HKG:728) A Good Fit For Your Dividend Portfolio?
Is China Telecom undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 728 (HK$2.33) is trading below our estimate of fair value (HK$13.76)
Significantly Below Fair Value: 728 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 728 is good value based on its PE Ratio (7.5x) compared to the Hong Kong Telecom industry average (10x).
PE vs Market: 728 is good value based on its PE Ratio (7.5x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 728 is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: 728 is good value based on its PB Ratio (0.4x) compared to the HK Telecom industry average (1x).
How is China Telecom forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 728's forecast earnings growth (11.6% per year) is above the savings rate (1.5%).
Earnings vs Market: 728's earnings (11.6% per year) are forecast to grow slower than the Hong Kong market (19.4% per year).
High Growth Earnings: 728's earnings are forecast to grow, but not significantly.
Revenue vs Market: 728's revenue (4% per year) is forecast to grow slower than the Hong Kong market (12.8% per year).
High Growth Revenue: 728's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 728's Return on Equity is forecast to be low in 3 years time (6.7%).
How has China Telecom performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 728 has high quality earnings.
Growing Profit Margin: 728's current net profit margins (5.3%) are lower than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: 728's earnings have grown by 1.8% per year over the past 5 years.
Accelerating Growth: 728's earnings growth over the past year (5.3%) exceeds its 5-year average (1.8% per year).
Earnings vs Industry: 728 earnings growth over the past year (5.3%) exceeded the Telecom industry 2.1%.
Return on Equity
High ROE: 728's Return on Equity (5.8%) is considered low.
How is China Telecom's financial position?
Financial Position Analysis
Short Term Liabilities: 728's short term assets (CN¥92.8B) do not cover its short term liabilities (CN¥262.8B).
Long Term Liabilities: 728's short term assets (CN¥92.8B) exceed its long term liabilities (CN¥78.3B).
Debt to Equity History and Analysis
Debt Level: 728's debt to equity ratio (5%) is considered satisfactory.
Reducing Debt: 728's debt to equity ratio has reduced from 38.2% to 5% over the past 5 years.
Debt Coverage: 728's debt is well covered by operating cash flow (733.7%).
Interest Coverage: 728's interest payments on its debt are well covered by EBIT (13.8x coverage).
What is China Telecom current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 728's dividend (5.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.9%).
High Dividend: 728's dividend (5.3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.05%).
Stability and Growth of Payments
Stable Dividend: 728's dividends per share have been stable in the past 10 years.
Growing Dividend: 728's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.9%), 728's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 728's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ruiwen Ke (58 yo)
Mr. Ruiwen Ke has been Chairman and Chief Executive Officer of China Telecom Corporation Limited since May 22, 2019. Mr. Ke served as President and Chief Operating Officer of China Telecom Corporation Limi...
CEO Compensation Analysis
Compensation vs Market: Ruiwen's total compensation ($USD127.23K) is below average for companies of similar size in the Hong Kong market ($USD933.95K).
Compensation vs Earnings: Ruiwen's compensation has been consistent with company performance over the past year.
Experienced Management: 728's management team is considered experienced (2.9 years average tenure).
Experienced Board: 728's board of directors are considered experienced (3.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
China Telecom Corporation Limited's company bio, employee growth, exchange listings and data sources
- Name: China Telecom Corporation Limited
- Ticker: 728
- Exchange: SEHK
- Founded: 2002
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: HK$188.572b
- Shares outstanding: 80.93b
- Website: https://www.chinatelecom-h.com/en/global/home.php
Number of Employees
- China Telecom Corporation Limited
- Everbright Centre
- 28th Floor
- Wan Chai
- Hong Kong
China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People’s Republic of China. It offers wireline voice services, i...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/20 10:06|
|End of Day Share Price||2021/06/18 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.