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China Telecom

SEHK:728
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
728
SEHK
HK$350B
Market Cap
  1. Home
  2. HK
  3. Telecom
Company description

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People’s Republic of China. The last earnings update was 66 days ago. More info.


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728 Share Price and Events
7 Day Returns
2.1%
SEHK:728
4%
HK Telecom
-0.1%
HK Market
1 Year Returns
25.7%
SEHK:728
10.2%
HK Telecom
-12.6%
HK Market
728 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Telecom (728) 2.1% 6.4% 7.1% 25.7% 16.3% 26.5%
HK Telecom 4% 8.8% 15.3% 10.2% 13.6% 8.8%
HK Market -0.1% 3.7% 4.1% -12.6% 32.1% 13%
1 Year Return vs Industry and Market
  • 728 outperformed the Telecom industry which returned 10.2% over the past year.
  • 728 outperformed the Market in Hong Kong which returned -12.6% over the past year.
Price Volatility
728
Industry
5yr Volatility vs Market

Value

 Is China Telecom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Telecom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Telecom.

SEHK:728 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:728
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 8%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.83 (1 + (1- 25%) (27.61%))
1.002
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.002 * 8%)
10.01%

Discounted Cash Flow Calculation for SEHK:728 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Telecom is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:728 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CNY, Millions) 23,788.64 17,927.62 21,790.20 22,586.84 23,412.60
Source Analyst x9 Analyst x7 Analyst x1 Est @ 3.66% Est @ 3.66%
Present Value
Discounted (@ 10.01%)
21,623.16 14,812.27 16,364.77 15,418.91 14,527.72
Present value of next 5 years cash flows CN¥82,746.82
SEHK:728 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CN¥23,412.60 × (1 + 2%) ÷ (10.01% – 2%)
CN¥298,085.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CN¥298,085.81 ÷ (1 + 10.01%)5
CN¥184,964.73
SEHK:728 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CN¥82,746.82 + CN¥184,964.73
CN¥267,711.54
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥267,711.54 / 80,932.37
CN¥3.31
SEHK:728 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:728)
1.159
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.31 x 1.159
HK$3.84
Value per share (HKD) From above. HK$3.84
Current discount Discount to share price of HK$4.35
= -1 x (HK$4.35 - HK$3.84) / HK$3.84
-13.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of China Telecom is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Telecom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Telecom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:728 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CNY CN¥0.24
SEHK:728 Share Price ** SEHK (2019-02-18) in HKD HK$4.35
SEHK:728 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.862 CN¥3.75
Hong Kong Telecom Industry PE Ratio Median Figure of 11 Publicly-Listed Telecom Companies 15.61x
Hong Kong Market PE Ratio Median Figure of 1,481 Publicly-Listed Companies 10.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Telecom.

SEHK:728 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:728 Share Price ÷ EPS (both in CNY)

= 3.75 ÷ 0.24

15.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Telecom is good value based on earnings compared to the HK Telecom industry average.
  • China Telecom is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Telecom's expected growth come at a high price?
Raw Data
SEHK:728 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
12.8%per year
Hong Kong Telecom Industry PEG Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.22x
Hong Kong Market PEG Ratio Median Figure of 465 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

SEHK:728 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.47x ÷ 12.8%

1.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Telecom is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on China Telecom's assets?
Raw Data
SEHK:728 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CNY CN¥4.13
SEHK:728 Share Price * SEHK (2019-02-18) in HKD HK$4.35
SEHK:728 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.862 CN¥3.75
Hong Kong Telecom Industry PB Ratio Median Figure of 11 Publicly-Listed Telecom Companies 1.22x
Hong Kong Market PB Ratio Median Figure of 2,118 Publicly-Listed Companies 0.96x
SEHK:728 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:728 Share Price ÷ Book Value per Share (both in CNY)

= 3.75 ÷ 4.13

0.91x

* Primary Listing of China Telecom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Telecom is good value based on assets compared to the HK Telecom industry average.
X
Value checks
We assess China Telecom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. China Telecom has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is China Telecom expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Telecom expected to grow at an attractive rate?
  • China Telecom's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Telecom's earnings growth is expected to exceed the Hong Kong market average.
  • China Telecom's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:728 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:728 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 12.8%
SEHK:728 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 4.5%
Hong Kong Telecom Industry Earnings Growth Rate Market Cap Weighted Average 22.2%
Hong Kong Telecom Industry Revenue Growth Rate Market Cap Weighted Average 6.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:728 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:728 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 478,298 47,351 1
2022-12-31 462,094 43,950 1
2021-12-31 454,327 33,348 3
2020-12-31 412,631 106,260 24,307 22
2019-12-31 396,954 98,093 22,040 25
2018-12-31 380,888 101,607 20,599 24
SEHK:728 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-09-30 375,999 19,123
2018-06-30 374,709 100,191 19,632
2018-03-31 371,117 18,964
2017-12-31 366,229 96,502 18,617
2017-09-30 363,685 19,003
2017-06-30 360,021 101,787 18,900
2017-03-31 357,599 18,250
2016-12-31 352,534 101,135 18,018
2016-09-30 348,701 21,236
2016-06-30 343,077 100,686 20,747
2016-03-31 336,175 20,127
2015-12-31 331,202 108,750 20,054

