SEHK:941

Stock Analysis Report

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Executive Summary

China Mobile Limited provides mobile telecommunications and related services in Mainland China and Hong Kong.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has China Mobile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 941 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

941

2.6%

HK Wireless Telecom

5.8%

HK Market


1 Year Return

-22.4%

941

-2.8%

HK Wireless Telecom

-4.0%

HK Market

Return vs Industry: 941 underperformed the Hong Kong Wireless Telecom industry which returned -2.8% over the past year.

Return vs Market: 941 underperformed the Hong Kong Market which returned -4% over the past year.


Shareholder returns

941IndustryMarket
7 Day1.0%2.6%5.8%
30 Day-7.5%-0.4%4.0%
90 Day-9.7%-0.8%-2.6%
1 Year-18.0%-22.4%0.9%-2.8%-0.6%-4.0%
3 Year-22.4%-34.9%0.4%-12.4%1.3%-9.2%
5 Year-31.9%-46.3%-6.4%-23.4%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is China Mobile's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Mobile undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 941 (HK$54.65) is trading below our estimate of fair value (HK$202.86)

Significantly Below Fair Value: 941 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 941 is good value based on its PE Ratio (9.6x) compared to the Wireless Telecom industry average (14.4x).

PE vs Market: 941 is poor value based on its PE Ratio (9.6x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: 941 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 941 is good value based on its PB Ratio (0.9x) compared to the XA Wireless Telecom industry average (1.7x).


Next Steps

Future Growth

How is China Mobile forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 941's forecast earnings growth (3.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 941's earnings (3.8% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 941's earnings are forecast to grow, but not significantly.

Revenue vs Market: 941's revenue (4.1% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 941's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 941's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has China Mobile performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 941 has high quality earnings.

Growing Profit Margin: 941's current net profit margins (14.3%) are lower than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: 941's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: 941's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 941 had negative earnings growth (-7.9%) over the past year, making it difficult to compare to the Wireless Telecom industry average (1.6%).


Return on Equity

High ROE: 941's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is China Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: 941's short term assets (CN¥529.9B) exceed its short term liabilities (CN¥462.1B).

Long Term Liabilities: 941's short term assets (CN¥529.9B) exceed its long term liabilities (CN¥59.9B).


Debt to Equity History and Analysis

Debt Level: 941 is debt free.

Reducing Debt: 941 has no debt compared to 5 years ago when its debt to equity ratio was 1.8%.

Debt Coverage: 941 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 941 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

5.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 941's dividend (5.78%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.43%).

High Dividend: 941's dividend (5.78%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.03%).


Stability and Growth of Payments

Stable Dividend: 941's dividend payments have been volatile in the past 10 years.

Growing Dividend: 941's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.5%), 941's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 941's dividends in 3 years are forecast to be covered by earnings (58.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

China Mobile has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Jie Yang
Executive Chairman1.25yrsCN¥630.00kno data
Xin Dong
VP, CFO & Executive Director3.25yrsCN¥1.66mno data
Yuhang Wang
Executive Director0.67yrCN¥578.00kno data
Wai Lan Wong
Company Secretary15.08yrsno datano data
Tiger Lin
Chairman of China Mobile International Ltd and CEO of China Mobile International Ltdno datano datano data

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: 941's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jie Yang
Executive Chairman1.25yrsCN¥630.00kno data
Xin Dong
VP, CFO & Executive Director3.25yrsCN¥1.66mno data
Yuhang Wang
Executive Director0.67yrCN¥578.00kno data
Tiger Lin
Chairman of China Mobile International Ltd and CEO of China Mobile International Ltdno datano datano data
Mo Chi Cheng
Independent Non-Executive Director17.25yrsCN¥460.00k0.0015% CN¥16.4m
Man Yiu Chow
Independent Non Executive Director7.08yrsCN¥455.00kno data
Kin Wah Yiu
Independent Non-Executive Director3.25yrsCN¥470.00kno data
Qiang Yang
Independent Non-Executive Director2.08yrsno datano data

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 941's board of directors are considered experienced (3.3 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Mobile Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Mobile Limited
  • Ticker: 941
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$1.119t
  • Shares outstanding: 20.48b
  • Website: https://www.chinamobileltd.com

Number of Employees


Location

  • China Mobile Limited
  • The Center
  • 60th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHLNYSE (New York Stock Exchange)SPONSORED ADRUSUSDOct 1997
CHL NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNOct 1997
CTMADB (Deutsche Boerse AG)SPONSORED ADRDEEUROct 1997
K3PDSGX (Singapore Exchange)SPONSORED ADRSGUSDOct 1997
0HX8LSE (London Stock Exchange)SPONSORED ADRGBUSDOct 1997
CHLK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1997
941SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1997
CTMDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1997
941SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1997
CHTSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1997
941SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1997

Biography

China Mobile Limited provides mobile telecommunications and related services in Mainland China and Hong Kong. The company offers local calls; domestic and international long distance calls and roaming services; and value-added services, such as caller identity display, call waiting, conference calls, and others. It also provides wireless Internet service, as well as digital applications comprising music, video, reading, gaming, and animation; wireline broadband services; and wireline voice services. In addition, it offers dedicated line and IDC services to corporate customers in a range of industry sectors; and basic corporate communication products comprising corporate VPMN and SMS, and tailor made solutions. Further, the company provides international telecommunications services, which includes IDD, roaming, Internet, MNC, and value added business services. Additionally, it offers telecommunications network planning, design, and consulting services; roaming clearance, IT system operation, and technology support services; value-added platform development and maintenance services; mobile data, and system integration and development services; network construction and maintenance, network planning and optimizing, and training services; electronic communication products design and sale of related products; and non-banking financial services. It also provides mobile cloud research and development services; call center services; e-payment, e-commerce, and Internet finance services; and mobile Internet digital content services, as well as operates a network and business coordination center. The company serves 950 million mobile customers and 187 million wireline broadband customers. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 12:53
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.