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Telecom's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
  • China Telecom's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:728 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from China Telecom Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:728 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.59 0.59 0.59 1.00
2022-12-31 0.54 0.54 0.54 1.00
2021-12-31 0.41 0.50 0.31 3.00
2020-12-31 0.30 0.35 0.22 20.00
2019-12-31 0.27 0.30 0.23 23.00
2018-12-31 0.26 0.30 0.24 23.00
SEHK:728 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-09-30
2018-06-30 0.24
2018-03-31 0.23
2017-12-31 0.23
2017-09-30
2017-06-30 0.23
2017-03-31
2016-12-31 0.22
2016-09-30
2016-06-30 0.26
2016-03-31
2015-12-31 0.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Telecom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Telecom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Telecom has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has China Telecom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Telecom's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Telecom's year on year earnings growth rate has been positive over the past 5 years.
  • China Telecom's 1-year earnings growth is less than its 5-year average (0.6% vs 1.7%)
  • China Telecom's earnings growth has not exceeded the HK Telecom industry average in the past year (0.6% vs 19.9%).
Earnings and Revenue History
China Telecom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Telecom Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:728 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 375,999.14 19,123.14 64,797.43
2018-06-30 374,709.14 19,632.14 64,309.43
2018-03-31 371,117.14 18,964.14 63,799.43
2017-12-31 366,229.00 18,617.00 58,434.00
2017-09-30 363,685.00 19,003.00 59,334.00
2017-06-30 360,021.00 18,900.00 57,849.00
2017-03-31 357,599.00 18,250.00 56,671.00
2016-12-31 352,534.00 18,018.00 56,426.00
2016-09-30 348,701.00 21,236.00 55,817.00
2016-06-30 343,077.00 20,747.00 56,729.00
2016-03-31 336,175.00 20,127.00 56,258.00
2015-12-31 331,202.00 20,054.00 54,472.00
2015-09-30 327,103.00 17,872.00 52,205.00
2015-06-30 323,374.00 17,224.00 50,838.00
2015-03-31 322,663.00 17,179.00 56,348.00
2014-12-31 324,394.00 17,680.00 62,719.00
2014-09-30 326,863.00 18,989.00 67,856.00
2014-06-30 329,998.00 18,756.00 72,412.00
2014-03-31 326,928.00 18,388.00 70,689.00
2013-12-31 321,584.00 17,545.00 70,448.00
2013-09-30 311,522.00 17,110.00 69,112.00
2013-06-30 302,714.00 16,360.00 68,769.00
2013-03-31 293,087.00 15,381.00 67,181.00
2012-12-31 283,176.00 14,949.00 63,099.00
2012-09-30 272,694.00 15,205.00 60,353.00
2012-06-30 262,867.00 15,698.00 55,848.00
2012-03-31 254,250.00 16,204.00 52,126.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Telecom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Telecom used its assets less efficiently than the HK Telecom industry average last year based on Return on Assets.
  • China Telecom's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Telecom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Telecom has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is China Telecom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Telecom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Telecom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • China Telecom's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Telecom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Telecom Company Filings, last reported 4 months ago.

SEHK:728 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30
2018-06-30 335,545.00 83,267.00 19,319.00
2018-03-31 335,388.23 83,479.93 17,732.88
2017-12-31 326,697.00 104,377.00 22,510.00
2017-09-30
2017-06-30 321,090.00 93,184.00 25,647.00
2017-03-31 316,348.00 112,528.00 27,948.00
2016-12-31 316,348.00 112,528.00 27,948.00
2016-09-30
2016-06-30 309,800.00 106,157.00 32,912.00
2016-03-31 304,751.00 116,669.00 34,388.00
2015-12-31 304,751.00 116,669.00 34,388.00
2015-09-30
2015-06-30 295,791.00 90,627.00 23,401.00
2015-03-31 290,108.00 106,552.00 21,815.00
2014-12-31 290,108.00 106,552.00 21,815.00
2014-09-30
2014-06-30 283,933.00 99,147.00 19,090.00
2014-03-31 278,664.00 110,377.00 18,357.00
2013-12-31 278,664.00 110,377.00 18,357.00
2013-09-30
2013-06-30 271,085.00 116,546.00 21,370.00
2013-03-31 266,100.00 99,808.00 32,829.00
2012-12-31 266,100.00 99,808.00 32,829.00
2012-09-30
2012-06-30 260,010.00 47,069.00 38,272.00
2012-03-31 256,878.00 52,103.00 29,176.00
  • China Telecom's level of debt (24.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (43% vs 24.8% today).
  • Debt is well covered by operating cash flow (120.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.6x coverage).
X
Financial health checks
We assess China Telecom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Telecom has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is China Telecom's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.49%
Current annual income from China Telecom dividends. Estimated to be 3.16% next year.
If you bought HK$2,000 of China Telecom shares you are expected to receive HK$50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Telecom's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.01%).
  • China Telecom's dividend is below the markets top 25% of dividend payers in Hong Kong (5.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:728 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
Hong Kong Telecom Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 916 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:728 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.23 1.00
2022-12-31 0.22 1.00
2021-12-31 0.15 2.00
2020-12-31 0.12 21.00
2019-12-31 0.11 24.00
2018-12-31 0.10 24.00
SEHK:728 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2018-05-28 0.094 2.810
2018-04-12 0.092 3.105
2018-03-28 0.092 3.302
2017-05-23 0.093 2.941
2017-04-06 0.093 2.751
2017-03-21 0.093 2.778
2016-05-25 0.080 2.450
2016-04-28 0.080 2.547
2016-04-08 0.079 2.331
2016-03-23 0.079 2.337
2015-05-27 0.076 2.315
2015-04-09 0.076 1.680
2015-03-18 0.076 1.885
2014-04-10 0.075 2.169
2013-05-20 0.066 2.246
2012-03-20 0.067 2.095
2011-04-06 0.069 1.814
2011-04-04 0.072 1.720
2011-03-22 0.072 1.827
2010-09-08 0.075 2.064
2010-08-25 0.075 2.192
2010-04-08 0.074 2.285
2009-08-28 0.075 2.408
2009-05-27 0.075 2.207
2009-04-09 0.075 2.367
2009-03-25 0.075 2.576
2009-02-19 0.076 3.053

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China Telecom's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess China Telecom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Telecom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Telecom has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of China Telecom's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jie Yang
COMPENSATION CN¥854,000
AGE 56
TENURE AS CEO 3.2 years
CEO Bio

Mr. Yang Jie has been the Chairman and Chief Executive Officer of China Telecom Corporation Limited since December 30, 2015, Executive Director since October 20, 2004 and is its Legal Representative. Mr. Yang served as the President and Chief Operating Officer of China Telecommunications Corp. Ltd. from November 02, 2011 to April 25, 2016. He is the Chairman of China Telecommunications Corporation. He served as Vice President of China Telecommunications Corp. Ltd. He served as an Executive Vice President at China Telecom Corp. Ltd. He served as Deputy Director General of Shanxi Administration Bureau of Posts and Telecommunications, General Manager of Shanxi Telecommunications Corporation and Vice President of China Telecom Beijing Research Institute. He served as the General Manager of Business Department of the Northern Telecom of China Telecommunications Corporation. Mr. Yang has extensive experience in management and the telecommunications industry. Mr. Yang is a professor-level senior engineer. In 1984, Mr. Yang graduated from Beijing University of Posts and Telecommunications in 1984 with a bachelor Degree in radio engineering and obtained a doctorate degree in business administration (DBA) from the ESC Rennes School of Business in 2008. He obtained a Master Degree of Telecommunications and Information Management at the Norwegian School of Management and Handelshøyskolen BI.

CEO Compensation
  • Jie's compensation has been consistent with company performance over the past year.
  • Jie's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Telecom management team in years:

1.4
Average Tenure
54
Average Age
  • The average tenure for the China Telecom management team is less than 2 years, this suggests a new team.
Management Team

Jie Yang

TITLE
Chairman & CEO
COMPENSATION
CN¥854K
AGE
56
TENURE
3.2 yrs

Ruiwen Ke

TITLE
COO, President & Executive Director
COMPENSATION
CN¥772K
AGE
56
TENURE
0.3 yrs

Zhongyue Chen

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥271K
AGE
47
TENURE
4.2 yrs

Min Zhu

TITLE
Executive VP
AGE
53
TENURE
0.6 yrs

Yuzhu Ma

TITLE
Managing Director of Corporate Culture Department
COMPENSATION
CN¥415K
AGE
64

Tongqing Gao

TITLE
Executive VP & Executive Director
AGE
54
TENURE
14.9 yrs

Zhiyong Zhang

TITLE
Executive Vice President
AGE
53
TENURE
0.6 yrs

Guiqing Liu

TITLE
Executive Vice President
AGE
51
TENURE
0.6 yrs

Rebecca Wong

TITLE
Joint Company Secretary
TENURE
2.2 yrs

Jinxue Xiao

TITLE
General Manager of Xinjiang Branch
COMPENSATION
CN¥500K
AGE
54
Board of Directors Tenure

Average tenure and age of the China Telecom board of directors in years:

3.2
Average Tenure
55
Average Age
  • The tenure for the China Telecom board of directors is about average.
Board of Directors

Jie Yang

TITLE
Chairman & CEO
COMPENSATION
CN¥854K
AGE
56
TENURE
3.2 yrs

Ruiwen Ke

TITLE
COO, President & Executive Director
COMPENSATION
CN¥772K
AGE
56
TENURE
6.8 yrs

Zhongyue Chen

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥271K
AGE
47
TENURE
1.8 yrs

Min Zhu

TITLE
Executive VP
AGE
53
TENURE
0.3 yrs

Tongqing Gao

TITLE
Executive VP & Executive Director
AGE
54
TENURE
1.8 yrs

Erming Xu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥230K
AGE
69
TENURE
13.4 yrs

Aloysius Tse

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥459K
AGE
70
TENURE
13.4 yrs

Wang Hsuehming

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥243K
AGE
68
TENURE
4.8 yrs

Yixun Sui

TITLE
Chairman of Supervisory Committee
AGE
54

Shengguang Chen

TITLE
Non-Executive Director
AGE
54
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
24. Jan 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 21. Jan 19 21. Jan 19 -20,381,459 HK$4.06 HK$-82,836,397
22. Jan 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 17. Jan 19 17. Jan 19 20,053,674 HK$4.08 HK$81,863,048
03. Jan 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 28. Dec 18 28. Dec 18 -13,758,807 HK$3.97 HK$-54,570,158
07. Dec 18 Sell GIC Pte. Ltd. Company 06. Dec 18 06. Dec 18 -24,410,000 HK$4.01 HK$-97,835,202
28. Nov 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 23. Nov 18 23. Nov 18 -39,293,092 HK$4.08 HK$-160,197,841
14. Nov 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 09. Nov 18 09. Nov 18 20,423,084 HK$3.83 HK$78,128,478
08. Nov 18 Sell Franklin Resources, Inc. Company 05. Nov 18 05. Nov 18 -3,664,000 HK$3.74 HK$-13,695,670
31. Oct 18 Buy Franklin Resources, Inc. Company 29. Oct 18 29. Oct 18 5,708,000 HK$3.83 HK$21,865,080
12. Oct 18 Sell GIC Pte. Ltd. Company 10. Oct 18 10. Oct 18 -21,878,000 HK$4.00 HK$-87,588,534
01. Sep 18 Sell BlackRock, Inc. Company 30. Aug 18 30. Aug 18 -79,215,696 HK$3.78 HK$-299,427,550
07. Aug 18 Buy BlackRock, Inc. Company 02. Aug 18 02. Aug 18 21,464,025 HK$3.67 HK$78,826,654
03. Aug 18 Sell GIC Pte. Ltd. Company 02. Aug 18 02. Aug 18 -10,000,000 HK$3.65 HK$-36,489,990
27. Jul 18 Buy GIC Pte. Ltd. Company 26. Jul 18 26. Jul 18 6,832,000 HK$3.55 HK$24,231,749
12. Jun 18 Buy Franklin Resources, Inc. Company 08. Jun 18 08. Jun 18 11,879,040 HK$3.72 HK$44,197,149
07. Jun 18 Buy Franklin Resources, Inc. Company 05. Jun 18 05. Jun 18 4,826,000 HK$3.74 HK$18,064,216
19. Apr 18 Buy Franklin Resources, Inc. Company 17. Apr 18 17. Apr 18 30,588,300 HK$3.54 HK$108,386,550
18. Apr 18 Sell BlackRock, Inc. Company 13. Apr 18 13. Apr 18 -70,229,970 HK$3.56 HK$-249,878,304
11. Apr 18 Buy BlackRock, Inc. Company 06. Apr 18 06. Apr 18 81,805,970 HK$3.45 HK$282,639,318
X
Management checks
We assess China Telecom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Telecom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Does China Telecom Corporation Limited's (HKG:728) Share Price Indicate?

The company's stock. … saw a decent share price growth in the teens level on the SEHK over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price

Simply Wall St -

Is China Telecom Corporation Limited's (HKG:728) ROE Of 5.7% Concerning?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand China Telecom Corporation Limited (HKG:728). … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Holistic Look At China Telecom Corporation Limited (HKG:728)

In the case of China Telecom Corporation Limited (HKG:728), there's. … that has been able to sustain great financial health over the past … For those interested in digger a bit deeper into my commentary,

Simply Wall St -

Should Investors Be Happy About China Telecom Corporation Limited’s (HKG:728) Cash Levels?

Two important questions to ask before you buy China Telecom Corporation Limited (HKG:728) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of China Telecom’s cash flow, which will help you understand the stock from a cash standpoint. … China Telecom’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

Does China Telecom Corporation Limited's (HKG:728) P/E Ratio Signal A Buying Opportunity?

Based on the last twelve months, China Telecom's P/E ratio is 14.19. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 14.19 = CN¥3.44 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.24

Simply Wall St -

Interested In China Telecom Corporation Limited (HKG:728)? Here's How It Performed Recently

When China Telecom Corporation Limited (HKG:728) released its most recent earnings update (30 September 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … 728's trailing twelve-month earnings (from 30 September 2018) of CN¥19b has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 1.7%, indicating the rate at which 728 is growing has slowed down

Simply Wall St -

What Do Analysts Think About The Future Of China Telecom Corporation Limited's (HKG:728)?

Since China Telecom Corporation Limited (HKG:728) released its earnings in September 2018,. … the consensus outlook from analysts appear fairly confident, … with earnings expected to grow by 13% in the upcoming year

Simply Wall St -

Is China Telecom Corporation Limited's (HKG:728) Stock Available For A Good Price After Accounting For Growth?

China Telecom Corporation Limited (HKG:728) is considered a high growth stock. … However its last closing price of HK$4.21 left investors wondering whether this growth has already been factored into the share price. … Investors in China Telecom have been patiently waiting for the uptick in earnings.

Simply Wall St -

A Look At The Intrinsic Value Of China Telecom Corporation Limited (HKG:728)

In this article I am going to calculate the intrinsic value of China Telecom Corporation Limited (HKG:728). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF).

Simply Wall St -

Is China Telecom Corporation Limited (HKG:728) A Smart Pick For Income Investors?

China Telecom Corporation Limited (HKG:728) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 2.8% to shareholders, making it a relatively attractive dividend stock. … 5 questions to ask before buying a dividend stock

Simply Wall St -

Company Info

Map
Description

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, including local wireline telephone services and long distance wireline services; CDMA mobile voice services, such as local calls, domestic and international long distance calls, intra-provincial roaming, and inter-provincial roaming and international roaming; wireline Internet access services comprising dial-up and broadband services; wireless Internet access services; and wireline, Internet, and mobile value-added services. The company also provides Best Tone information services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge, and software development services. In addition, it offers managed data services that include digital data network, frame relay, and asynchronous transfer mode services for government agencies, large corporations, and institutions; and leased line services, as well as sells, repairs, and maintains customer-end equipment. Further, the company provides international telecommunications services, including lease of network equipment, international Internet access and transit, Internet data center, and mobile virtual network services in various countries, including the Asia Pacific, Europe, Africa, South America, and North America; and music production and related information, instant messenger, and e-commerce services, as well as sells telecommunications terminals and calling cards. As of December 31, 2017, it had approximately 122 million access lines in service; 134 million wireline broadband subscribers; and 250 million mobile subscribers. The company was incorporated in 2002 and is based in Beijing, the People’s Republic of China. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.

Details
Name: China Telecom Corporation Limited
728
Exchange: SEHK
Founded: 2002
HK$349,627,831,146
80,932,368,321
Website: http://www.chinatelecom-h.com
Address: China Telecom Corporation Limited
31 Jinrong Street,
Xicheng District,
Beijing,
100033,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 728 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 15. Nov 2002
OTCPK CHJH.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 15. Nov 2002
DB ZCH Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 15. Nov 2002
SHSC 728 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 15. Nov 2002
SZSC 728 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 15. Nov 2002
NYSE CHA SPONS ADR EACH REPR 100'H'COM CNY1 New York Stock Exchange US USD 14. Nov 2002
DB ZCHA SPONS ADR EACH REPR 100'H'COM CNY1 Deutsche Boerse AG DE EUR 14. Nov 2002
Number of employees
Current staff
Staff numbers
284,206
China Telecom employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 12:36
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/02/17
Last earnings filing: 2018/12/14
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.